BRK - Berkshire to buy back stock, Keep $20 billion cash

[Junto]

Buy back initiated this morning: Company Release http://bit.ly/qoMO7A

 

Omaha, NE (NYSE: BRK.A; BRK.B)—Our Board of Directors has authorized Berkshire

Hathaway to repurchase Class A and Class B shares of Berkshire at prices no higher than a 10%

premium over the then-current book value of the shares...Berkshire plans to use cash on hand to fund repurchases, and repurchases will not be made if

they would reduce Berkshire’s consolidated cash equivalent holdings below $20 billion. Financial strength and redundant liquidity will always be of paramount importance at Berkshire.

[Parsad]

They did the exact same thing in 2000...the last time the stock was so cheap.  I expect it to outperform the S&P500 for the next year now!  Cheers!