Berkshire Hathaway Inc. [S: brka] on Tuesday said it approved the amendment of its stock buyback program to give its Chairman and Chief Executive Warren Buffett and Vice Chairman Charlie Munger more flexibility and power in deciding when to repurchase Berkshire shares. The previous program only allowed buybacks when the price for the stock did not exceed 20% premium of the book value. With the change, Buffett or Munger can decide to buy back shares when they deem that the price is below the stock’s intrinsic value, on a conservative basis. “The current policy whereby share repurchases will not be made if they would reduce the value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bills holdings below $20 billion will continue,” said the company in a statement. It also said it will not buy back shares until it has released its second-quarter earnings on Aug. 3. Berkshire’s Class B shares rose 1.2% in Tuesday’s extended session after closing down 0.8% in regular trade.
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