Post #519 by kelbon on the Berkshire Hathaway board

Please be patient and understanding when interacting with others, and avoid getting frustrated or upset if someone does not respond to your posts or if a discussion does not go as you expected. Remember that everyone is entitled to express their own perspectives. Furthermore, even when you don't entirely agree, try to benefit in some way from it.

- Manlobbi

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

Unthreaded | Threaded | Whole Thread (35)

Prev | Next

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 5

Buybacks done at fair value do not increase the value of the remaining shares at all.
A whole lot of people (including many a CEO) can not get their heads around that simple fact.
Depending on the particular way they misunderstand things, they'll react in various illogical ways.

Buybacks done at fair value do not increase the value of the remaining shares at all in the present.

Yet, a smaller share count going forward increases the likelihood that earnings per share (EPS) will,
all things being equal, be greater in the future. And, EPS is the metric that, for the majority of companies,
investors take as indicative of value, and so, it tends to influence share price.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (35)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.