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On September 26, 2011 Berkshire (NYSE:BRK.A) (NYSE:BRK.B) announced it may repurchase shares. Let's look at the performance to date.

September 26, 2011

  • S&P 500 $1,162.95
  • Berkshire class A $108,449
  • Berkshire class B $72.09

May 4, 2012

  • S&P 500 $1,369.10
  • Berkshire class A $121,950
  • Berkshire class B $80.94

Change in value (price only)

  • S&P 500 17.7%
  • Berkshire class A 12.4%
  • Berkshire class B 12.3%

The total return of the S&P 500 (NYSEARCA:SPY) would be higher including dividends.

The share repurchase announcement was discussed in this Seeking Alpha article by Whitney Tilson.

Since the September 2011 share repurchase announcement the performance of Berkshire has lagged the S&P 500 by over 500 basis points, excluding dividends. However a 12% plus return is a decent return. Time will tell if the return of Berkshire will catch up with the S&P 500.

Price source data: Yahoo Finance

Source: Berkshire Performance Since The Share Repurchase Announcement