Warren Buffett's Giveaway Plan Implies $17 Billion of Berkshire Stock a Year. Greg Abel Bought Back $4.5 Billion Last Quarter.
Is Greg Abel trying to offset the shares Warren Buffett plans to give away?
Overview
The CEO is the person who runs a company on a day-to-day basis. However, technically speaking, the CEO reports to the board of directors. The board of directors, in turn, report to the shareholders who elected them. This chain of control is important to remember because it means that very large shareholders often have a huge say in how a company is managed.
That is the backdrop investors need when considering Warren Buffett's plans to give away around $17 billion per year in shares he owns in Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), the company he used to run as CEO. And it is also why Greg Abel's, Buffett's handpicked successor, repurchase of $4.5 billion in Berkshire Hathaway stock comes into the picture. But you probably shouldn't read too much into the timing of these two decisions. Here's what you need to know.
Image source: The Motley Fool.
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Originally published at www.fool.com.