Warren Buffett’s Berkshire Hathaway has over US$325 billion in cash on hand. But Buffett is in no rush to spend that on his own company’s stock.
Berkshire Hathaway (BRK.A) did not buy back any of its own shares in the third quarter, ending a six-year-long streak of stock buybacks, according to Securities and Exchange Commission filings.
Berkshire Hathaway was a net seller of stocks across its portfolio that quarter and grew its cash-on-hand to record amounts. Berkshire Hathaway’s actions signal to investors that its stock might be overvalued, Cathy Seifert, an analyst at CFRA Research, told CNN.
Buffett will repurchase shares when he thinks the price is “below Berkshire’s intrinsic value, conservatively determined,” according to Berkshire Hathaway’s regulatory filings.
In other words, Buffett will only buy back his own stock when he believes it is a bargain.
“That Berkshire Hathaway did not repurchase any shares would lead most people to …