Last month, Warren Buffett made a splash in the market by announcing that his conglomerate, Berkshire Hathaway, was changing its policy on stock buybacks.
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Before the announcement, Berkshire Hathaway's policy on stock buybacks was that the company would buy back shares if they traded below 1.2 times book value. However, under the terms of the new settlement, Buffett and Vice Chairman Charlie Munger can now make repurchases whenever they both believe the price "is below Berkshire’s intrinsic value, conservatively determined."
Investors and analysts had been anticipating this change for some time. In his 2017 letter...
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