Warren Buffett's Successor, Greg Abel, Could Have Bought Any of 478 S&P 500 Companies -- but Chose to Pile $234 Million Into the Oracle of Omaha's Favorite Stock

For the first time in well over half a century, the trillion-dollar business that Warren Buffett helped build, Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), has a new leader. After delivering a greater-than-6,000,000% outperformance of the benchmark S&P 500 (SNPINDEX: ^GSPC) since the mid-1960s, the Oracle of Omaha retired as CEO on Dec. 31, handing the baton to his longtime protégé, Greg Abel.

Things have certainly changed in Abel's first quarter as Berkshire's boss, with a staggering 16 stocks in the company's flagship investment portfolio being jettisoned. But in some ways, the Berkshire ethos remains the same as it's always been.

Warren Buffett retired as Berkshire Hathaway's CEO on Dec. 31, 2025. Image source: The Motley Fool.

Though some things have changed at Berkshire Hathaway, the ethos remains the same

Abel's company closed out the March-ended quarter with a record $397.4 billion in combined cash, cash equivalents, and U.S. Treasuries. This figure has nearly quadrupled from the $105.4 billion in combined cash Berkshire had at the end of June 2022.

This rapidly growing treasure chest is the result of Buffett and Abel collectively selling more stock than they've purchased for 14 consecutive quarters (Oct. 1, 2022 – March 31, 2026), as well as Berkshire's owned assets continuing to generate positive operating cash flow.

Berkshire Hathaway is now sitting on an all-time high $397 Billion in Cash, enough to buy 478 companies in the S&P 500 🚨🤑 pic.twitter.com/iZKu6hjtKQ

-- Barchart (@Barchart) May 18, 2026

With $397.4 billion at his disposal, Abel could do just about anything. As of this writing on May 18, he has enough capital in Berkshire's coffers to outright acquire 478 of the 499 companies (excluding Berkshire Hathaway) that make up the S&P 500 Index.

But instead of making a major acquisition, Abel did something in the first quarter that would have put a smile on his predecessor's face: he piled $234 million into Warren Buffett's favorite stock.

Image source: Getty Images.

Buffett and Abel have spent $78 billion buying this stock since July 2018

The quirk with the Oracle of Omaha's favorite stock to buy is that you won't find it listed in Berkshire's quarterly filed Form 13Fs. Instead, you'll need to peruse Berkshire's quarterly operating results and find the page preceding the executive certifications. That's where you'll discover detailed information about Buffett's favorite stock... Berkshire Hathaway.

In March, Abel oversaw the repurchase of 33 Class A shares (BRKA) and 431,462 Class B shares (BRKB), totaling roughly $234 million. Since Berkshire's board amended the rules governing buybacks in July 2018 to make it easier for then-CEO Warren Buffett to repurchase shares, he and Abel have spent $78 billion buying back their company's stock.

For companies with steady or growing net income, significant share repurchase programs can increase earnings per share (EPS) over time. The positive impact on EPS can make shares of a public company more fundamentally attractive to value-focused investors.

Additionally, buybacks can steadily lower a company's outstanding share count, thereby incrementally increasing the ownership stakes of long-term investors. This was a key point for Berkshire's now-former boss, as he wanted to incentivize his company's shareholders to hold for the long term.

Lastly, what better way to demonstrate to Wall Street and investors that Buffett and Abel are confident in Berkshire Hathaway's future than to use $78 billion of the company's capital to effectively bet on themselves.

An Abel-run Berkshire will certainly feature changes -- but some things will remain the same.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.