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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: very stable genius ✶  😊 😞
Number: of 22353 
Subject: More Bloomstran On Buybacks...
Date: 02/28/23 10:41 AM
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No. of Recommendations: 16
Another interesting take on this fascinating topic...

"One final comment on the record share repurchases in 2022.
A trillion dollars in shares repurchased bought 2.8% of the S&P 500's $36 trillion average market capitalization during the year.
However, shares outstanding shrank by only 1.1%.
What happened to the remaining 1.7%? That's the dilution that comes with CFOs telling investors to ignore share-based compensation because it's not a cash expense. Fine.
Here's an idea. How about ignoring share-based compensation but running the money spent buying shares through the income statement as an expense, but without the tax benefit? Pick your poison, pirates.
You can't have it both ways. Suggesting that executives are pirates is too harsh and unwarranted?
At least 40% of S&P 500 aggregate net income over the last two decades has not been used for outside shareholder benefit, but instead was paid to management.
Makes 2 and 20 look like a discount. There is a better word than pirates, but this is a G-rated letter. Speaking of which, I need to schedule my colonoscopy.
These pirates don't know which end is up."

And as we all know, when the next market crash/crisis hits and stocks are actually cheap all the buy backs will abruptly stop...
as CEOs tell us, "We must preserve cash in these uncertain times! Buybacks will resume when our stock is once again clearly overvalued!"

What a racket!

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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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