Given that Buffett..

A.) has bought stock at prices above today’s close.

B.) has been willing to pay a $4 per share premium to that market purchase price when you include the 1% buyback tax (I don’t see how it could be avoided under the ‘netting’rules—they don’t issue stock) and

C.) has indicated he’ll only buy back stock at a meaningful discount to intrinsic value…

I feel pretty confident that a buyer at these levels will be very satisfied with the entry price over the longer term. And other than the need for cash/liquidity I don’t think it’s a good sell point.

Just a personal thought: over the years—I’ve come so close to selling meaningful shares of Berkshire in the name of diversification, but by employing wide intrinsic value estimates that the stock rarely, if ever, meets…I’ve been “forced” to hold.

Buying Berkshire decades ago at a ridiculous discount to Intrinsic Value…the dream scenario emerged: the stock rose steadily with an almost constant DISCOUNT to IV of 5-20%. By trading so “poorly” relative to value I was forced to hold—and even buy MORE shares at times when I logically needed to sell for diversification. I’ve always thought this is what Warren wanted. He doesn’t want to lose long term shareholders—an extension of his family. It’s like Berkshire’s given us excellent returns AND removed selling temptation :)

P.S. With plans to sell a large chunk of stock the next couple months…I actually BOUGHT more shares this week. It happened..again!

Berkshire Hathaway FAQ

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