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Buffett's designated successor Greg Abel boosts Berkshire stake

Published 10/03/2022, 06:34 PM
Updated 10/03/2022, 06:36 PM
© Reuters. FILE PHOTO: Gregory Abel, the CEO of Berkshire Hathaway Energy and who is designated to succeed Warren Buffett as Berkshire CEO, walks through the crowd at the first in-person annual meeting since 2019 of Berkshire Hathaway Inc in Omaha, Nebraska, U.S. Ap

© Reuters. FILE PHOTO: Gregory Abel, the CEO of Berkshire Hathaway Energy and who is designated to succeed Warren Buffett as Berkshire CEO, walks through the crowd at the first in-person annual meeting since 2019 of Berkshire Hathaway Inc in Omaha, Nebraska, U.S. Ap

By Jonathan Stempel

(Reuters) - Greg Abel, who is next in line to succeed Warren Buffett as Berkshire Hathaway (NYSE:BRKa) Inc's chief executive, spent more than $68 million on the conglomerate's shares last week, after selling his stake in the company's Berkshire Hathaway Energy unit for $870 million.

In four regulatory filings, Abel, 60, said that on Sept. 29 he purchased 168 Class A shares of Berkshire, each costing more than $405,000, on behalf of a family trust.

Abel had previously owned five Class A shares and 2,363 Class B shares, according to regulatory filings.

Some analysts and shareholders had suggested that Abel should have a greater stake, reflecting his roles as a Berkshire vice chairman and Buffett's likely successor as chief executive. A Class B share is worth about 1/1,500th of a Class A share.

The purchases were made three months after Abel sold his 1% stake in Berkshire's energy unit, for which the Omaha, Nebraska-based parent took a $362 million charge to capital.

Abel joined Berkshire Hathaway Energy, then known as MidAmerican Energy, in 1992, eight years before Berkshire took it over.

© Reuters. FILE PHOTO: Gregory Abel, the CEO of Berkshire Hathaway Energy and who is designated to succeed Warren Buffett as Berkshire CEO, walks through the crowd at the first in-person annual meeting since 2019 of Berkshire Hathaway Inc in Omaha, Nebraska, U.S. April 29, 2022.  REUTERS/Scott Morgan

He became MidAmerican's chief in 2008, and Berkshire's vice chairman overseeing its dozens of non-insurance businesses in 2018.

Abel was awarded $19 million in compensation for each of the last three years, with Buffett setting his pay. Ajit Jain, a vice chairman who oversees Berkshire's insurance businesses, was awarded the same amounts.

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