Warren Buffett's Rule for Stock Buybacks Is Very Specific. Berkshire Spent a Record $9.6 Billion on Them Last Quarter.

Berkshire Hathaway repurchased a record $9.6 billion of its own stock in Q3 2026, and the shares have since run past the level where management was buying.

BRK.B now trades near $570, about 12% above the $507 average Berkshire paid per Class B share in September. The buyback covered BRK.A and BRK.B, and the September price is the clearest marker of where management saw undervaluation.

The author argues the current price is less compelling than the entry point Berkshire used. At $570, the stock trades at 26x operating earnings, a richer multiple than the one on offer while the company was actively buying. Interpretation: the buyback is a floor signal, not a green light at any price. A 12% move above the September average means the discount Berkshire captured has narrowed.

The size matters. A $9.6 billion repurchase in a single quarter is a record, which tells traders management put real capital behind its valuation view when shares sat near $507. The 26x multiple at $570 shifts the risk-reward for anyone chasing the post-buyback move.