Berkshire Hathaway has resumed share repurchases for the first time in 22 months, marking Greg Abel's first major capital allocation decision since succeeding Warren Buffett as CEO. The conglomerate began buying back shares on Wednesday, signaling confidence that the stock trades below its intrinsic value despite holding a record cash pile of nearly $400 billion.

The $1.1 trillion company, which spans insurance, railroad, and industrial businesses, typically discloses buybacks only in quarterly financial statements. Abel's decision to announce the repurchases upfront demonstrates transparency during the leadership transition. In his inaugural letter to shareholders, the 63-year-old emphasized share repurchases as an "important capital allocation option" alongside investments and acquisitions.

Abel's approach differs from Buffett's historical buyback criteria, which typically triggered purchases when shares traded between 1.4 and 1.5 times book value. With Berkshire's stock recently trading at 1.5 times book value, investors are watching closely to see how Abel's judgment about intrinsic value compares to the simple price-to-book metric. The buyback authorization came after Berkshire amended its policy last year, allowing Abel to initiate repurchases after consulting Buffett.