Summary
Berkshire Hathaway Inc. announced a significant update regarding its share repurchase program on September 26, 2011. The Board of Directors has authorized the company to repurchase both Class A and Class B shares. The key provision of this authorization is that repurchases will only occur if the price is at or below a 10% premium over the then-current book value per share. This policy change provides flexibility for Berkshire Hathaway to return capital to shareholders through share buybacks when the market price is deemed attractive relative to intrinsic value, as indicated by book value. The program is authorized to continue indefinitely, though it does not commit the company to any specific repurchase amount or volume, allowing for a strategic and opportunistic approach to capital allocation.
Key Highlights
- 1Berkshire Hathaway's Board of Directors authorized a share repurchase program for Class A and Class B shares.
- 2Repurchases are capped at a price no higher than a 10% premium over the then-current book value per share.
- 3The repurchase program is authorized to continue indefinitely.
- 4The program does not obligate Berkshire to repurchase any specific dollar amount or number of shares.
- 5This action provides a clear framework for opportunistic share buybacks, aligning with Berkshire's value investing principles.
- 6The announcement was made via a press release dated September 26, 2011, attached as an exhibit.