Berkshire Hathaway (NYSE:BRKa) has stepped up its rate of repurchasing its shares, signaling that Chairman Warren Buffett perceives them as undervalued and a favorable avenue for utilizing excess cash.
In its proxy filing released on Friday, Berkshire disclosed that it bought back the equivalent of 3,808 Class A shares this year through March 6, expending approximately $2.2 billion to $2.4 billion based on the timing of the buybacks. Notably, nearly three-quarters of the repurchases occurred after February 12.
Last year, Berkshire repurchased $2.2 billion of its stock in the fourth quarter and a total of $9.2 billion throughout 2023. Its highest buyback year was 2021, amounting to $27 billion.
Warren Buffett, aged 93, has been at the helm of Berkshire, headquartered in Omaha, Nebraska, since 1965. He oversees buybacks and other significant capital allocation decisions.
These repurchases aid Buffett in deploying a portion of the conglomerate’s cash and equivalents, which stood at $167.6 billion at the end of last year. Berkshire has pledged to uphold a $30 billion cash buffer, emphasizing the enduring importance of financial robustness and surplus liquidity.
As of Friday, Berkshire’s share price had risen by 14% this year, approximately double the increase in the Standard & Poor’s 500 (.SPX).
Featured Image: Megapixl
Author Faith Yakubu 
