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No. of Recommendations: 16
I have no objection to the idea. I'm sure head office has even considered it.
But another sad "fact is a fact": there's no reason to think it will change the share price.
Buybacks don't, on average.
People see the earnings per share go up in proportion to the share count reduction, but many seem to forget the value of the cash leaving the building.

Statistically the price might rise for Berkshire, but only by a rounding error amount.
Share price will track share value over time. Fitfully, but inexorably.
Sample arithmetic:
If you buy back 10% of your shares at a 10% discount to fair value, you've added around 1% to value per share.
So the market price will be (say) $555,000 instead of $550,000 in five years. Ho hum.

Always invert:
If forgoing a 1% bump is how small the penalty is for NOT doing it, the choice to wait for a juicy elephant opportunity is shown to be more reasonable than you might at first think.

Jim
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