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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 2
What should we make of Warren repurchasing stock in May at $627K but not repurchasing stock in June or July when the stock price got down to $611K? Maybe the time spent at $611K was too brief.
No. of Recommendations: 7
As I've probably said here before, I think the Q2 repurchases were entirely from incoming phone calls with blocks of stock to sell and not open market stuff.
Warren actually issued stock in Q3 and Q4 so far!
No. of Recommendations: 1
What should we make of Warren repurchasing stock in May at $627K but not repurchasing stock in June or July when the stock price got down to $611K? Maybe the time spent at $611K was too brief.
Were the repurchases in May open market repurchases, or were they from heirs of people who had recently died, or from people who wanted to sell their old blocks of shares for some other reason. I think BH has a policy of purchasing large blocks of shares from long-time holders directly instead of allowing those A shares to hit the market.
No. of Recommendations: 5
Interesting. Also maybe why repurchase a tiny amount at a slight discount, esp. if he thinks a more sizable discount is on the horizon.
Glad we gave a nice offer to the Scott estate and that we now own 100% of BHE. I imagine this was easier to close under Warren’s tenure given how close they were. I imagine we will look back and our expense for this minority stake will appear relatively inexpensive. I’m also glad that the Scott family will continue to be large and loyal Berkshire shareholders.
No. of Recommendations: 1
"Glad we gave a nice offer to the Scott estate"
Thanks. I remember now. Warren paid market price for the Scott estate shares, even though the purchases were off-market.
No. of Recommendations: 5
"Glad we gave a nice offer to the Scott estate"
Thanks. I remember now. Warren paid market price for the Scott estate shares, even though the purchases were off-market.
Not sure we are talking about the same thing, but Warren issued new shares to the estate of Walter Scott in exchange for the last of the BHE shares.
Other long-time shareholders like the Gottesman shares were repurchased directly (the mechanics are actually Ruth donates appreciated stock to Med School -> Berkshire immediately buys the block directly from the Med School).
I do think that we will look back on this buy-in of the last of the minority interest in BHE as a very attractive price.
No. of Recommendations: 2
Thank you for straightening me out, Chris. You can see that I'm trying to narrow down what Buffett estimates IV to be by looking at the price and P/B where he is willing to repurchase shares, not repurchase shares or actually issue shares. Maybe you can help me.
Repurchases: The highest repurchase price paid so far, and the highest P/B, was in March, 2024, when he paid an average price for A-shares of $623K. That represents 1.60 times the starting book value for that quarter and 1.57 times the ending book value for the quarter. In February he paid $621K per A-share, representing 1.60 times the starting book value for that quarter and 1.56 times the ending book value for the quarter.
No repurchases: Berkshire made no repurchases in June, July, August and September when the stock price ranged from $610K/A-share to $716K/A-share, representing about 1.45 times book value to 1.73 times book value.
Stock issuances: On Sept 30 Berkshire issued B-shares in partial payment for BHE shares. The B-shares closed at $460 on Sept. 30, corresponding to an A-share price of $690K and a P/B of 1.58.
It looks to me from the above data points that Buffett believes that a fair price for Berkshire shares is about 1.58x book value. Or? Berkshire shares currently sell for 1.55x BV.
No. of Recommendations: 0
Warren actually issued stock in Q3 and Q4 so far!
@nola622,
I see that Warren issued 912 A shares (equivalent, or 1.368 million Bs to be more accurate) in Q3. I also see that there were no additional shares issued thru' 10/21/24. Why do you think that Warren issued additional shares in Q4?
No. of Recommendations: 3
Berkshire issued stock on 10/31 to complete the full purchase of BHE - do a search for “October” in the Q and it should come up after a few clicks
No. of Recommendations: 1
Berkshire issued stock on 10/31 to complete the full purchase of BHE - do a search for “October” in the Q and it should come up after a few clicks
Just saw that, thanks very much 🙏
No. of Recommendations: 11
Yes, from page 9 of the quarterly report:
"Additionally, on September 30, 2024, Berkshire acquired 1.26% of BHE’s outstanding common stock held by certain other
noncontrolling shareholders in exchange for 1,368,508 shares of Berkshire Class B common stock valued at $625 million as of that date.
Berkshire also entered into an agreement to acquire the remaining shares of BHE common stock held by other noncontrolling
shareholders in exchange for 923,123 shares of Berkshire Class B common stock. This transaction closed on October 31, 2024. At that
time, BHE became a wholly-owned subsidiary of Berkshire."
Therefore, the price/share was $625 million/1,368,508 shares = $456.70, equivalent to $685,052/A-share or 1.565 times Sept 30 BV.
Thanks.
