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No. of Recommendations: 1
In your hypothetical tender offer for $50B shares, how much are you offering in an attempt to actually attract that many shares? So BRK.B traded for $226/sh on Friday, so how are you structuring your offer? A Dutch auction tender with a range from $240 to $260/sh? IMO, that's about the only way that you'd actually get anywhere near $50B worth, and I'm not even sure that it would be fully subscribed at $260/sh.

So, would $260/sh be a "good" deal for continuing shareholders? If I may be a heretic and use that old-fashioned, inappropriate metric called Book Value, that would be nearly 1.5x Q3 BV. It might still be a discount to intrinsic value, but it's probably not a deep discount.

Or would continuing shareholders be better off it BRK simply continues with a basic open market buyback of ~$5B per quarter at prevailing market prices, currently $226/sh?



SJ
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