NEW YORK (MarketWatch) -- Berkshire Hathaway Inc., BRK.B +5.91% the conglomerate run by investor Warren Buffett, said on Monday that it will buy back some of its own shares at up to a 10% premium over book value at the time of purchase. "In the opinion of our Board and management, the underlying businesses of Berkshire are worth considerably more than this amount, though any such estimate is necessarily imprecise," the company said in a press release. Berkshire said that it will fund the buyback with cash on hand. "Repurchases will not be made if they would reduce Berkshire's consolidated cash equivalent holdings below $20 billion. Financial strength and redundant liquidity will always be of paramount importance at Berkshire," the firm concluded.
(Source: Marketwatch.com)
(Source: Marketwatch.com)
Warren buffett has stated many times do not buy Berkshire Hathaway. I suppose his reasoning was that if something is very very popular even if its warren buffetts holding company its a good idea to exercise caution.
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