Berkshire successor isn’t following Buffett’s lead rob_cyran
Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire’s annual shareholder meeting in Omaha, Nebraska, U.S., May 4, 2019. REUTERS/Scott Morgan
NEW YORK, Oct 4 - Warren Buffett has long been a proponent of bosses eating their own cooking. His salary for running $618 billion Berkshire Hathaway has been $100,000 annually for decades, but he owns about $100 billion of the company’s stock. Designated successor Greg Abel, who oversees the company’s non-insurance operations, received $19 million in compensation annually. A recent $68 million purchase of shares doesn’t quite live up to the Buffett standard.
To be fair, Abel isn’t – and may never be – quite as rich as Buffett. In June, however, Berkshire bought Abel’s stake in its energy subsidiary forin cash. A Buffett-like move might have been to plough all that cash he netted back into the company’s shares. Instead, Abel has spent just a sliver. Berkshire stock is about 25% below its 2022 high. It’s possible that Abel could even get a bargain. Indeedhas been using Berkshire’s cash to buy back shares – some 9% outstanding since the end of 2019, or $52 billion as of earlier this year. Perhaps Abel should follow Buffett’s lead, in more ways than one.
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