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.
