Greg Abel, Warren Buffett's successor as CEO of Berkshire Hathaway, spent $4.5 billion repurchasing company stock last quarter and has already bought at least $3.3 billion more in July, signaling confidence in the stock's value. The buybacks mark a significant step-up from the first quarter, when repurchases totaled only a few hundred million dollars, and follow a six-quarter pause under Buffett. Berkshire's quarterly report shows shares outstanding fell about 0.32% from the end of June to the end of July, with the company's market capitalization above $1.05 trillion. Abel also ended a 13-quarter streak of net stock sales by buying $23.5 billion in equities last quarter, including a large position in Alphabet, which is now Berkshire's third-largest holding. The repurchases are permitted only when management deems the stock undervalued, and with a price-to-book ratio around 1.45, the stock appears fairly valued despite recent gains.
Alphabet Inc Class CBerkshire bought a large position in Alphabet, making it the third-largest holding, indicating confidence.
NVIDIA Corporation
Berkshire Hathaway IncBerkshire repurchased $4.5B in Q2 and $3.3B in July, signaling management's view of undervaluation.
