Buffet Buys Back A Whopping $5.1 Billion Dollars In Berkshire Hathaway Stock


Berkshire Hathaway spent $5.1 Billion on stock buy backs and still holds $140 Billion in cash on hand.

On Saturday Berkshire Hathaway confirmed it bought back a record $5.1 billion worth of its own stock.  The company repurchased more than $4.6 billion of its Class B stock and about $486.6 million in Class A shares.

This marks the biggest buy back in a single quarter for Buffett, nearly double the $2.2 billion the conglomerate bought back in the final quarter of 2019. Even though the company made record buybacks last quarter, Berkshire’s cash on hand stands at more than $140 billion. (Berkshire Class A and Class B shares plunged more than 19% in the first quarter and declined of more than 1% in the second quarter.)

Operating profits fell 10% during the second quarter, dropping to $5.51 billion from $6.14 billion in the same period last year. Berkshire’s investments in public markets gained $34.5 billion in the quarter. (overall second-quarter net earnings were $26.3 billion) lion a year ago. Apple, Berkshire’s biggest common stock holding, has nearly doubled since March 23. JPMorgan Chase is up more than 27% over that time period and Amazon has popped more than 66%.

“The risks and uncertainties resulting from the pandemic that may affect our future earnings, cash flows and financial condition include the nature and duration of the curtailment or closure of our various facilities and the long-term effect on the demand for our products and services.”

The company also said wholly owned insurance giant Geico will likely see its underwriting results “negatively affected” by the pandemic for the rest of 2020 and into next year. 

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Economics, Finance and Investing