Halls of Shrewd'm / US Policy
No. of Recommendations: 12
Looking at recent 10-K, Berkshire has repurchased $60B over last 3 years and has put a net $18B into other equities. Big statement there, IMO.
Also, since removing the buyback threshold of 1.2x book, starting in August of 2018, they have repurchased in 46 out of the 53 total months through year end 2022.
No. of Recommendations: 1
may it continue.
Buybacks are certainly controversial to some but WEB is not overpaying IMO.
No. of Recommendations: 0
Didn't Buffett once outline that the universe of stocks with floatations large enough for Berkshire to purchase a sizeable amount but not affect the share price was rather small.
Maybe 40-80 in the S&P 500 and another 100 globally?
I might be mis-remembering this.
No. of Recommendations: 0
<may it continue.
Buybacks are certainly controversial to some but WEB is not overpaying IMO.>
Amen!
Buybacks are foolish when done above intrinsic value, which is quite often for much of the S&P500!
Buybacks are smart when done below intrinsic value and Warren never overpays.
"The math isn't complicated: When the share count goes down, your interest in our many businesses goes up.
Every small bit helps if repurchases are made at value-accretive prices. Just as surely, when a company overpays for repurchases,
the continuing shareholders lose. At such times, gains flow only to the selling shareholders and to the friendly, but expensive,
investment banker who recommended the foolish purchases." ~ Warren Buffett
No. of Recommendations: 0
Didn't Buffett once outline that the universe of stocks with floatations large enough for Berkshire to purchase a sizeable amount but not affect the share price was rather small.
Maybe 40-80 in the S&P 500 and another 100 globally?
I might be mis-remembering this.
He most often states how few opportunities will "move the needle" at Berkshire, here he's talking about the universe of large enough companies.
He's been recently outlining how amazing it is that we've been able to buy so much OXY stock so quickly without affecting the price - this is because of the amount of trading in and out of the stock that happens. I wonder if he didn't say to his buyer "buy up to X% of OXY without affecting the price" and it happened way faster then Buffett expected.
When he talks about Berkshire repurchases, he knows he can't buy as much stock because of how little people trade in and out of it, and how much is owned for the long term.
I think he delegates the figuring out of how quickly stock can be purchased without affecting price.
