Berkshire has eliminated 10% of outstanding shares as Buffett values the enduring power of buybacks

Berkshire Hathaway Inc Nyheter

Berkshire has eliminated 10% of outstanding shares as Buffett values the enduring power of buybacks
Stock MarketsInvestment StrategyWarren Buffett
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Over the past five and a half years, Berkshire has repurchased nearly $75 billion worth of its stock, eliminating 10% of shares outstanding, one analyst said.

Berkshire Hathaway has reduced a sizable chuck of share count through buybacks in recent years as Warren Buffett views the repurchase program as an effective way to reward long-term shareholders. Over the past five and a half years , the conglomerate has repurchased nearly $75 billion worth of its common stock, eliminating more than 10% of the company's total shares outstanding, according to Greggory Warren, Berkshire analyst at Morningstar.

"If you're repurchasing shares above a rationally calculated intrinsic value, you are harming your shareholders, just as if you issue shares beneath that figure, you are harming your shareholders," Buffett once said in 1996. Hoping for an occasional big opportunity Berkshire spent $2.6 billion in the first quarter of 2024 to buy back its own common stock on the open market, up from $2.2 billion in the fourth quarter of 2023.

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