Berkshire Hathaway (BRK.A.US, BRK.B.US) restarts stock repurchase plan. CEO Abel pledges to invest all of his compensation into company stock.

Berkshire Hathaway (BRK.A.US, BRK.B.US) CEO Abel stated that during his tenure, he will use all of his after-tax compensation to purchase company stock, further strengthening alignment with shareholder interests. According to the latest disclosed regulatory documents, Abel has spent approximately $15.3 million this week to increase his holdings of Berkshire stock. He mentioned in an interview that after the company announces its annual performance each year, he will continue to make similar purchases, with the expected cumulative amount reaching "hundreds of millions of dollars" throughout his career. "It is crucial to maintain absolute alignment of interests with our shareholders, partners, and owners," Abel said on Thursday. "I already hold some company stock, but my goal is to continue demonstrating alignment with shareholder interests through actions." Meanwhile, Berkshire also restarted its stock buyback program on Wednesday. Abel stated that the management concluded after evaluation that the "intrinsic value" of the company's stock is higher than the current market trading price, leading to the decision to repurchase shares. After this announcement, Berkshire's stock price rose by approximately 2% in early trading on Thursday in New York. Earlier this week, Berkshire's stock price was under pressure. The company's fourth-quarter performance report released last Saturday showed a 30% year-on-year decline in operating profit, with a significant 54% drop in profit from insurance underwriting business being a major drag. Investors have been closely monitoring Abel's stance on buybacks as Berkshire had not conducted stock buybacks for six consecutive quarters. In the annual letter to shareholders released last week, Abel reiterated that the company will continue to adhere to its existing shareholder return policy, largely ruling out the possibility of distributing dividends. "Our principle has always been that if the company can turn $1 into more than $1 in value, we will choose to retain that capital for further investment, which has always been our criterion for judgment," Abel said. "If we can't meet that standard, only then will we consider paying dividends." Abel also emphasized that even with the restart of the buyback program, it will not affect Berkshire's ability to utilize its massive cash reserves to seek other investment opportunities. Currently, the company's cash holdings amount to $373 billion. He stated that the company has multiple options for capital allocation, including buying back its own stock, acquiring entire companies, or investing in publicly traded stock assets, and these decisions can progress simultaneously. "We will consider whether to repurchase company stock, evaluate whether to acquire entire companies, and consider whether to buy shares of publicly traded companies," Abel said. "With our current capital size, these decisions can be made independently. Therefore, when we buy back stock, it will not affect the progression of other investment opportunities."