Berkshire Hathaway made a record $ 9 billion repurchase in the third quarter

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Warren Buffett’s Berkshire Hathaway holding giant completed a record $ 9 billion share repurchase in the third quarter. This brings the amount of Berkshire’s repurchases since the beginning of 2020 to $ 15.7 billion.

Read more in Calcalist:

Even after this big expense, Berkshire’s cash remains full and plentiful – as of the end of the quarter with no less than $ 145.7 billion.

The holding company ended the third quarter with an 82% jump in net profit compared to the same quarter, to $ 30.137 billion. The group’s investment earnings were $ 24.8 billion, compared to $ 8.7 billion in the same quarter last year (a 185% jump) and $ 31 billion in the previous quarter (Monday 2020).

Warren Buffett Photo: Bloomberg

In a letter to shareholders earlier this year, Buffett referred to the group’s repurchase policy:

Berkshire will only repurchase the shares if: 1. Charlie and I believe they are being sold for less than what they are worth (‘Charlie’ is Charlie Manger, Berkshire’s closing chairman, Calcalist); 2. The company, after completing the self-purchase, is left with a decent amount in its coffers. Over time, we want Berkshire’s stock to shrink. “If the ‘value-for-value’ discount widens, we will probably become more aggressive in self-purchase moves – we will not support the stock at any level,” Buffett wrote.

At the annual general meeting held in May, Buffett further said on this matter: “When the conditions are right, it will be understood that we will make a repurchase of shares and there is no defect in this that does not exist in the distribution of dividends.”

Berkshire shares have retreated 7.7% since the beginning of 2020 – the company closed on Friday in New York with a market value of $ 499 billion.



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