Tag: buybacks

(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.

(BRK.A), (BRK.B)

Berkshire Hathaway, the multinational conglomerate headed by the legendary investor Warren Buffett, has continued its trend of buying back its own stock in the first quarter of 2023. The company committed $4.4 billion to the repurchase of shares of both Class A and Class B common stock. This represents an increase from the $2.6 billion that was spent on stock buybacks in the fourth quarter of 2022.

This move by Berkshire is a continuation of the company’s buyback program that started in 2011. In 2022, Berkshire Hathaway bought back a total of $7.9 billion of its stock. The recent purchase of $4.4 billion shows the company’s continued confidence in its own business prospects.

Warren Buffett has long been a proponent of share buybacks, and he defended Berkshire’s buybacks in his recent Chairman’s Letter. He wrote, “The math isn’t complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices.”

Buffett has also been critical of those who oppose share buybacks. He has referred to them as “economic illiterates” or “silver-tongued demagogues” who do not understand the benefits of the practice. He believes that buybacks can be a useful tool in returning value to shareholders and that they should be conducted when the company’s shares are undervalued.

Berkshire Hathaway’s commitment to share buybacks reflects its confidence in its own business prospects and its belief that the company’s shares are undervalued. For investors, this move may signal a positive outlook for Berkshire Hathaway’s future performance.

© 2023 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.

(BRK.A), (BRK.B)

Warren Buffett continues to see Berkshire Hathaway stock as a good value and use of Berkshire’s profits. Approximately $1.05 billion was used to repurchase Berkshire shares during the third quarter bringing the nine month total to approximately $5.25 billion.

The buybacks come as Berkshire posted $7,761 billion in operating earnings for the third quarter, up from $6,466 billion for the same quarter in 2021.

At September 30, 2022, insurance float (the net liabilities we assume under insurance contracts) was approximately $150 billion, an increase of $3 billion since yearend 2021.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

* Includes certain businesses in which Berkshire has between a 20% and 50% ownership interest.

© 2022 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.

(BRK.A), (BRK.B)

Berkshire Hathaway has continued its stock buybacks in the first quarter of 2022, reporting that “Approximately $3.2 billion was used to purchase shares of Class A and Class B common stock during the first quarter of 2022. On March 31, 2022, there were 1,470,875 Class A equivalent shares outstanding.”

The buybacks have slowed considerably from 2021’s pace, reflecting Berkshire’s rising share price. In the fourth quarter of 2021, Berkshire repurchased $6.9 billion in combined Class A and Class B common stock.

Berkshire’s $27 billion in buybacks for 2021 was a record for the company.

At the Berkshire Hathaway annual meeting, Buffett revealed that he didn’t repurchase any shares in April 2022.

© 2022 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.