Berkshire Hathaway (BRKa.N), has boosted the rate at which it is repurchasing its own shares, which is an indication that longtime Chairman Warren Buffett views them to be undervalued and a suitable location to spend surplus cash.
From the beginning of this year until March 6, Berkshire repurchased the equivalent of 3,808 Class A shares, according to the proxy statement that the company submitted on Friday.
The amount of money spent ranged from around $2.2 billion to $2.4 billion, depending on the dates of the buybacks. Following the 12th of February, about three quarters of the repurchases were carried out.
The fourth quarter of the previous year saw Berkshire repurchase $2.2 billion of its own stock, while the entire year of 2023 saw the company repurchase $9.2 billion of its own stock.
Buybacks reached their highest point in 2021, when they amounted to a total of $27 billion. Buffett, who is 93 years old, has been the CEO of Berkshire, which is headquartered in Omaha, Nebraska, since 1965.
He is responsible for overseeing buybacks and other significant decisions about capital allocation. Buffett is able to employ a portion of the conglomerate's cash and equivalents, which come to a total of $167.6 billion at the end of the year, through the use of repurchases.
Berkshire has stated that it will continue to keep a cash buffer of thirty billion dollars and that "financial strength and redundant liquidity, opens new tab will always be of paramount importance."
As of Friday, the share price of Berkshire has increased by 14% so far this year, which is around twice as much as the gain for the Standard & Poor's 500
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