Berkshire Hathaway Class B Stock Soars After News of Warren Buffett's Stock Buyback

B shares of Berkshire Hathaway Inc. (BRK.B) surged in after-hours trading on Tuesday after the company announced that it had repurchased $1.2 billion worth of its own stock.

The buyback announcement came as a surprise to many investors, as Berkshire Hathaway has traditionally been a seller of its own stock. However, the company's recent cash hoard has grown to a record $144 billion, giving it the financial flexibility to make large stock buybacks.

In a statement, Berkshire Hathaway CEO Warren Buffett said that the company's board of directors had authorized the buyback because it believes that the company's stock is undervalued. Buffett also said that he believes that the stock market is currently "overvalued" and that Berkshire Hathaway is "taking advantage of the opportunity to buy back its own stock at a discount."

Many analysts believe that the recent rise in Berkshire Hathaway's stock price is a sign that the broader market is preparing for a correction. If the market does correct, Berkshire Hathaway is likely to be one of the few companies that can weather the storm. The company has a strong balance sheet, a large cash hoard, and a portfolio of businesses that are well-positioned to perform in a down market.