Berkshire Hathaway, the company led by veteran investor Warren Buffett, spent around US$ 1.3 billion for share buybacks over the past six weeks.
This decision shows that the legendary investor has once again considered his company's stock cheap.
There were about 2,823 fewer Berkshire "A" shares outstanding on June 14 than April 20, according to an Insider tally, based on company filings this week.
Buffett did not repurchase any shares in April, and Berkshire's "A" shares traded at an average price of $465,000 during May and the first half of June, indicating an expenditure of about $1.3 billion in six weeks.
Buffett and his team may have resumed buybacks, but they have sharply slowed their pace.
Berkshire spent an estimated $52 billion on buybacks during 2020 and 2021. The share buyout is on track to cost under $5 billion in the first half of this year.
The slowdown in share buybacks largely reflects Berkshire shifting its spending to shares of other companies. It piled $41 billion into net equity purchases in the first quarter of this year.
Berkshire's "A" shares also jumped to a record $544,000 at the end of March, but have fallen 23% since then, to below $419,000.
Buffett probably balked at their high price tag in April, then bought it back in May and June after stocks slumped.
Buffett prides himself on being prudent with stock buybacks and repeated that approach during Berkshire's recent annual shareholders' meeting.
"We've never done anything that we didn't think would add value to Berkshire Hathaway," he said. "We only buy back shares when it's the most exciting thing."
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