Berkshire Hathaway repurchased $4.5 billion of its own stock in the second quarter, its largest buyback since 2021 and a signal that new CEO Greg Abel sees the shares as undervalued. The buyback, which reduced outstanding shares by less than half a percent, came as Berkshire also invested heavily in other stocks, distinguishing it from recent quarters when buybacks were a default use of cash. With a record $397.4 billion in cash and Treasuries at the start of the quarter, Abel has been seeking ways to deploy capital. While the buyback is aggressive by Berkshire's standards, it is not a dramatic declaration, but it does suggest that Abel and Chairman Warren Buffett believe the stock is cheap relative to its intrinsic value. Investors should do their own analysis, but the buyback offers a reason to examine Berkshire's current valuation.
Berkshire Hathaway IncBerkshire repurchased $4.5 billion of its own stock, signaling management sees shares as undervalued.
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