Warren Buffett’s Berkshire Hathaway (NYSE: BRKa) (SA: BERK34) has spent about $1.3 billion on share repurchases in the past 6 weeks, according to the well-known investor Again, view your company’s stock as a bargain. According to Business Insider.
Berkshire Hathaway is spending about $52 billion to repurchase its shares during 2020 and 2021.
The number of Berkshire’s outstanding Class A shares fell 2,823 through April 20 on June 14, according to a company report this week. Buffett did not repurchase shares in April, while Berkshire’s Class A shares traded at an average of $465,000 in May and the first half of June, suggesting a payout of about $1.3 billion over six weeks.
Berkshire shifted the spending to buying shares in other companies. In the first quarter of this year, the company invested $41 billion in stock purchases on a net basis.
Berkshire’s Class A shares also rose to a record $544,000 at the end of March, but have since fallen 23 percent to below $419,000. Buffett may have given up buying them because of their high prices in April, then repurchased them in May and June. The stock fell a bit after that.
This approach is entirely in line with Buffett’s words:
“We never do anything that doesn’t add value to Berkshire Hathaway. We buy back shares only when it’s more attractive.”