Core Insights - Berkshire Hathaway's Class A shares have declined by 10% since early May, raising questions about CEO Warren Buffett's buying strategy [1][4] - Buffett's investment strategy has historically involved significant stock repurchases, with nearly $78 billion spent on buybacks since July 2018 [15] - Despite a recent correction in Berkshire's stock price, Buffett is unlikely to repurchase shares unless the price-to-book value premium decreases to around 50% [20][21] Investment Activity - Buffett has been a net seller of stocks since October 2022, with a cumulative net selling total of $174.4 billion through March 31, 2025 [5][6] - In the most recent quarter, Berkshire purchased $3.183 billion in equity securities while selling $4.677 billion, resulting in a net selling of $1.494 billion [6] - Despite the net selling trend, Buffett has selectively added to positions, such as purchasing shares of Domino's Pizza for three consecutive quarters [7] Stock Repurchase Strategy - The board amended Berkshire's share-repurchase program in July 2018, allowing Buffett to buy back shares without a set ceiling as long as cash reserves remain above $30 billion [14] - Since the amendment, Berkshire's stock has consistently traded at a premium to book value, with the current premium fluctuating between 60% and 80% [20] - Buffett has not repurchased any shares in the last three quarters, breaking a streak of 24 consecutive quarters of buybacks [19]
Warren Buffett Has Put Almost $78 Billion to Work in His Favorite Stock Over 7 Years, and It Recently Fell 10% -- Is the Oracle of Omaha a Buyer?