On Wednesday, Berkshire Hathaway announced that it has bought back 9,200 shares of its Class A common stock from the estate of an unidentified long-term shareholder.
Berkshire paid $131,000 per share for the stock, and was authorized to make this repurchase -- valued at $1.2 billion in total -- by its board of directors. In conjunction with this repurchase, the board also raised the valuation limit on how much it would pay for share repurchases to 1.2 times book value.
Going forward, Berkshire said it may purchase additional shares in the market or through direct offerings at this new, higher valuation.
Berkshire's Class A shares currently sell for just under 1.2 times book. As of this writing, shares are trading 2.2% higher, at $133,796 apiece, on the news.
The article Berkshire Hathaway's $1.2 Billion Buyback originally appeared on Fool.com.
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