Post #6438 by Cardude on the Berkshire Hathaway board

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

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2023 average repurchase price by month of both Class A and Class B expressed in Class B prices

December			360.71
November			355.27
October				348.50
September			366.42
August				361.16
July				347.62
June				335.55
May				329.00
April				308.57
March				308.51
February			306.07
January				312.92

==========================================

2023 yearend book value

Shareholders' equity                            = 561,273 million
Class A outstanding shares as of 23 yearend     = 1,441,483
BRKA book value = (561,273*1000000)/(1,441,483) = 389,372
BRKB book value = (389,372/1500)                = 259.58

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2023 average repurchase price by month of both Class A and Class B expressed in Class B prices

December 360.71
November 355.27
October 348.50
September 366.42...

FWIW, Berkshire was buying quite a bit in the interval Jan 1 - Feb 12. The average price during that stretch was about $376. The stock price was generally rising, so the purchases may have been concentrated in the first week or two, so they might have done somewhat better. Almost certainly not below $365.

Jim

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I wonder about those purchase prices, thinking to myself if it�s good for Berkshire to buy at that price why wouldn�t I? But for me, those prices don�t seem like a great bargain.

I also wonder if Berkshire has a minimum IRR they need to hit when doing these buybacks?

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I'm sure he picks his spots, but what is notable to me is that he is a buyer each month, and in fact in most months since he removed the 1.2x threshold

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�he is a buyer each month, and in fact in most months since he removed the 1.2x threshold�

I recall he and CTM have essentially said over the years they would only buyback when shares were at a �meaningful� discount to IV which I have always �felt� was 10-15% less than their avg. IV range. With So much cash in hand, Pricy equities, unclear BHE opportunities and no elephants on the radar, I wonder if WEB�s threshold discount to IV for buybacks has become a bit smaller? I suspect it has but curious as to other opinions here.

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Looks like he's willing to pay 1.4x BV. I am guessing he thinks that is below fair value. I suspected he considers fair value around 1.6 BV and the zone of reasonableness to be around 1.2 - 2.0 x BV.

I think he'll buy up to 1.5, especially to give his heir the ability to error on the higher side of reasonable. Probably still better than a dividend at fair value considering his partners' tax implications.

He still suggests its great that Coke and AmEx and Apple buy back shares which seems odd to me for Coke at least.

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