2 Reasons Berkshire Hathaway Could Start Buying Back Shares Soon
Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), the conglomerate led by billionaire investor Warren Buffett, typically does not use the traditional methods of returning capital to shareholders: dividends and share buybacks.
Although Buffett mentioned the possibility of a dividend at Berkshire's shareholder meeting, the company has not declared a cash dividend since 1967, and it's fair to say that management isn't too keen on the idea. On the other hand, buybacks have been a part of Berkshire's strategy in the past, and they could certainly happen again, given the right circumstances. In a nutshell, management looks at buybacks as an opportunity to potentially buy back the company's assets for less than their intrinsic value.
With that in mind, here are two reasons Berkshire could decide to start buying back shares in the near future.
Source: Fool.com
