(BRK.A), (BRK.B)
Berkshire Hathaway continued its stock buybacks in the second quarter of 2024, but at greatly reduced amount than in the first quarter of 2024.
Berkshire Hathaway, the renowned conglomerate led by Warren Buffett, used approximately $345 million of its cash to repurchase Berkshire shares during the second quarter of 2024, bringing the six-month total to $2.9 billion.
On June 30, 2024, there were 1,436,696 Class A equivalent shares outstanding, a reduction of 555 Class A equivalent shares outstanding from March 31, 2024.
Buffett has a clear and conservative approach to share repurchases. Berkshire’s repurchase program allows for the repurchase of Class A and Class B shares, but only when the stock price is below Berkshire’s intrinsic value, as determined by Buffett. There is no obligation to repurchase a minimum number of shares, nor is there a cap on the maximum amount of shares that can be repurchased. However, Buffett ensures that repurchases do not reduce Berkshire’s holdings of cash, cash equivalents, and U.S. Treasury Bills below $30 billion. This emphasis on financial strength and liquidity is paramount for Berkshire.
© 2024 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.