A company’s shares show positive or negative response when it releases its earnings reports, and soon Berkshire Hathaway is also going to release its Q4 earnings report. According to reports Warren Buffett who is known as Oracle of Omaha will give investors of Berkshire Hathaway a bright look at where the company is heading. One thing which every Berkshires is waiting to see the amount of buy back shares which Warren Buffett and Charlie Munger has acquired. In financial market buying back own company’s stock indicates lots of things because when a company is in a strong position, it opts for buyback option because indirectly it means the company is in sound financial position.
Now according to Wall Street experts amount of buy back shares is below 2 billion dollars but if number exceeds then Berkshires shares will lift up significantly. However, it could also mean that Warren Buffett and Charlie Munger thinks shares of Berkshire Hathaway’s are cheap. Currently, Berkshire Hathaway is valued at more than $500 billion, and if the company decided to buy back shares worth of $2 billion, then that won’t be considered as one of the significant buybacks. Because many banks recently did repurchase of more than 5 percent after paying a right amount of dividend. However, some experts think Berkshires might get shocked because company must’ve repurchased shares worth of more than 7-8 billion dollars.
Warren Buffet is famous for his value investing technique. If he and Charlie Munger decides to acquire that much amount of shares of their own company, then it will increase Berkshire’s stock prices. So far in 2019 Berkshire’s stock has gone up by only 1% as compared to the S&P 500’s 11.3% rise. Some investors are not satisfied with company’s performance in 2019, and they might want to see good results in upcoming months.