Author Topic: Buffett buybacks: Could Berkshire tender stock?  (Read 199769 times)

Dynamic

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #510 on: March 13, 2020, 04:31:11 PM »
0.26% of outstanding shares retired from 31 December to 4 March. Not enormous but substantial.

There's also a Form 3 out regarding 10% stake in Bank of New York Mellon BK. This seems to be a result of BK buybacks.
« Last Edit: March 13, 2020, 04:49:02 PM by Dynamic »


StubbleJumper

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #511 on: March 13, 2020, 06:13:36 PM »
0.26% of outstanding shares retired from 31 December to 4 March. Not enormous but substantial.

There's also a Form 3 out regarding 10% stake in Bank of New York Mellon BK. This seems to be a result of BK buybacks.


What is more encouraging, is if WEB bought 0.26% at ~$220, how much is he buying a few weeks later at $190 or $180?


SJ

longterminvestor

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #512 on: March 13, 2020, 06:23:04 PM »
Dynamic - out of respect for your work I feel obligated to be as exact as possible.  When reading your note I noticed my numbers were misleading.  Dates I used were Feb 13-March 4.  I should have included Dec 31 - Feb 13 purchases. There was an additional 847,574 Equivalent B shares purchased during period. 

Dec 31, 2020 Annual Report (page K-103 on Annual Report)
A Share:   701,970
B Share:   1,384,481,533
Equivalent B:    2,437,436,533

Feb 13, 2020 Annual Report (Page 1 of Annual Report):
A Share: 700,396
B Share: 1,385,994,959
Equivalent B:  2,436,588,959

Total Buyback from Dec 31 to Feb 13:
A Share:   1,574
B Share:   (1,513,426) - Some A must have been converted to B for the increased share amount
Equivalent B: 847,574

TOTAL Buyback from Dec 31 to March 4:
A Share:   2,847
B Share:   2,229,163
Equivalent B: 6,499,663

Outstanding share count reduction was more like 0.26666%. 

valueinvesting101

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #513 on: July 10, 2020, 11:49:31 AM »
Buffett's Berkshire Hathaway reduces share count, suggesting possible buybacks

https://www.reuters.com/article/us-berkshire-buffett-stock-idUSKBN24B2CZ?taid=5f08a57256bb3f000175c765

longinvestor

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #514 on: September 20, 2020, 09:43:11 PM »
A comment by Buffett at the annual meeting that Buybacks are never meant to move the stock price, yet the presence of Omaha as an "incremental buyer" does just that. By buying steadily quarter after quarter, the incremental buyer thing is important to Berkshire's stock price over the long term. It puts a floor of sorts. Of course, the posture will change once the stock starts trading above IV. 

aryadhana

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #515 on: September 21, 2020, 04:40:19 AM »
What if they dividended puts?   Strike price doesn't matter so much, as long as he's happy about being exercised at that price, since they would go out to existing shareholders.  Doing this solves the tension between appropriate consideration for selling versus continuing shareholders. 

gfp

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #516 on: November 07, 2020, 05:05:19 AM »
"Approximately $9 billion was used to repurchase Berkshire shares during the third quarter "

9/30 share count 1,570,636 A share equivalents
10/26 share count 1,563,152 A share equivalents.

So looks like an additional $2.38 Billion worth of repurchases completed after quarter end up to 10/26.  Quite the clip compared to his previous dribs and drabs.

Looks like he sold some AAPL near the top.  Have to dig into the numbers more but AAPL shares owned by BRK down to about 964.5 million shares instead of what would have been slightly over a billion shares post-split.  Maybe sold ~ $4.7 Billion at market value in the Q ?

Consolidated cash at $145.7 Billion after $9 Billion in repurchase activity in the Q
« Last Edit: November 07, 2020, 05:20:32 AM by gfp »

thepupil

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #517 on: November 07, 2020, 05:16:23 AM »
~7% annualized, not bad at all.

SwedishValue

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #518 on: November 09, 2020, 03:13:06 AM »
Some data.

For July, Berkshire bought back 1 965 A-shares. During July a total of 7 652 A-shares were traded at the NYSE, so this would correspond to Berkshire Hathaway repurchasing 25,7% of the going volume of A-shares.

For July, Berkshire bought back 10 521 719 B-shares. During July a total of 126 051 720 B-shares were traded at the NYSE, so this would correspond to Berkshire Hathaway repurchasing 8,3% of the going volume of B-shares.

For August, Berkshire bought back 2 531 A-shares. During July a total of 8 064 A-shares were traded at the NYSE, so this would correspond to Berkshire Hathaway repurchasing 31,4% of the going volume of A-shares.

For August, Berkshire bought back 10 846 595 B-shares. During July a total of 102 380 036 B-shares were traded at the NYSE, so this would correspond to Berkshire Hathaway repurchasing 10,6% of the going volume of B-shares.

For September, Berkshire bought back 3 670 A-shares. During July a total of 9 396 A-shares were traded at the NYSE, so this would correspond to Berkshire Hathaway repurchasing 39,1% of the going volume of A-shares.

For September, Berkshire bought back 11 387 889 B-shares. During July a total of 115 358 782 B-shares were traded at the NYSE, so this would correspond to Berkshire Hathaway repurchasing 9,9% of the going volume of B-shares.

What conclusions can we draw from this? I guess they most likely have bought A-shares (maybe also a few B-shares) off-market. I believe there were some provision which made Berkshire unable to repurchase more than a set proportion of daily trading volume? Maybe someone better informed in American securities law can inform me!

Dynamic

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Re: Buffett buybacks: Could Berkshire tender stock?
« Reply #519 on: November 10, 2020, 12:07:49 AM »
There is a Safe Harbor rule which exempts companies from Insider Trading or Stock Manipulation investigations for their buyback activity which limits buying to certain times and certain average daily volumes. Berkshire is clearly not following that rule unless it has negotiated some pretty large off market purchases.