This is something we all expected from Warren Buffett who said yesterday that Berkshire Hathaway is not planning to re-purchase its shares are the company is doing well and its intrinsic value is not too high than where the shares are traded. Berkshire’s Chairman also said that his company was thinking to buy back its stock in 2000 because Berkshire’s intrinsic value was a lot higher than where the shares were trading.
I remind you that Warren Buffet and his Vice-Chairman Charlie Munger asked many companies to buy back their stock during the 70s and 80s. However, everything has changed now and he thinks that everything is going well.
“Most of the repurchasing in recent years was foolish [because companies were paying too much],” said Buffett.
The good thing is that Buffett doesn’t deny that Berkshire would buy back stock if its shares were trading for “demonstrably lower than intrinsic value, but I don’t think that situation exists now.”
Well, Mr. Buffett we all wish you goodluck, but only time will tell if everything is OK with Berkshire Hathaway’s shares.
No related posts.
