Warren Buffett’s share buybacks fail to prevent berkshire from sliding

By: |
Published: January 4, 2019 8:05:02 AM

The closing price has spent nearly a month below $312,806 -- the average price Buffett paid for repurchases in August. The Class A shares fell to $287,000 on Thursday, the lowest since February.

Warren Buffett’s share buybacks fail to prevent berkshire from sliding

Warren Buffett’s revamped stock-repurchase policy can’t seem to keep Berkshire Hathaway Inc. from falling.

Berkshire’s stock fell the most in 11 months on Thursday as some of its biggest equity holdings, Apple Inc. and Delta Air Lines Inc., cut revenue forecasts. The closing price has spent nearly a month below $312,806 — the average price Buffett paid for repurchases in August. The Class A shares fell to $287,000 on Thursday, the lowest since February.

Berkshire’s board loosened the buyback policy last year, allowing Buffett and Vice Chairman Charles Munger to repurchase the shares whenever they felt prices fell below intrinsic value. They had previously been limited to buying back stock only when the price was less than a 20 percent premium to book value.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Analyst Corner: Asian Paints target price at rs 1,530 per share
2Shriram Transport Finance plans to raise up to Rs 700 crore via NCDs
3Analyst Corner: Maintain ADD on CIL with revised fair value of Rs 290