Berkshire Hathaway starts Greg Abel era with cautious capital use despite strong Q1 earnings.

Berkshire Hathaway, under new CEO Greg Abel, reported 18% growth in operating earnings for Q1 and strong insurance results but chose to limit stock buybacks despite holding $380 billion in cash. The company trades at a 23x forward earnings multiple and 1.42x price-to-book ratio, reflecting disciplined management that favors cash accumulation over aggressive repurchases. This cautious approach suggests Berkshire stock may consolidate in the near term without major catalysts, but it positions long-term investors to benefit when the company eventually deploys its substantial cash reserves.