Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has bought back tens of billions of dollars of stock over the past few years. In fact, the conglomerate has spent more on buying back its own stock than it has on any other investment since the current version of its buyback plan started in 2018.

However, Berkshire's third-quarter buybacks were significantly lower than other recent quarters. In the first quarter of 2023, Berkshire spent about $4.4 billion on buybacks, and in the second quarter, it spent another $1.4 billion. But in the third quarter, the buyback pace slowed even further to $1.1 billion. Since buybacks are generally indicative of management thinking the company's stock is attractive, is CEO Warren Buffett trying to signal something about Berkshire's current valuation?

A few years ago, Berkshire Hathaway made a big change to its share repurchase program. Previously, buybacks were only authorized when the stock traded below 120% of its book value. However, with book value becoming a less relevant valuation metric for Berkshire's business over the years, it was time for a change.

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Source Fool.com