Well-Timed Buy From Buffett’s Successor ‘Sends Positive Valuation Message’ Says Silverman

Ben Silverman, Director of Research at VerityData, spoke with Bloomberg and Barron’s after public filings revealed that Greg Abel, next in line to succeed Warren Buffett as CEO of Berkshire Hathaway Inc., had acquired about $68 million of stock late last month.

“Abel displayed an opportunistic tack, buying just two days after the stock hit an eighteen-month low and likely just ahead of the quarterly trading window for Berkshire insiders closed,” Silverman told Barron’s.

“Abel’s buy helps align him more closely with Berkshire shareholders as he prepares to, at some point, take the reins of the company,” said Silverman to Bloomberg. “It’s an important move by Abel because a nearly $70 million stock purchase signals his seriousness, and the timing of the buy — on weakness, as the quarter is closing — sends a positive valuation message.”