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
So BRK has cash and marketable securities on its balance sheet, presumably valued at 1 x book.

And other productive assets, valued at say *P* x book.

*P* is whatever it is so that the combined valuation gives whatever the actual price to book is.

So if some cash is used to buy back stock, then on a per remaining share basis, there is now a higher proportion of marketable securities and importantly of productive assets ... giving a higher combined price to book.

Unless the reduction in cash reduces *P*.

Why might that be?
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.