Buffett's Berkshire amends stock buyback policy

(Reuters) - Berkshire Hathaway Inc on Tuesday amended its stock buyback policy, a change that could help billionaire chairman Warren Buffett deploy more of the conglomerate's cash.

The new policy lets Buffett and Vice Chairman Charlie Munger authorise buybacks when they believe the repurchase price is "below Berkshire's intrinsic value, conservatively determined."

Berkshire's former policy said repurchase prices would not exceed 1.2 times book value per share.

Its class A shares closed Tuesday at $288,500, roughly 1.37 times its book value per share of $211,184 as of March 31.

Berkshire will not buy back stock under the new policy until it releases second-quarter results, scheduled for August 3.

 

(Reporting by Jonathan Stempel in New York, Editing by Rosalba O'Brien)