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A share repurchase is when a company uses its own cash to buy its own stock off the open market because management believes the price is below what the business is actually worth.
Berkshire Hathaway (BRK.A, BRK.B) did that at sharply higher volume last quarter, spending $4.5 billion on buybacks in the second quarter after spending only $235 million in the first.
That acceleration is the clearest signal in Berkshire's weekend earnings release.
What the filing actually says Berkshire's written repurchase policy, quoted in its 10-Q filing, permits buybacks "any time that Berkshire's Chief Executive Officer, after consultation with the Chairman of the Board, believes that the repurchase price is below Berkshire's intrinsic value, conservatively determined." CEO Greg Abel and board chairman Warren Buffett are those two people.
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