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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?
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