Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B)
said today (Wednesday) it authorized the repurchase of $1.2 billion worth of Class A shares from "the estate of a longtime stockholder."
Berkshire Hathaway said it paid $131,000 a share for 9,200 shares.
At the same time, Berkshire Hathaway announced the board of directors had approved an increase in the price it is willing to pay for Berkshire shares from 110% of book value to 120%. Based on Berkshire Hathaway's book value per Class A share of $111,718 at the end of September, the company is now willing to pay up to $134,061 to repurchase shares.
Both Class A and Class B shares rallied this morning following a delayed open at the request of the company, pending news. In late-morning trading, both Class A shares and Class B shares were up by 2.4%.
The move surprised investors - but says a lot about what Buffett thinks of Berkshire's value.
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