I can’t get past the fact that he effectively cashed out of his position when he sold his BHE stake. Sure he bought a ton of stock, but he took out more than he put in. Bothers me.


First, it's kind of a mathematical impossibility that he should buy back more than (or even almost the same as) he cashed out. Taxes, you know...

Second, I too kinda wished that Abel had worked out a stock-for-stock trade, but understand that "bought with his own money" is more in line with the company culture than "management got rich through stock grants". He did of course pay a very large cost for this virtue-signalling.

Third, Berkshire MUST gradually back away from the promise, that a prudent investor can put 99% of her eggs in this one basket. Perhaps the company SHOULD take a bit more risk in the future; NONE of us retaining so concentrated a portfolio forever.


We don't know anything else about Abel's personal finances or plans. Maybe he gave the rest of the proceeds away...

Berkshire Hathaway FAQ

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