No. of Recommendations: 2
" Some Berkshire investors might like to see more insider purchases, especially from Abel. The Berkshire CEO is believed to be a billionaire with most of his wealth stemming from his sale of a 1% stake in Berkshire Hathaway Energy, where he had been CEO before coming to the parent company in 2018, for $870 million in cash in 2022.
That was a generous price—almost double the valuation that Berkshire paid to the estate of former Berkshire director Walter Scott for an 8% stake in Berkshire Hathaway Energy in 2024.
Abel owns 249 Berkshire Class A shares worth around $175 million and Class B shares worth about $1 million.
That Berkshire stake could be less than 20% of his net worth. Given his wealth, he probably could own a lot more Berkshire stock and a purchase at current levels likely would be a bullish sign for the stock. The shares now trade around 1.4 times Berkshire’s March 31 book value and closer to 1.3 times a projected June 30 figure—below the average valuation of recent years.
Berkshire’s proxy states that Berkshire directors like Abel should hold a “significant investment in Berkshire shares relative to their resources.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups."
