Berkshire Hathaway Share Repurchases Doubled in Q4

(BRK.A), (BRK.B)

Berkshire Hathaway accelerated its stock buybacks in the fourth quarter of 2023. The repurchases doubled the $1.1 billion in the third quarter. The company reported that “approximately $2.2 billion was used to repurchase Berkshire shares during the fourth quarter of 2023 bringing the total for the year to approximately $9.2 billion. On December 31, 2023 there were 1,441,483 Class A equivalent shares outstanding.”

Berkshire’s stock buyback initiative allows the company to purchase its Class A and Class B shares whenever Warren Buffett, Berkshire’s Chairman and CEO, deems the repurchase price to be below the company’s conservatively estimated intrinsic value. These repurchases can occur through open market transactions or privately negotiated deals.

The conglomerate reported strong operating earnings in Q4 of $8.481 billion as compared to $6.625 billion in Q4 2022. Operating earnings for the full year were a robust $37.350 billion as compared to $30.853 in the full year of 2022.

Berkshire’s cash reserves has continued to grow, reaching $167.6 billion.

© 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.

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