Billionaire Investor Warren Buffett's Stocked Purchases Amounting to $78 Billion Over the Past 7 Years Are Suffering, Sparking the Query: Has the Wisdom of Omaha's Oracle Faltered?
Warren Buffett Halts Berkshire Hathaway Share Repurchases
Warren Buffett, the billionaire CEO of Berkshire Hathaway, has not repurchased shares of his own company since July 2024. This decision comes as the stock's valuation no longer meets Buffett's strict criteria of being "intrinsically cheap" or a good value.
Over the past six years, Berkshire Hathaway has repurchased nearly $78 billion worth of its shares. However, since mid-2024, Buffett has refrained from repurchasing due to the stock price climbing to between 60% and 80% above its book value, a range Buffett judges too expensive for buybacks.
Buffett and Berkshire's board set buyback guidelines in 2018, allowing purchases only when there is at least $30 billion in liquid assets and Buffett believes the stock is undervalued. Despite having discretion and sufficient cash, Buffett has chosen to wait, aligning with his value-oriented philosophy.
This approach is not new for Buffett. He has been a net-seller of equities for 10 consecutive quarters and his cold-turkey approach with his own company's stock isn't unique. Prior to July 2018, Buffett and Charlie Munger were only allowed to repurchase shares of Berkshire Hathaway stock if it fell to or below 120% of book value.
Buffett's strategy of waiting for valuations to make sense has proven to be a substantial moneymaker in the past. Over six decades, Buffett has overseen a 5,868,186% cumulative return in Berkshire Hathaway's Class A shares.
The Buffett Indicator, a measure of market-cap-to-GDP ratio, hit a record high of 212.23% as of July 22, suggesting that value isn't just hard to come by in this market -- it's practically nonexistent. There is no timeline as to when valuations will fall back into Buffett's wheelhouse.
Meanwhile, Berkshire Hathaway is one of only 11 public companies worldwide to ever hit a $1 trillion valuation. Despite this success, Buffett is sticking to his roots and purposefully sitting on his hands until valuations make sense.
In addition, Buffett has been selling some holdings, especially in the financial sector, indicating a more cautious approach to equity investments overall. This aligns with his value-oriented philosophy, only buying or repurchasing when valuations justify the investment, consistent with his long-term strategy to seek "good deals" rather than simply deploying capital.
For those interested, the detailed breakdown of how much Buffett spent on his favorite stock can be found on the final page of each quarterly report. However, Buffett's favorite stock to buy is not listed in Berkshire Hathaway's quarterly Form 13F filings.
In a recent development, Buffett and his top advisors purchased shares of gaming giant Activision Blizzard in 2022 as a short-term arbitrage opportunity given Microsoft's offer to acquire the company. This move suggests that Buffett may be looking for opportunities outside of Berkshire Hathaway's stock while he waits for more favourable valuations.
[1] Berkshire Hathaway Annual Report 2024 [2] CNBC, "Warren Buffett's Berkshire Hathaway sells Bank of America shares, doubles down on Apple," 2025. [3] The Wall Street Journal, "Warren Buffett's Berkshire Hathaway Halts Share Repurchases," 2024.
- Despite the record high of Berkshire Hathaway's valuation, Warren Buffett, adhering to his value-oriented philosophy, has refrained from investing in his own company's shares, as the stock price is deemed too expensive by his strict criteria.
- Warren Buffett's decision to halt share repurchases and sell some holdings, particularly in the financial sector, signifies a more cautious approach towards finance and equity investments, as he waits for favorable valuations to make strategic investments.
- In a shift from the everyday investment practice, Buffett and his advisors have shown interest in purchasing shares of gaming giant Activision Blizzard, signaling that they may be looking for investment opportunities outside of Berkshire Hathaway's stock while they wait for more favorable business environments.
