Share buyback not likely any time soon. Read Buffett's comments about the share buyback:
"Buffett also addressed a share buyback program and said it would be self-defeating to buy back shares. He said he would buy back stock if Berkshire were well below the bottom range of intrinsic value."
Here are my thoughts for staying long:
1) WB said BH is not overpriced
2) They are looking at two more acquisitions of the order of Lubrizol
3) Re-insurance loss is a rare occurrence. It has been found in the past that re insurance companies do well 3-6 months post disasters due to rise in premiums.
4) All other non insurance businesses are doing just fine.
5) Not sure if Q1 included gains from Lubrizol.
6) The best: It appears that WB does not like to give high hopes, meaning he is the kind who under promises and over delivers. At least the tone sounded that way.
This stock will see $90 before any reversals.
There could be a downward pressure mainly because the market may not support and some longs may get out seeing the reduced earnings but I would buy on that dip. But then I am already long.
your thoughts please. When might your timeline say we reqch $90? Also and at what price would you begin to consider selling your shares. I have 200 shares at an ave. price of $81.80. I thinnk I'm spinning my wheels here, but not quite ready to sell. Thanks for your opinion
I wouldn't count on a stock buy back any time soon.
Read some of these new comments that he made today:
The ultimate sign that Berkshire is running out of places to put its money, Buffett said Saturday, will be when Berkshire finally pays a dividend.
Under Buffett, Berkshire hasn’t paid one in more than four decades. Some shareholders are clamoring for that streak to end sooner rather than later. After all, Buffett likes investing in companies that share their profits with shareholders by paying dividends—why shouldn’t Berkshire show its own shareholders the same love?
Buffett told the assembled crowd at this year’s annual meeting that shareholders should simply sell some of their Berkshire shares if they need income. But they shouldn’t wish for a reversal of the longstanding dividend policy.
“There will come a time–who knows how soon,” Buffett said, “when we do not think we can lay out $15 billion to $20 billion a year and get something that’s immediately worth more than that for our shareholders.”
But when that happens, the stock will likely trade down, since it’s an admission growth has stalled, Buffett said.
Too much insurance now?
As a percent of its revenue and income it's been dropping for the last decade. BRK's non insurance operating earnings are up every year, due to acquisitions outside of insurance.
Personally I'd like to see them buy more insurance.
Well, I am not sure about that. Considering all the recent natural disasters; their percentage seems prudent at this point. Thought Buffett made the best of a bad situation this weekend, in the end... net positive for the stock.
Monday will clearly be a down day.
Insurance has significantly damaged profits this quarter. I respect Warren Buffet as a person/investor and appreciate his integrity. However, I believe that Berkshire Hathaway will be facing some downward pressure this week.
Read this article, you will understand: