Berkshire Buyback Gives Buffett New Weapon to Face Market Slump
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Berkshire Hathaway Inc.’s Warren Buffett, who invested more than $15 billion in a month at the depths of the 2008 credit crunch, is now prepared to spend cash on his own firm in a market slump.
Berkshire announced a buyback program yesterday that gives Buffett, 81, the authority to make his first share repurchases in four decades. Buffett, the chief executive officer since 1970, in February touted Berkshire’s capacity to “play offense” in a crisis. He may have $20 billion at his disposal to buy shares if markets decline, said David Rolfe, chief investment officer of Berkshire investor Wedgewood Partners Inc.