Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
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?

Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.