Berkshire Hathaway has resumed stock buybacks for the first time in nearly two years, spending approximately $234 million in March 2026, according to recent regulatory filings. This marks a significant shift after the company halted buybacks in 2024, allowing cash to accumulate on its balance sheet. While the recent buyback represents only 0.02% of Berkshire’s $1 trillion market cap, it signals a potential undervaluation of the stock, which traded as low as 1.45 times book value in early March.
The resumption of buybacks suggests that CEO Greg Abel and Chairman Warren Buffett see the current price as a substantial discount to intrinsic value. Notably, Berkshire’s price-to-book ratio has fallen even further to about 1.44x, indicating that the stock may be even cheaper now than during the recent buyback. This could present an enticing opportunity for long-term investors, especially as the stock remains over 10% below its peak prior to Buffett’s retirement announcement.
Investors should monitor any further buyback activity in the upcoming quarters, as it may provide insight into the company’s valuation strategy and market positioning.
Source: fool.com