Berkshire Hathaway Inc. (BRK.B) has granted its top employees more flexibility to spend cash on 澳洲幸运5官方开奖结果体彩网:repurchasing shares.

In a , the Omaha, Nebraska-based conglomerate confirmed that previous restrictions have now been lifted, paving the way for CEO Warren Buffett and Vice Chair Charlie Munger to authorize buybacks when both of them believe that the repurchase price is “below Berkshire’s 澳洲幸运5官方开奖结果体彩网:intrinsic value.” Under the old policy, executives at the company were only permitted to buy back shares when the price for the stock did not exceed a 120% premium of the 澳洲幸运5官方开奖结果体彩网:book value. The last time Berkshire announced a share buyback was in 2012. (See also: How Berkshire Should Prepare for Life After Buffett)

Berkshire added that future decisi🦄ons about repurchasing stock will be made “con🐻servatively.”

Investors, who had been putting the company under pressure to deploy its $108 billion-plus of 澳洲幸运5官方开奖结果体彩网:cash and equivalents, responded to the announcement by sending Berkshire’s 澳洲幸运5官方开奖结果体彩网:Class B shares up 1.89% in 澳洲幸运5官方开奖结果体彩网:pre-market trading.

Speaking to🌠 , Steven Check, president of Check Capital Management Inc., described the new policy as “somewhat significant,” given B👍erkshire’s current circumstances. “This is a good thing in an environment where Berkshire has a lot of excess cash, nothing to buy, and an underpriced stock,” he said.

Meye💃r Shields, an analyst at Keefe Bruyette & Woods Inc, told the mo🐎ve is "overdue."“This is something that’s been talked about for years,” he said. “This ever-growing cash pile is now overwhelming.”

Buffett’s firm is currently sitting on a lot of cash as it struggles to find investment opportunities that meet its 澳洲幸运5官方开奖结果体彩网:value stock-picking criteria. In February, Buffett sent a letter to Berkshire Hathaway shareholders, revealing 𓆏that he has been having difficulties finding bargains as market prices continue to increase.

Buffett also hinted at the time that Berkshire ▨would prefer to put its excess cash to use by repurchasing stock, rather than paying dividends, because dividends are difficult to cut.

Buffett recently endorsed Apple Inc.’s (AAPL) decision to increase its own buybacks, claiming that the move could boost the stock’s value. However, the Oracle of Omaha’s colleague Munger has been less flattering of share repurchase programs in the past, warning that some companies buy back their own shares just to prop up their stock prices. (See also: Buf♌fett's Berkshire Hathaway Buys 75 Million More Ap⛎ple Shares.)

In the press release, Berkshire said it will not repurchase any stock until it releases second-quarter results, due Aug. 3. The company also added that it will not allow buybacks to reduce its cash and equivalents below $20 billion. (See also: Berks꧒h🐼ire Hathaway to Net $1.7B in Dividends After Bank Stress Tests: Report.)