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Warren Buffett’s $77.8 Billion Buyback Pause
Warren Buffett, CEO of Berkshire Hathaway (NYSE: BRK.A, BRK.B), has authorized a record $77.8 billion in stock buybacks since 2018 but has not initiated any buybacks over the past four quarters. Berkshire currently holds $344 billion in cash, raising concerns about Buffett’s reluctance to make moves amid high valuations and an upcoming leadership transition.
Berkshire’s stock is trading at a price-to-sales ratio of 2.5, significantly above its 10-year average of 2, suggesting Buffett views current valuations as excessive. Additionally, with plans for his successor, Greg Abel, to take over by 2025, Buffett may be cautious about depleting cash reserves that Abel could utilize for future acquisitions.
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