By Benjamin Dressing Earlier this month, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) stirred up the market with a big announcement – it’s changing its share repurchase policy to be more “flexible.”
The framework previously allowed for the buyback of shares at prices “no higher than a 20% premium to book value.”
This is not the first time Berkshire has updated this policy. When it announced its first repurchase plan with Buffett at the helm in 2011, the program limited the premium to just 10% over book value. With the current price hovering around a 40% premium to book value, a buyback now would be double …read more
