A successor to Warren Buffet has invested $68 million into the company, signaling he's confident in the company and thinks its shares are cheap.
The boss of the company's non-insurance operations bought 168 Class A shares at a weighted average cost of $400,000 per share. As of Friday's close, his family trust held 173 "A" shares worth $72 million, along with 2,400 "B" shares worth $650,000.
As he prepares to take the reins from the 92-year-old Buffett, he has a lot more "skin in the game" with his recent purchases. He still has a long way to go before he is able to keep most of his fortune in stock.
A material stake in the conglomerate was rumored to be built by Abel after he was revealed as the first choice for the next CEO by Buffet. The chairman of the company, who has earned $19 million in compensation over the past three years, only owned $3 million of the company's stock before he bought it.
The expectations went up after the second quarter of this year.
The "A" shares of the company fell to an 18-month low in September, giving the opportunity to buy them at a discount. The stock is still down from its March high.
Executives and shareholders should have their incentives aligned. He personally keeps virtually all of his net worth, as it shows his deep belief in his company, and ensures that he benefits when his investors benefit, and he loses when they don't.
Most of Charlie Munger's net worth is derived from 4,300 "A" shares of "B" stock.
By increasing his stake, he took a step towards matching the financial commitment of the two men. The next leader is a long way from being all in.
The ultimate investor is Warren Buffet.
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