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Tags: warren buffett | apple | berkshire | investing

Warren Buffett Says Berkshire Has Bought Back 'a Little' Stock

Warren Buffett Says Berkshire Has Bought Back 'a Little' Stock
(Getty Images)

Thursday, 30 August 2018 11:25 AM EDT

Warren Buffett is using his newfound freedom on share buybacks.

Berkshire Hathaway Inc. has repurchased “a little” of its stock in recent months, Buffett, 88, said Thursday in an interview with CNBC.

Berkshire’s board opened up another pathway for capital deployment in July, when it gave Buffett and Vice Chairman Charles Munger more leeway to repurchase shares. Previously, the company couldn’t pay more than a 20 percent premium over book value for its shares. The new program eliminates that cap, and Berkshire’s shares now trade at about a 45 percent premium to book value. Buffett has used book value as a “rough” measure of the company’s intrinsic value, even though he says it understates the value.

Buffett, Berkshire’s chairman and chief executive officer, is contending with the challenge of deploying a $111 billion cash pile that keeps growing. He lamented in a February letter to shareholders that prices for decent businesses hit all-time highs last year, creating a hurdle for dealmaking. That was aggravated by the amount of “extraordinarily” cheap debt that’s available, he said.

Buffett has repurchased shares before, agreeing in 2012 to buy back some stock from the estate of a longtime shareholder.

© Copyright 2024 Bloomberg News. All rights reserved.


StreetTalk
Warren Buffett is using his newfound freedom on share buybacks. Berkshire Hathaway Inc. has repurchased "a little" of its stock in recent months, Buffett, 88, said Thursday in an interview with CNBC.
warren buffett, apple, berkshire, investing
195
2018-25-30
Thursday, 30 August 2018 11:25 AM
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