Message Font: Serif | Sans-Serif
No. of Recommendations: 10
I think the 10% interpretation is too narrow.

First of all the stock was sitting at $218+ on the day of the meeting.

What I thought I heard Buffet say is at 10 to 25% discount it is desirable to buy back shares, but only modestly so. As it moves past 25% I get more excited.

So at less than 10% discount is just isn't worth giving up the cash since it may have greater value utilized in a different manner now or in the future.

At 10 to 25% BRK gets a small benefit from buyback. Less of course at the lower end of this range and more at the higher end.

At 25% plus the buybacks can be meaningful to the remaining holders.

I would add that BRK did buy back north of $1 BB in March when the stock was in the 10 to 25% range. Based on current price levels I would not be surprised to see BRK buyback $4 BB+ in Q2 and every quarter after that. I think people are reading the last quarter total of $1.7 BB as misleading. He clearly didn't ramp thing up till late in February.

So my take is at $190 ish or less BRK will buy > $2 BB per month. Hopefully many times this.
At $200 ish to 210 likely $1 BB + per month
At $210 to $220 ish Maybe less than $1 BB per month.

Of course these targets rise a few dollars each quarter.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.