Warren Buffett has invested $ 7.6 billion in his all-time favorite business. Here are 3 companies that do this.

When Warren Buffett’s Berkshire Hathaway Holding spends billions of dollars on investments, it usually becomes a headline.

But there was not much talk of buying Berkshire for $ 7.6 billion in the quarter, for good reason. The company was buying back its own shares.

Redemptions are a common way for companies to return capital to shareholders.

By reclaiming its shares, Berkshire reduced the number of shares available, giving each remaining shareholder a larger share of the company.

This is not the first time Buffett has bought shares. Berkshire repurchased $ 6.6 billion of its shares in the first quarter, followed by a repurchase of $ 6 billion in the second quarter.

But Berkshire is not alone. Here are three companies that return billions of dollars in cash to investors through repurchase. One of them may be worth buying for the rest of your pennies.

Meta platforms (FB)

Meta sign, logo in front of Facebook headquarters at 1 Hacker Way.

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Facebook rebranded Meta on October 28 to reflect its vision to “help bring metaversion to life.” The company makes a lot of efforts outside of social networks, including virtual և augmented reality headphones և smart glasses.

That said, Facebook remains Meta’s biggest business. The monthly active users of the application increased by 6% year-on-year, reaching 2.91 billion as of September 30. Taking into account Meta’s other platforms, Instagram, Messenger և WhatsApp, the number of active users of at least one product was 3.58 billion.

Meta’s financial performance has grown faster than its user base. Earnings for the third quarter rose 35% year-on-year to $ 29 billion, while diluted earnings per share rose 19% to $ 3.22.

The company has returned a lot of cash to investors and will continue to do so. Meta repurchased $ 14.4 billion of its own stock in the third quarter and increased its share repurchase authority by $ 50 billion.

After a 23% increase this year, FB shares are selling at a high price of $ 331 per share. If it’s too steep, you can use the popular investment app to buy stocks for as much money as you are willing to spend.

Bank of America (BAC)

Bank of America enters the city center overnight.

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While many businesses are afraid of raising interest rates, banks love them. So it is not surprising that in today’s environment, well-capitalized banks are not shy about returning cash to shareholders.

Just look at the financial giant Bank of America, which bought back its huge $ 9.9 billion worth of common stock in the third quarter.

The redemption was part of the bank’s $ 25 billion share repurchase plan announced in April. Last month, the council updated its $ 25 billion repurchase plan to replace the previous plan.

Bank of America also returns cash to investors through quarterly dividend payments. In June, the company increased its quarterly payment by 17% to 21 cents per share.

At the current price of shares, the bank’s yield is 1.8%.

Apple (AAPL)

Apple Inc. is an American multinational technology company headquartered in California.

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No discussion of repurchases in today’s market would be complete without mentioning Apple’s tech gorilla.

The reason is clear. Of all the shares in the US stock market, Apple spends more on repurchases than any other company.

Shares of Apple in the fourth quarter of fiscal year amounted to about $ 20 billion. In 2021, the company bought back $ 85.5 billion worth of shares.

It is easy to understand why. Apple is one of the largest companies in the world with a market capitalization of more than $ 2.4 trillion. It has a huge pile of cash – $ 191.8 billion – last reported.

CFO Luca Maestri recently said that the company continues to make progress towards its goal of “achieving a net cash neutral position over time”. Thus, more repurchases are likely along the way.

Apple has doubled its share price since the beginning of 2020. If you want to jump high, some apps may give you a free Apple share just to sign up.

Redemption or Banks?

Visitors in Yaltown attended the largest exhibition of works by pop art legend Andy Warhol in Canada.

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Owning a company that buys back its shares may seem tempting, but keep in mind that stocks, even the best ones, are volatile.

If you want to invest in something that has little to do with stock market ups and downs, consider a real but neglected asset, such as fine arts.

According to the Citi Global Art Market Chart, contemporary art has surpassed the S&P 500 by 174% in the last 25 years.

Investing in an art like Banksy և Andy Warhol used to be an option for the extremely rich.

But with the new investment platform, you can also invest in iconic art, as Jeff Bezos and Bill Gates do.

This article provides information only: should not be construed as advice. It is given without any kind of guarantee.