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There were no B shares purchased in the first quarter.

Average price paid in March was the highest of the three individual months.

Average price paid for A shares in March was 623,205.69, so that's both most recent and highest.

In months that they have purchased both A and B shares, the typical ratio recently has been 1540:1 between the average prices paid.
(i.e., they seem willing to pay a premium of around 2.66%)

So, one might infer that management currently feels that they would be happy buying B shares at about 623,205.69/1540 = $404.70 per B.

Jim

So, one might infer that management currently feels that they would be happy buying B shares at about 623,205.69/1540 = $404.70 per B.

FWIW, that's 1.56 times end year book, the last publicly known level. A bit eyebrow raising, in a way.
For the longest time the highest known-for-sure single buyback was at 1.438 times then-known book.

It's a "mere" 1.527 times Q1 book, i.e. book at end of the month (March) of the purchases.

Jim

A bit eyebrow raising, in a way.

The continued purchases in March and April are surprising. Maybe we have reached the point of the 0.5% to 1% pseudo dividend. Not awe inspiring.

Really nothing this quarter was awe inspiring. Maybe the cash pile.

The utility business continues to suffer even with no additional wildfire withholdings this quarter.

I think I’ll stop being a curmudgeon now and go do something fun for the rest of the day.

Jeff

FWIW, that's [the average repurchase in March] 1.56 times end year book....It's a "mere" 1.527 times Q1 book"

I get slightly different numbers using the equivalent A shares on p.47:

Start of Q1: $623,209.69 price/$389,372 BV = 1.601 repurchase price/start of quarter BV
End of Q1: $623,209.69 price/$397,627 BV = 1.567 repurchase price/end of quarter BV

Using the lower, 1.567 ratio and assuming that that represents a 5% discount to Buffett's estimated IV, then Buffett's estimated IV corresponds to 1.65 BV.
Using the lower, 1.567 ratio and assuming that that represents a 10% discount to Buffett's estimated IV, then Buffett's estimated IV corresponds to 1.74 BV.

Whatever the exact numbers are, March of 2024 was the highest repurchase price to BV yet paid (and Feb 2004 was the 2nd highest). Warren is telling us that his estimate of IV is greater than 1.65x BV, and possibly as high as 1.74x BV.

Using the lower, 1.567 ratio and assuming that that represents a 5% discount to Buffett's estimated IV, then Buffett's estimated IV corresponds to 1.65 BV.
Using the lower, 1.567 ratio and assuming that that represents a 10% discount to Buffett's estimated IV, then Buffett's estimated IV corresponds to 1.74 BV

Maybe he is telling us instead "I see no good opportunities, and I rather invest some cash in Berkshire than all in 5% Treasuries"?

Be careful with your "Warren's view of IV is what he is willing to pay for a share of Berkshire plus at least 5%-10%". That was true, but I think you are too stuck to his old "buybacks only with a discount to IV". In the Q&A he made it quite clear that in the current environment he sees no good opportunities to invest larger sums. I think to remember him saying "I am cheap" in the context of current valuations, indicating that everything that might move the needle simply is too expensive for his taste. And this is going on now for a long time.

This might have changed his opinion on buybacks from many years ago, on the required discount. It's a matter of adapting to a changed (more expensive) environment. As more expensive that gets as more sense buybacks make at a smaller or even no discount. Better to invest some Billions in a Berkshire that returns 10% than in 5% Treasuries, if leaving still enough ammunition for elephants should the environment changes again (my impression because he was so insistent on a large cash position is that he sees it quite likely that there will be elephants in the room again).

Just saying you should be careful to routinely add 10% or so to his highest buyback price and to think that still must be Warren's lowest estimate of IV. The environment changed and his views might take that into account.

From the 2023 AR:

"Berkshire’s common stock repurchase program permits Berkshire to repurchase its Class A and Class B shares at any
time that Warren Buffett, Berkshire’s Chairman of the Board and Chief Executive Officer, believes that the repurchase price is
below Berkshire’s intrinsic value, conservatively determined." p. K-33

The key phrase here is "conservatively determined." That is parallel to "margin of safety." I disagree that Warren would buy shares without including some protective discount in his reasoning. Warren doesn't use a short term value for IV. He uses a smoothed value.

I want a larger discount than what Warren would use for buybacks because I'm looking for a better return. The market typically provides this discount within a time frame that is advantageous.

Shaun

In the US, the donor would not be taxed on the appreciation (unrealized gain)if the shares were donated.

If the individual sold their shares to Berkshire, they would pay tax on the gain. They would have less (possibly much less)to donate as a result.

I can certainly see the Board of Directors having a policy to buy back the shares from the recipient of the donation at FMV to facilitate transactions like this. And I would approve of such a policy.

It would not be a “normal” buy-back. It would not have any relationship to IV, conservatively calculated.

<<<The key phrase here is "conservatively determined." That is parallel to "margin of safety." I disagree that Warren would buy shares without including some protective discount in his reasoning. Warren doesn't use a short term value for IV. He uses a smoothed value.>>>>

Based on some rather short comments on the subject of buybacks by Warren at the annual meetings(that I picked up), I'd venture to say that Greg Abel is the one behind the wheels over the past few years already. Why? Buybacks will make up the motherlode of capital allocation decisions over the coming decade and it is a great education/mentoring opportunity to estimate Berkshire's IV than doing the same with other outside businesses, where information is subject to interpretation. Warren can watch over the lad and that's a good thing.

So, if we are perceiving some change in the buyback regime, I'll chalk it up to a new bus driver.

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