Berkshire Hathaway Doubles Buybacks as Earnings Drop
Berkshire Hathaway spent big to buy back its own shares during the third quarter despite falling profits.
Warren Buffett sees big value in his own company. Berkshire Hathaway announced on Saturday that it bought back more of its own shares. The move shows strong faith from leadership.
The firm more than doubled its share repurchases in the third quarter. At the same time, overall profits dropped. Operating profit took a hit across several business units.
Buffett sits on a massive pile of cash. When market prices cool, he steps in to purchase stock. He buys Berkshire shares when he believes the price sits below the true value of the business.
Everyday investors can learn from this move. Tough quarters happen to the best companies. Smart leaders look past short dips and invest in long growth.
Source: CNBC
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