Berkshire Hathaway Is Buying Back Stock Again. Here’s What That Signal Means for Investors.


You might keep tabs on all the stocks Berkshire Hathaway (BRKA +0.16%) (BRKB +0.14%) buys and sells simply to copy those trades for your own portfolio. What if, however, the stock Berkshire is buying is its own?

Well, that’s what happened in March 2026. For the first time since the first half of 2024, Berkshire Hathaway repurchased $234 million worth of its own stock.

A person seated at a desk in front of a laptop is thinking.

Image source: Getty Images.

It’s not a lot. It’s only a fraction of the conglomerate’s current war chest of nearly $400 billion in idle cash, in fact. But it’s significant to interested investors all the same, just because it happened at all. As the company noted in a disclosure filed with the Securities and Exchange Commission early that month, “Berkshire Hathaway Inc.’s long-standing common stock repurchase policy permits us to repurchase shares of our Class A and Class B Common Stock at any time we believe the repurchase price is below our intrinsic value, conservatively determined.”

In other words, current CEO Greg Abel and his management team believe Berkshire stock’s lackluster performance since this time last year leaves it well undervalued now.

Berkshire Hathaway Stock Quote

Today’s Change

(0.14%) $0.65

Current Price

$475.73

The analyst community doesn’t disagree, by the way. Although the crowd following this ticker is fairly small, the consensus price target of $527.97 for the company’s B shares is markedly above the stock’s current price of around $475. Most of these analysts also consider Berkshire a buy right now.

No, a stake in this collection of value stocks and slow-moving cash-cow companies won’t provide you with the exposure to the artificial intelligence revolution that most investors seem to want right now. That’s the point. It’s something else, even if being something else has undermined its performance of late. Given enough time, everything comes full circle. The time to get in is now, simply because Berkshire Hathaway shares are trading at a discount.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *