Author Topic: Share Repurchases  (Read 41446 times)

John Hjorth

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Re: Share Repurchases
« Reply #10 on: July 17, 2018, 04:24:28 PM »
Holy smokes, I am happy to eat my words about buyback not likely to happen at current prices!

We’ll now move away from speculating as to how much of a discount the stock really is from IV as Buffett and Munger see it.

longinvestor,

Yes, "Holy smokes", and you're certainly forgiven. Nobody here on CoBF did see this coming. Going forward toward to August 4th will certainly be an interesting ride for Berkshire investors.
« Last Edit: July 18, 2018, 05:52:08 AM by John Hjorth »
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cubsfan

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Re: Share Repurchases
« Reply #11 on: July 17, 2018, 04:28:38 PM »
It's so good to see Warren change his mind on these things.

NeverLoseMoney

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Re: Share Repurchases
« Reply #12 on: July 17, 2018, 04:29:44 PM »
It's kind of interesting to me that the press release says "share repurchases can be made at any time that both Warren Buffett [...] and Charlie Munger [...] believe". So they both have to agree that shares are trading below intrinsic value before they can repurchase. Usually Buffett takes sole responsibility for capital allocation decisions. Munger might give his input, but Buffett is responsible for the decision to buy or sell a business or stock. Here they explicitly share the responsibility for share repurchases.

longinvestor

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Re: Share Repurchases
« Reply #13 on: July 17, 2018, 04:41:16 PM »
So, if you’re reading their mind, what is the range of BV multiple that is “below IV”.?

Valuehalla

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Re: Share Repurchases
« Reply #14 on: July 17, 2018, 04:44:54 PM »
According to my calculation BV went up by app. 4,8 % since end of Q1 till today.

We are now/today  at app. 147.50 US$ and (KHC adj. at 148.50$)

IMO Intrinsic Value shall be minimum 1.4 above Bookvalue, which means marketprice for a B share shall be at app 208 US$

Cheers, holy smoke! Bishop John of Denmark, prepare the Omaha Vatican for celebrations. This is maybe not St. Elephants day, but a high rank holiday for the clerus worldwide!

« Last Edit: July 17, 2018, 05:26:34 PM by Valuehalla »
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Munger_Disciple

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Re: Share Repurchases
« Reply #15 on: July 17, 2018, 04:47:24 PM »
It is official now! The PR is posted on Berkshire web site:

http://www.berkshirehathaway.com/news/jul1718.pdf

I admit that until I saw this on Berkshire web site I was thinking there was a chance someone hacked into Business Wire web site.

scorpioncapital

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Re: Share Repurchases
« Reply #16 on: July 17, 2018, 04:55:38 PM »
If will buy back shares above 1.2x why not change the official target higher to 1.3? I don't get this discretionary change and no change in BV floor. Is he saying he wants to buy back between quarterly reports , before financial data comes out ?

Valuehalla

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Re: Share Repurchases
« Reply #17 on: July 17, 2018, 05:01:46 PM »
The Intrinsic Value is much much higher than 1.2 x BV.
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bizaro86

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Re: Share Repurchases
« Reply #18 on: July 17, 2018, 05:03:47 PM »
I would guess they don't change the number to 1.3 because then the stock will automatically trade above that number. This sounds to me like they are planning to do a buyback and want to actually be able to do so without driving up the price.

John Hjorth

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Re: Share Repurchases
« Reply #19 on: July 17, 2018, 05:08:28 PM »
It is official now! The PR is posted on Berkshire web site:

http://www.berkshirehathaway.com/news/jul1718.pdf

I admit that until I saw this on Berkshire web site I was thinking there was a chance someone hacked into Business Wire web site.

Thank you for sharing, Munger_Disciple!

-The most important announcement of them all.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai