Invite ye felawes and frendes desirous in gold to enter the gates of Shrewd'm, for they will thanke ye later.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 5
“Berkshire Hathaway repurchased about $225 million of stock on March 4, the day it resumed its buyback program after a hiatus of almost two years, based on information in the company’s 2026 proxy statement filed late Friday.
Berkshire disclosed on March 5 that it had resumed stock buybacks on March 4 for the first time since May 2024, and CEO Greg Abel discussed the resumption in a CNBC interview on March 5.
The Berkshire proxy gives a share count as of the close of business on March 4 and a comparison with the share count on Dec. 31 showed that the company repurchased 339 Class A equivalent shares on March 4, Barron’s calculates. The proxy doesn’t indicate the mix of class A and Class B shares that were bought that day.”
No. of Recommendations: 1
225MM per day, if the volume allows and price is in range, is a decent pace.
No. of Recommendations: 27
Berkshire likely bought a similar amount of stock or more the following week given its share count. Buybacks of $200-$300 million a day have been done by Berkshire. That seems a daily dollar amount Berkshire is comfortable with.
Berkshire’s optionality here is phenomenal. Assuming it’s stock price doesn’t runaway long term—it COULD, if it chose, be positioned to buyback $50 Billion of stock a year for the next 5 years…reducing its share count by 25 to 30%.
That’s $200 million of buybacks every single day of the year…52 weeks of the year. Not a problem. And a huge cash pile left after 5 years. Nice option in your back pocket…
In THEORY it could do this…and not reduce its net cash pile in that time given its cash generation.
OTOH, more preferably, Berkshire stands ready to pounce on game changing large private or public purchases that could build the foundation for a new generation of growth.
Never felt more optimistic about Berkshire. Warren made sure it would be this way for his successor.
No. of Recommendations: 5
<<Berkshire’s optionality here is phenomenal. Assuming it’s stock price doesn’t runaway long term—it COULD, if it chose, be positioned to buyback $50 Billion of stock a year for the next 5 years…reducing its share count by 25 to 30%.<<
Nice to see one day after this post, Andrew Bary at Barons speculates same and coincidentally plugs in the exact same theoretical number :)
No. of Recommendations: 1
Upon reflection, I have decided "me too".
If they are going to tell us when the stock is a bargain, I will believe them.
Actually I probably have the data I need to analyze how their repurchase decisions have done in the past. Obviously since the stock has gone up over time, the answer is probably good, but it will be interesting to see if I can tell HOW good.
R:
