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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: mungofitch ✹✺🐝 SILVER
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Number: of 22347 
Subject: Re: IV by the stock repurchase method
Date: 08/03/24 2:05 PM
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This might be a case that you want to make a more nuanced distinction between A and B shares.

If you're going to read meaning into the buybacks, it's worth noting that Mr Buffett has been expressing a strong (and somewhat rising) preference for A shares over B shares. In recent periods that both A and B shares have been purchased, the ratio of prices has been around 1540, not the "economic interest" ratio of 1500.

So, though a share repurchase at $626,685 per A share in May might correspond to $417.79 per B in terms of economic interest, it seems likely that it corresponds to a willingness to do a repurchase at a B share price of only around $406.94.

If reading something into those transactions, it's also noteworthy that no shares were repurchased in June. Most days in June the A price was below $615000 for some or all of the day, so numbers around that level were not enough to tempt him. It wouldn't be a simple matter of having been distracted, as I'm sure he and the broker understand how to use limit orders : )

Jim
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This community has written 21,850 posts about Berkshire Hathaway. The article-length ones it recommended most:
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