Berkshire Hathaway disclosed in a Wednesday SEC filing that it has begun repurchasing its Class A and Class B common stock.
The company executes these buybacks under an existing policy that permits repurchases when the stock price sits below its intrinsic value.
This move follows the recent leadership transition from Warren Buffett to Greg Abel.
The initiation of repurchases signals a continuation of the company’s capital return strategy. Management’s action suggests a belief that the shares are currently undervalued.
Market conditions and other factors will determine the specific timing and total amount of the buybacks.