Key Points
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Buffett recently gave the go-ahead for Berkshire Hathaway to begin repurchasing its shares after a long hiatus.
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He favors Berkshire stock again because its share price is below the intrinsic value.
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Other investors may want to consider buying Berkshire for the same reasons Buffett likes the stock.
Warren Buffett was a net seller of stocks for 13 consecutive quarters before stepping down as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) at the end of 2025. Don’t think for a second that the legendary investor has retired, though. New Berkshire CEO Greg Abel recently disclosed that Buffett still comes into the office “five days a week.”
Abel didn’t discuss the details of what Buffett is up to these days. However, we can know one thing for certain: There’s one stock Buffett is clearly buying right now. And it’s none other than Berkshire Hathaway itself.
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Warren Buffett.
Image source: The Motley Fool.
Why Buffett favors Berkshire stock again
Berkshire Hathaway submitted a regulatory filing to the U.S. Securities and Exchange Commission (SEC) on March 4, 2026, disclosing that it began repurchasing shares. Abel confirmed the stock buybacks in an interview with CNBC the same day.
Buffett was 100% on board with the decision to resume share repurchases after a long hiatus. Abel told CNBC that he “consulted with Warren relative to the value and the timing” of the buybacks. Berkshire’s stock repurchase program, adopted by the company’s board of directors last year, stipulates that the CEO must consult with the Chairman of the Board (Buffett).
The fact that Buffett favors buying Berkshire stock again raises an obvious question: Why? Fortunately, the answer to that question is easy. Berkshire will only repurchase its shares when Abel and Buffett both believe that the share price is below the stock’s intrinsic value from a conservative viewpoint.
At first glance, the stock buyback might be surprising. Berkshire’s share price is actually higher now than it was during much of the period when Buffett didn’t repurchase shares. What has changed along with Berkshire’s share price, though, are external dynamics. With oil prices soaring, the economy weakening, and inflation potentially resurging, Abel and Buffett obviously see Berkshire Hathaway as the best buying opportunity around.
Abel’s first big move (but blessed by Buffett)
This stock buyback is Abel’s first big move as Berkshire’s new CEO. As we’ve discussed, though, the decision was blessed by Buffett before even the first share was repurchased.
Buffett left Abel with plenty of cash to use. Berkshire’s cash, cash equivalents, and short-term investments totaled $373 billion at the end of 2025, with much of it in U.S. Treasuries. This amount exceeds the market cap of 477 of the companies in the S&P 500 (SNPINDEX: ^GSPC).
Abel, like Buffett, would prefer to buy stocks when they’re attractively valued. In his first letter to Berkshire Hathaway shareholders, he wrote, “We will always aim for ownership of productive businesses over U.S. Treasuries.”
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The kinds of opportunities Abel is looking for also align well with Buffett’s investment philosophy. Abel wrote in the shareholder letter that Berkshire’s top capital allocation priority is to “invest in businesses that we thoroughly understand, with durable advantages and long-term economic prospects.” This statement describes Berkshire Hathaway to a T.
Follow the leader?
Should you follow the smart money and also buy Berkshire Hathaway shares? I think so.
Berkshire Hathaway remains one of the most reliable stocks on the market. It has a long history of delivering market-beating returns. The conglomerate’s subsidiaries and equity holdings offer a level of diversification comparable to that of many exchange-traded funds (ETFs). The company’s aforementioned cash stockpile gives it a tremendous amount of “dry powder” to use in aggressively buying more stocks at a discount if the stock market pulls back.
It’s not a good idea to buy a stock just because a famous investor is doing so. However, buying a stock for the same reasons a famous investor would is another story altogether.
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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.