Berkshire Hathaway Pauses Buybacks With Stock Near All-Time High

Berkshire Hathaway Inc. BRK has put a halt on its share buyback program.

What Happened: From February 10 to March 5, Berkshire Hathaway refrained from repurchasing any shares.

A report from Barron's, citing the company’s proxy statement released on Friday, confirmed that there were approximately 1.438 million shares outstanding as of March 5, indicating no buybacks during this period.

This comes as the company’s stock is nearing an all-time high, marking the longest period without buybacks since CEO Warren Buffett was granted extended repurchase authority in 2018.

Despite the absence of buybacks, Berkshire’s stock has continued to perform robustly, outpacing the S&P 500 this year.

Also Read: Here’s How Warren Buffett Made Billions From An Industry He Didn’t Understand

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Investors are drawn to the company’s diverse earnings base and defensive appeal, bolstered by over $300 billion in cash and equivalents.

According to Benzinga Pro, on Friday, Berkshire's Class A shares increased by 1.9% to $771,250, nearing a record high, while Class B shares rose 2% to $514.60.

The stock has seen a gain of approximately 13% this year, significantly surpassing the S&P 500's 4% decline.

Why It Matters: Analysts estimate that Berkshire's intrinsic value is close to its current stock price. If the share price remains high, the company may continue to abstain from stock buybacks throughout the year, as per Barron’s.

This could potentially impact the company’s future financial strategies and investor sentiment.

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