Berkshire shares climb after Buffett is empowered to buy back more stock
Updated : July 18, 2018 11:38 PM IST
Class A shares of Berkshire gained $10,305, or 3.6 percent, to $298,805 in morning trading, while Class B shares rose $7.47, or 3.9 percent, to $197.88 on the New York Stock Exchange.
Berkshire's old buyback policy prohibited buybacks when the stock price exceeded 1.2 times book value per share, or assets minus liabilities.
With the change, Buffett can spend more of Berkshire's cash and equivalents, which totaled $108.6 billion as of March 31, after having for 2-1/2 years been unable to complete what he calls "elephant" sized acquisitions of whole companies.
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