So we have hints about the how, and the reference to a 90c dollar MAY be a hint about how conservative, but it's mostly just up to Buffett's discretion.

As is the case for every other CEO on earth with decisions about capital allocation.

All Buffett is doing is making clear that the calculation of intrinsic value depends on the the individual - by giving examples of himself and Charlie coming up with different assessments based on their assessments of different factors.

It's not his job to provide a mechanical formula for others to apply.

The subject under discussion in the thread was the implications of a repurchase at a specific price and any implications that can be drawn from this specific fact to the intrinsic value as assessed by Buffett.

The next CEO may have a different approach to allocating capital once Buffett moves on. That is after all what the CEO's job is. Investors then will be free to draw their own conclusions about how comfortable they are with any new CEO's approach.

I am personally more than OK with this assuming it is done rationally and is based on an objective assessment of the circumstances at a particular time. The last think I would want a new CEO to be doing is to have Buffett pulling the strings beyong the grave (to be morbid for a second).

Berkshire Hathaway FAQ

---

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