Subject: Re: Say it isn’t So
Repurchasing shares is inappropriate when the shares are trading comfortably above intrinsic value (which I still think they are). And I think those two things are what lead people to say, "Let's continue to wait, and continue to retain our earnings/cash." But at some point, this can't be the answer - that's why Berkshire's Owners' Manual has the retained earnings test.

I agree the shares are trading somewhat above intrinsic value, perhaps a minority opinion here? That won't always be the case. Who would have thought the market would allow Berkshire to buy back nearly $80B already? It will happen again.

Has Berkshire been passing the revised retained earnings test? And does it even make sense, now that book value is losing its relevence?

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The revised retained earnings test requires two conditions to be true:

Berkshire’s increase in book value must exceed the performance of the S&P 500 on a five year rolling basis. Although not explicitly stated, I would interpret this to mean book value on a per share basis.

Berkshire’s stock must consistently sell at a premium to book value.