Berkshire Hathaway shares climbed after the conglomerate posted stronger-than-expected quarterly earnings and unveiled a substantial share buyback, even as prominent investor Michael Burry signaled unease about the company’s new leadership era under Chief Executive Greg Abel.
The results reflect the first full stretch of Abel’s tenure at the helm, with the CEO beginning to deploy Berkshire’s vast cash reserves after years of accumulation. Investors welcomed the combination of solid operating performance and a repurchase program, sending the stock higher in the wake of the report.
The buyback marks a notable shift in strategy. Berkshire had largely paused repurchases in recent quarters, and the renewed activity signals confidence in the company’s valuation as the transition from Warren Buffett to Abel takes hold. Buffett continues to serve as chairman, retaining oversight while Abel manages day-to-day operations and capital allocation.
Not everyone is convinced. Burry, the investor best known for his bet against the U.S. housing market ahead of the 2008 financial crisis, expressed reservations about Berkshire’s direction, citing reasons for concern about the conglomerate’s evolving profile under new management.
Burry’s skepticism stands in contrast to the broadly positive market reaction. The results follow a period in which Berkshire’s profit had shown strong momentum, and the shares recently reached some of their highest levels since Abel assumed the top job.
The company’s earnings strength spanned its diverse portfolio, which includes insurance, railroads, energy, and consumer businesses. The renewed buyback and cash deployment come as observers watch closely for signs of how Abel will differ from his predecessor in steering one of the world’s most closely followed investment vehicles.
The leadership handoff has been a defining storyline for Berkshire. When the succession plan was confirmed, the arrangement kept Buffett involved as chairman while positioning Abel to shape the conglomerate’s next chapter, a structure that has drawn intense scrutiny from shareholders and analysts alike, as detailed in how the new CEO has started putting the cash pile to work.
Berkshire has long held one of the largest corporate cash positions in the market, a war chest built up as Buffett waited for attractive opportunities. Abel’s willingness to spend—whether on buybacks, acquisitions, or investments—will be a key measure of his approach in the months ahead.
For now, the market’s response suggests investors are largely reassured by the early results. Whether Burry’s caution proves prescient will depend on how the new era unfolds, and how Abel balances growth ambitions against the disciplined value philosophy that made Berkshire a household name.