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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: Labadal ✭🐝  😊 😞
Number: of 22353 
Subject: Re: Brk, I think it's fair to say that brkb
Date: 07/09/25 3:35 PM
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I'll direct my questions to Jim tho anyone is free to opine.

When Buffett finally authorized the buyback WHY did he include the 1.1xs BV limit knowing the stock would quickly trade above the limit?

I'm not Jim. But I'll point out that Buffett did not know what the stock price would do in the short term, as he has repeatedly and consistently said over many decades. One might have made an educated guess but one could not know.

Two reasons he may have set the 110% of BV upper limit for repurchases:

1) He wanted any partners who were considering selling their shares to know that he thought they would be selling too cheaply at less than 110% of BV.

2) He wanted any partners uninterested in selling (actually, all partners) to know that he had their backs when making capital allocation decisions that would benefit continuing partners.
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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
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Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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