**Meta:** Berkshire Hathaway’s stock buyback inactivity raises questions about valuation. Discover the latest insights.
**Content:**
### Berkshire Hathaway’s Stock Buyback Inactivity
**Who:** Warren Buffett, Chairman and CEO of Berkshire Hathaway
**What:** The company has not repurchased any stock since May 2024.
**When:** The last buyback occurred in May 2024, with no activity from February 10 to March 5, 2025.
**Where:** Omaha, Nebraska, USA
**Why:** Buffett does not consider the stock to be undervalued at current prices.
Berkshire Hathaway has entered a prolonged period without stock buybacks, marking the longest stretch of inactivity since Warren Buffett received expanded buyback authority in 2018. According to Barron’s calculations, the company did not repurchase any shares between February 10 and March 5, 2025, as indicated in the latest proxy statement.
#### Stock Performance and Valuation
– As of March 5, there were approximately 1.438 million shares outstanding, with Class B shares converted into an equivalent amount of Class A stock.
– Buffett has the authority to repurchase shares when he believes the repurchase price is below Berkshire’s intrinsic value, as conservatively determined in the annual report.
– The absence of buybacks suggests that Buffett, now 94, does not view the stock as cheap, especially as Berkshire’s stock continues to rise, outperforming the S&P 500 index significantly.
#### Financial Highlights
– Berkshire’s Class A shares increased by 1.9% to $771,250, nearing their recent record high.
– The stock has appreciated about 13% this year, while the S&P 500 has declined by 4%.
– Class B shares rose by 2% to $514.60.
– Fourth-quarter operating profits surged approximately 70%, driven by strong performance in the company’s insurance operations.
Despite the lack of buybacks, investor interest remains robust, with many analysts estimating the company’s intrinsic value to be close to the current stock price. The stock is currently trading at 1.7 times its year-end 2024 book value and about 25 times this year’s projected earnings, which is a premium compared to the S&P 500’s valuation of around 20 times.
### Conclusion
With Berkshire Hathaway’s stock price remaining high, it is likely that there will be few or no stock buybacks this year. How will this impact investor sentiment moving forward?
**FAQs:**
**Q: Why hasn’t Berkshire Hathaway repurchased any stock since May 2024?**
A: The lack of buybacks suggests that Warren Buffett does not view the stock as undervalued at its current price levels.
