Berkshire Hathaway (BRK.A  ) repurchased $928 million of its stock in quarter three. This is the first time that Berkshire has bought back stock since 2012. This decision came right before shares fell in October due to concerns over tariffs, rising interest rates, and slowing growth among the largest tech companies. Warren Buffett, CEO and Chairman of the company, bought the stock back because of a lack of appealing investment options. Berkshire bought back shares at an average price of $312,806.74 per A share and $207.09 per B shares.

Buffett has always argued that he could better increase shareholder value by investing in new companies rather than buybacks or dividends, but pressure has mounted as the company's cash pile has increased. The company had $103.6 billion in cash, short-term treasuries and other similar investments at the end of September. The company's insurance wing provides a large stream of cash. Float - the insurance premiums collected before claims are paid - reached $118 billion in September.

James Shanah, senior equity-research analyst at Edward Jones, commented that he wishes the company had bought back a bit more because, "It would appear that their stock is as good, or perhaps better, an investment than anything that's available for them in the market to buy."

Company buybacks peaked to 60 million in July. Historically, companies have used the most cash on capital expenditures - that is, factories, equipment, and other goods. However, in the first half of the year, share buybacks increased nearly 50% and approved repurchases are on pace to set a new full-year record above $1 trillion. There is a buyback period when a company can buy back stocks and when it can in order to prevent it from violating insider-trading rules. A company cannot buy back stock when it has nonpublic information that could affect the share price. Market volatility also tends to be higher when buybacks are not allowed.

Berkshire very recently changed its buyback policy back in July. Previously the company could repurchase shares if the stock price was below 20% of book value, but now the company can buy back shares if Buffett believes that the stock price is below the company's intrinsic value (which is not disclosed). He has said that the company's book value is a less helpful metric than it used to be because the company has shifted its focus to operating businesses rather than stock investments.

Buybacks are controversial. Critics say that the cash spent on repurchases can be better used on capital expenses or employee wages. Buffett has defended buybacks, saying that "The question of whether a repurchase action is value-enhancing or value-destroying for continuing shareholders is entirely purchase-price dependent." He also says that buybacks are a plug for long-term shareholders as long as the company's shares are undervalued.