Berkshire Hathaway shares jump after Warren Buffett loosens policy on stock buybacks

Berkshire Hathaway Inc on Tuesday eliminated a restriction on its ability to buy back its own stock, a change that could help billionaire Chairman Warren Buffett deploy more of the conglomerate's cash. The new policy approved by Berkshire's board lets Buffett and Vice Chairman Charlie Munger authorize buybacks when both believe the repurchase price is "below Berkshire's intrinsic value," a determination that would be made "conservatively." Berkshire's old policy said repurchase prices would not exceed 1.2 times book value per share, or assets minus liabilities. The new policy is a major change for Berkshire, where Buffett has faced pressure to deploy more than $108 billion of cash and equivalents.