No. of Recommendations: 8
I am still perplexed, as I assume many of you are, that BRK began buybacks at $486 ish, publicly disclosed on cnbc, and then ceased to actively buyback as the stock dipped well below $486?. Unfortunately, we will need to wait 3 more months to see if anything changes on this front?
My only thoughts on this are:
a) BRK is not compelling at $465+ to BRK?
b) BRK had an acquisition opportunity come across their desk and stopped buybacks during the evaluation process?
Does anyone have any thoughts or additional explanations?
I would also add an observation regarding insurance underwriting profits. I know Geico declined more than piers in Q1. Still not clear if this will improve over the year, but as Greg demonstrated on the slide, underwriting profits still are well above long term trends. Since I use the average of long term trends for my valuation model, the Q1 results do not negatively impact my updated valuation. Do others have a similar or different view when they update their IV?
