Warren Buffett says there are no plans for a buyback of Berkshire Hathaway stock right now, although he did not rule out the possibility in the future.
He did, however, set a very high bar.
The stock price would have to be "demonstrably below" a conservative estimate of the company's intrinsic value.
That implies Buffett does not think the stock is clearly undervalued at its current level of $92,511 a share. It's down about 30 percent over the last twelve months.He also said that shareholders would be informed in advance if the company did decide to go ahead with a buyback.
Buffett says he think many companies make a mistake when they buy back shares, by paying too much. He pledged that Berkshire would never make that particular mistake, although it might err by not buying when the price is low.
Current Berkshire stock prices:
Class B: [US;BRK.B 3043.95 -21.05 (-0.69%) ]
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