Warren Buffett has been buying back Berkshire Hathaway shares extensively, outperforming the market

From Nasdaq: 2024-04-05 05:06:00

Warren Buffett, CEO of Berkshire Hathaway, has overseen an astounding 5,126,746% return on Class A shares since the mid-1960s, significantly outperforming the S&P 500. Berkshire’s 13F filings reveal Buffett’s investment decisions, with Apple as the top holding, representing 42% of invested assets. Even with the Apple stake, an even more favored stock in Berkshire Hathaway’s portfolio takes the lead.

Berkshire Hathaway’s share repurchase program under Warren Buffett’s leadership has been more extensive than buying stocks like Apple. Buffett’s preference for buying back Berkshire’s own shares has totaled more than $74 billion since 2018, compared to purchases of other stocks. Berkshire’s revised buyback criteria in 2018 allow Buffett to repurchase shares as long as there is a minimum reserve on the balance sheet and he believes the stock is undervalued.

With a record $167.6 billion in cash on hand, Warren Buffett has ample resources to continue buying back Berkshire Hathaway shares, increasing ownership stakes and EPS. The stock has not been identified as one of the top picks by analysts, but the company’s buyback strategy remains attractive to long-term investors seeking growth opportunities. Stock Advisor’s model has outperformed the S&P 500 since 2002.



Read more at Nasdaq: Forget Apple: Warren Buffett Has Spent Twice as Much Buying Shares of This Beloved Stock Since 2018