8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Sep 26, 2011)

Filed September 26, 2011For Securities:BRK-BBRK-A

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.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that Berkshire Hathaway's Board of Directors has authorized a new share repurchase program for its Class A and Class B shares.

Berkshire Hathaway will only repurchase its shares at prices that are no higher than a 10% premium over the then-current book value of the shares.

While the program is authorized to continue indefinitely, it does not commit Berkshire Hathaway to repurchase any specific dollar amount or number of Class A or Class B shares. The repurchases are opportunistic and subject to the price condition.

By repurchasing shares when they are trading below or at a small premium to book value, Berkshire Hathaway can effectively return capital to shareholders and potentially increase the per-share book value and earnings for remaining shareholders, signaling management's confidence in the company's intrinsic value.