Warren Buffett may have bought back more than $5 billion in Berkshire Hathaway stock in recent weeks

Warren Buffett may have bought back more than $5 billion in Berkshire Hathaway stock in recent weeks

Warren Buffett may have bought back over $ 5 billion in Berkshire Hathaway shares in the past few weeks 2020″ data-id=”19618″ data-prev=”https://coinnews.design/this-historically-accurate-signal-proposed-a-13000-bitcoin-rally-in-the-third-quarter/”> 1.9k VIEWS Warren Buffett may have bought back over $ 5 billion in Berkshire Hathaway shares in the past few weeks. The famous investor announced his share in Berkshire last week in an application, suggesting that the number of shares outstanding shrank by approximately 1.2% between April 23 and July 7. “This implies relatively strong buyback activity,” said James Shanahan, an analyst at Edward Jones & Co. Reuters said . Buffett may have spent between $ 4.9 billion and $ 5.9 billion on buybacks during the period, or approximately tripled the $ 1.7 billion it spent in the first quarter. You can find more stories on the Business Insider homepage .
Warren Buffett may have bought back more than $ 5 billion in Berkshire Hathaway shares in the past few weeks – three times the value of his first quarter buybacks – to capitalize on his company’s huge cash reserves and depressed stock price.
The famous Berkshire investor and CEO owns 248,734 class A shares in his company and 10,188 class B shares in his company after he donated approximately $ 2.9 billion to Berkshire shares for charity last week, according to an SEC report .
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Each class A share can be converted into 1,500 class B shares. Therefore, at the last count, Buffett held the equivalent of 248,741 Class A shares.
The filing found that Buffett’s stake accounted for 15.54% of Berkshire’s total shares outstanding, representing slightly more than 1.6 million Class A shares.
The total number of Class A and B shares outstanding on April 23 was equal to 1.62 million Class A shares, Berkshire said in its last quarterly filing .
As a result, the number of Berkshire shares outstanding between April 23 and July 7 looks like the equivalent of 19,400 Class A shares or 1.2%.
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Assuming that this reflects share buybacks, Buffett has likely spent between $ 4.9 and $ 5.9 billion buying them based on the range of Berkshire Class A stock prices over that period.
“This implies relatively strong buyback activity,” said James Shanahan, analyst at Edward Jones & Co. Reuters said . He suggested that Berkshire may have bought back $ 5.3 billion of shares based on the average share price over the period.
If so, it would mean that Buffett more than tripled its buybacks compared to the $ 1.7 billion stock he bought back in the first quarter.
Buffett, who has been trumpeting the value of buybacks for years, may have decided to spend part of Berkshire’s $ 137 billion in cash on his company’s shares because they are relatively cheap.
Berkshire shares fell about 20% this year, compared to a 2% drop in the S&P 500. Berkshire’s market capitalization is also less than 1.2 times net assets.
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In the meantime, Berkshire shareholders may have sold their shares to Buffett because they are frustrated with the underperformance this year.
“Berkshire’s steadfast quality shareholders don’t sell, so we’re seeing a voluntary purge of short-term, lower-quality shareholders,” said Lawrence Cunningham, a law professor at George Washington University and author of several books on Buffett, to Reuters.

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