Berkshire Hathaway spends $1.2 billion on share buyback

, The Associated Press

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Warren Buffett

Warren Buffett's Berkshire Hathaway says it paid $1.2 billion to repurchase 9,200 Class A shares from the estate of a longtime shareholder.

Berkshire announced the purchase Wednesday morning and said it was modifying its stock buyback program.

Buffett's company paid $131,000 per share for the Class A stock, a small premium over Tuesday's closing price of $130,831.

Buffett announced his first stock buyback plan in 2011. At the time, Berkshire's board authorized him to buy back stock anytime it was selling for less than 110 percent of its book value.

Now Berkshire's board has authorized stock repurchases at prices up to 120 percent of the book value. That suggests Buffett believes the stock is worth significantly more than that.

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