Berkshire Hathaway Resumes Stock Buybacks for the First Time Since 2024: A Positive Signal for Shareholders
March 9, 2026 — By Bram Berkowitz, The Motley Fool
Berkshire Hathaway has officially restarted its share repurchase program for the first time since 2024, marking a notable development that has captured the attention of investors and analysts alike. This move signals the company’s confidence in the current valuation of its shares and offers an encouraging sign for shareholders.
Background on Berkshire Hathaway’s Buyback History
The strategy of share repurchases has long been favored by Warren Buffett, the legendary investor and former CEO of Berkshire Hathaway. Buffett preferred companies that actively bought back their own stock, and during his tenure, Berkshire typically repurchased shares when they were trading below what he and his team assessed as the company’s intrinsic value.
In recent years, however, Berkshire has been conservative with buybacks. In 2023, the company repurchased approximately $9 billion of its own stock, followed by around $3 billion in 2024. In 2025, no buybacks occurred, despite shares fluctuating in the market. This contrasted markedly with the period from 2020 to 2022, when Berkshire bought back about $60 billion worth of shares.
The resumption of buybacks in 2026 marks a shift in strategy, potentially indicating that Berkshire’s shares are once again priced attractively.
Why Share Repurchases Matter
When a company buys back its own shares, it reduces the number of outstanding shares available in the market. This means that each remaining share represents a larger ownership stake in the underlying business, often enhancing earnings per share and potentially boosting shareholder value over time.
However, the use of company capital to repurchase shares means less cash or equity is available for other corporate purposes. Because of this, investors closely monitor the price at which shares are repurchased. Buybacks are generally viewed more favorably when the stock is undervalued, as the company is effectively acquiring its shares at a discount.
Buffett and the Berkshire leadership adhere closely to this principle, only initiating share repurchases when the stock is trading below their assessment of intrinsic value. This disciplined approach underscores why the buyback restart is significant—it implies management now views Berkshire’s stock price as a compelling opportunity.
Valuation Context: Price to Tangible Book Value
One key metric Berkshire Hathaway uses—and that investors watch—is the price-to-tangible book value (TBV) ratio. TBV subtracts intangible assets such as goodwill from book value, offering a more conservative estimate of a company’s net asset value.
As of early 2026, Berkshire’s market price relative to its tangible book value has fallen below its five-year average, suggesting the stock may be undervalued compared to historical norms. This valuation metric aligns with the timing of the renewed buyback program and likely factored into management’s decision.
What This Means for Investors
The restart of Berkshire Hathaway’s buybacks sends a powerful message: management sees the stock as a bargain worth purchasing, signaling confidence in the company’s fundamental value. For shareholders, this is a green light that their investment may be undervalued, offering potential upside as the market recognizes Berkshire’s true worth.
While Warren Buffett is no longer CEO—the role is now held by Greg Abel—Berkshire’s disciplined approach to capital allocation appears to continue. Investors hoping for value-driven buybacks should view this development positively.
Looking Ahead
As Berkshire Hathaway moves forward with its repurchase plan, shareholders and market observers will be keen to monitor the pace and scale of buybacks. History has shown that Buffett’s buyback decisions were strategic and value-oriented, and early indications suggest the new leadership team is upholding this philosophy.
In conclusion, Berkshire Hathaway’s decision to repurchase shares again in 2026 after a pause since 2024 is a meaningful signal of confidence in the company’s valuation and outlook. For investors, this development is a noteworthy endorsement suggesting that now may be a favorable time to consider Berkshire Hathaway stock.
About the Author:
Bram Berkowitz is a stock market analyst with The Motley Fool, covering financials, technology, consumer goods, and macroeconomic trends. He holds FINRA Series 7 and 66 licenses and has experience in equity research and financial journalism.
Disclosure: The Motley Fool has positions in and recommends Berkshire Hathaway. The author holds no position in Berkshire Hathaway stock at the time of writing.