Berkshire Hathaway's stock is now cheap enough for Greg Abel to buy back billions — and that changes its investment case

Berkshire Hathaway's stock is now cheap enough for Greg Abel to buy back billions — and that changes its investment case. The company's price-to-book ratio has declined to around 1.4 as the stock price moved sideways while operating earnings and investment assets continued growing. At that level, the stock is now within a range that permits repurchases under the company's buyback policy. Abel authorized a $226 million share repurchase on March 4, signaling a reactivation of the buyback program. The company could repurchase billions more shares if the stock remains at or below 1.4 times book value. Warren Buffett halted share buybacks in mid-2024 when the stock traded above 1.5 times book value, a level he considered expensive. He had long insisted that all repurchases be price-dependent: sensible at a discount, foolish at a premium. The board’s policy allows buybacks when the stock trades below intrinsic value and the company maintains ample liquidity — a threshold now met. Abel inherited a $650 billion asset portfolio and a large cash position. Berkshire's operating businesses generated $44.5 billion in earnings in 2025, providing strong internal capital generation to fund buybacks without compromising financial strength. Repurchasing shares at a discount to intrinsic value increases per-share intrinsic value for remaining shareholders, enhancing long-term returns.