In the video below, Fool analyst Matt Koppenheffer dissects the recent buyback of shares by Warren Buffett's Berkshire Hathaway.

Reports say the $1.2 billion buyback has all been from shares from one longtime Berkshire shareholder.

This is not the ideal way for Berkshire to be buying back shares. Koppenheffer would rather see the company going on the open market and buying back the traditional way.

Investors should also consider the reasons behind the buyback. Koppenheffer thinks that Buffett has become more bullish on his own company because he does not see many other good opportunities right now for Berkshire to use its cash.

Overall, though, he sees the buyback as a good move that will benefit investors. Berkshire remains a great collection of business and a good investment with great management. 


Fool contributor Matt Koppenheffer owns shares of Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services recommend Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.