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BRK halted?


orion
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Berkshire Hathaway (NYSE: BRK.A; BRK.B) has purchased 9,200 of its Class A

shares at $131,000 per share from the estate of a long-time shareholder. The

Board of Directors authorized this purchase coincident with raising the price

limit for repurchases to 120% of book value. Berkshire may purchase additional

shares in the market or through direct offerings at no more than 120% of book

value.

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Wow. topping his 110% level to 120% of BV. Nice recommendation from WB to buy BRK  :)

 

Potential reason to increase buyback threshold: they've learned that they don't have to actually buy back significant amounts for the threshold to act as a buoy on the stock; if higher threshold results in higher stock price, it makes acquisitions paid for in stock cheaper.

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Wow. topping his 110% level to 120% of BV. Nice recommendation from WB to buy BRK  :)

 

Potential reason to increase buyback threshold: they've learned that they don't have to actually buy back significant amounts for the threshold to act as a buoy on the stock; if higher threshold results in higher stock price, it makes acquisitions paid for in stock cheaper.

 

Potential reason to increase buyback threshold: an enormous pile of cash sleeping in Omaha!

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New Buyback number conservatively calculated is 89.285 on the B's. 

 

Likely close to 90 real-time, depending on your estimate of BRK Sandy losses and their effect on BV.  GEICO will get hit pretty hard with the #1 market share in those states (15.9% vs Allstate at 14.9%) - but most cat reinsurers are coming out pretty unscathed by Sandy.

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If it was Gottesman I think they would've used his name in the press release since he would need to file being a Director.

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Could be Sandy but it's just speculation at this point.  Sandy is still alive, right?  I guess he could still have an 'estate' though.

 

Buffett has alluded many times to folks he knows who should be on the Forbes 400 list from BRK stock holdings but are unknown to Forbes and like to keep it that way!

 

There are probably quite a few secret billionaires in his club..

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Potential reason to increase buyback threshold: they've learned that they don't have to actually buy back significant amounts for the threshold to act as a buoy on the stock; if higher threshold results in higher stock price, it makes acquisitions paid for in stock cheaper.

 

Potential reason to increase buyback threshold: an enormous pile of cash sleeping in Omaha!

 

I won't complain either way.

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If it was Gottesman I think they would've used his name in the press release since he would need to file being a Director.

 

OR could it be http://www.businessweek.com/news/2012-10-22/albert-ueltschi-pilot-billionaire-buffett-cohort-dies-at-95

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Guest rimm_never_sleeps

it's .5%.  ;) this is a small thing he can do to kind of get the price closer to his idea of intrinsic value and help the various foundations that need to sell it.

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Guest rimm_never_sleeps

Buffett has alluded many times to folks he knows who should be on the Forbes 400 list from BRK stock holdings but are unknown to Forbes and like to keep it that way!

 

There are probably quite a few secret billionaires in his club..

 

he's on it. #285

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So BV  = about $75; BRK now says they will buy back stock below 120% = $90 (where it is trading today).

 

BRK has the cash to buy back lots of shares; they also now appear more willing to actually buy back shares in a meaningful way (buyback today is a good start).

 

BRK's businesses are heavily weighted to insurance and US housing... both of which look very promising moving forward - insurance entering a hard market and housing is improving. BRK should be able to grow BV the next few years by 10% per year quite easily.

 

Putting it all together... BRK stock today looks to me to be a great substitute to holding bonds... limited downside and solid upside of 8% to 12% over the next few years.

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Sold to beat the coming tax hikes?

 

Most likely!  And a nice public advertisement to any other large blocks of stock who now know they can lock in a 15% rate on a lifetime's worth of appreciation at 13x,000/share with a call to Omaha.

 

I hope there are more in the next few weeks. 

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