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Berkshire Hathaway 2025 Annual Shareholder Letter by Greg Abel
Berkshire Hathaway (BRK) recently released its 2025 Letter to Shareholders (also see full 2025 Annual Report). Usually, this is when I read Warren Buffett’s teachings and share my personal takeaways (2024, 2023, 2022, etc). Sadly, the time has come when the new CEO, Greg Abel, must take over this duty.
In the letter, Abel does a nice job of listing all the often-unique strengths of Berkshire Hathaway and Warren Buffett. Longtime shareholders will be familiar with these attributes, but I suppose it’s good that he repeats them himself.
- Corporate culture built around honesty, transparency, and straightforward communication with shareholders.
- Decentralized structure where subsidiary CEOs operate autonomously with minimal headquarters oversight.
- Strong culture of trust: managers are expected to run their businesses independently and ethically.
- Long-term ownership mindset focused on decades, not quarters.
- Preference for owning high-quality businesses with durable competitive advantages.
- Disciplined capital allocation, including a willingness to hold large cash reserves until attractive opportunities appear.
- Insurance operations provide “float,” which acts as low-cost capital for investments.
- Limited use of leverage and avoidance of excessive financial risk.
- Preference for permanent ownership rather than buying businesses to sell later.
As noticed by @TCII_Blog, Buffett is explicitly listed as someone that will be consulted on any share buybacks in the full annual report:
Berkshire’s common stock repurchase program permits Berkshire to repurchase its Class A and Class B shares at prices below Berkshire’s intrinsic value, as conservatively determined by Berkshire’s Chief Executive Officer after consultation with the Chairman of the Board. We are not committed to a minimum or subject to a maximum repurchase amount. We will not repurchase our stock if it reduces our consolidated cash, cash equivalents and U.S. Treasury Bills holdings to below $30 billion. Financial strength and redundant liquidity will always be of paramount importance at Berkshire. There were no share repurchases in 2025.
No buybacks in 2025, but on 3/5/26, Greg Abel announced that they have started buying back shares again (WSJ gift article). We can only assume that means both he and Buffett agree that BRKB very recently traded below their “estimate of intrinsic value, conservatively determined.”
In addition, Abel also announced that he will be using his entire after-tax annual salary as CEO (currently ~$15 million after-tax/$25 million gross) to purchase Berkshire Hathaway shares. In other words, he will have “skin in the game”.
Abel, who succeeded Buffett as CEO in January, also said in a regulatory filing that he personally bought about $15 million in Berkshire shares and plans to purchase more annually.
“I’m committed to doing this every year,” Abel said during an interview televised on CNBC. “My entire salary, as long as I’m CEO. We’ll file our 10-K, I’ll write the letter, and after the 48-hour cooling-off period, I’ll purchase.”
I’m not a billionaire like Abel, but starting with a $50 bonus from the now-gone ShareBuilder brokerage site in the early 2000s, I’ve built up a nice little position in Berkshire Hathaway. Whenever there is a new brokerage bonus, I prefer to buy BRKB shares because the long-term return will likely at least match the S&P 500, and it never distributes dividends. This means no 1099-DIV forms to deal with at the end of the year, ha. I also never sell the shares, only move them around for ACAT transfer bonuses or they get merged into other brokers, so no 1099-B. This all adds up when you open as many new brokerage accounts as I do…
As a 20+ year shareholder now, I feel that Abel has been saying and doing all the right things so far. Charlie Munger famously said “Greg will keep the culture!”, and so I wish him the best and am holding all my shares for now. In fact, I think it’s quite possible that Berkshire will perform even better price-wise in the next decade as Abel takes a more active role in areas that he likes. Buffett had his strengths and preferences, and Abel has his own.
However, nobody knows what will actually happen, and people can change over time. Look at how many billionaires out there have been corrupted by power and money. I’ll miss the Buffett wisdom, but I’ll still be watching (and hopefully learning) from Berkshire’s activities since I have my own “skin in the game”.