Charlie Munger says those criticizing share buybacks 'bonkers'

Berkshire Hathaway Vice Chairman Charlie Munger  defended Berkshire Hathaway’s record level of share buybacks on Saturday, saying the program is beneficial for existing shareholders, CNBC reports.

“If you’re repurchasing stock just to bull it higher, it’s deeply immoral,” Munger said. “But if you’re repurchasing stock because it’s a fair thing to do in the interest of existing shareholders, it’s a highly moral act, and the people that are criticizing it are bonkers.”

During the first quarter, the company bought back US$6.6 billion of Berkshire shares, after a record US$24.7 billion in buybacks in 2020. Thanks in part to the buybacks, Berkshire’s “B” shares have rallied more than 18 percent in 2021 to a record high.