Bill Ackman predicts dividends for Berkshire Hathaway after Buffett
- Bill Ackman discussed potential changes to Berkshire Hathaway's capital returns during a CNBC interview.
- Greg Abel will become the new CEO of Berkshire Hathaway at the end of the year, following Warren Buffett's retirement.
- Ackman believes Berkshire may begin paying dividends and buy back stock after Buffett's tenure, but the management team still has to prove its capability.
On May 5, 2025, Bill Ackman, CEO of Pershing Square, speculated that Berkshire Hathaway could enhance its capital returns to shareholders following the conclusion of Warren Buffett's long-standing role as CEO. This speculation arose during an appearance on CNBC's "Squawk Box,” where Ackman expressed confidence in the future management of the company. Additionally, Ackman highlighted that under Buffett’s leadership, Berkshire has not distributed dividends nor undertaken stock repurchases since the second quarter of 2024. With Buffett's imminent retirement, Ackman suggested that the new CEO, Greg Abel, might pursue more aggressive capital returns, including the potential to initiate dividends along with increased stock buybacks. He acknowledged Abel's capabilities, stating that while Abel is a strong operator and capital allocator, it remains to be seen if he can replicate Buffett's success in acquiring businesses. Ackman's comments coincided with the announcement of a deal to increase Pershing Square's investment in the Howard Hughes Corporation, which Ackman hopes to mold into a Berkshire-style entity. The discussion reflects the ongoing evaluation of Berkshire's strategic direction and shareholder benefits as it transitions to new leadership at a time when the company boasts considerable cash reserves.