economy
Berkshire Hathaway resumed buybacks. But the shares aren't particularly cheap
A narrower discount could limit how much stock Berkshire will repurchase and, in turn, how much support buybacks will give the shares.
TL;DR
- Berkshire Hathaway resumed stock buybacks on March 4, marking the first repurchase since May 2024.
- The company repurchased the equivalent of 309 Class A shares, totaling approximately $226 million.
- Shares were trading at roughly a 5% discount to intrinsic value, a narrower gap than during previous buyback programs.
- This smaller discount may limit the amount of stock repurchased and the support provided to the shares.
- New CEO Greg Abel consulted with Warren Buffett on the decision, citing valuation and timing.
- Management chose to highlight this buyback's start due to the recent leadership transition with Abel taking over from Buffett.