experts love the floor as a result of the buyback talk however few talk about the ceiling caused by buffet. As long as brkb yields zero with a 1.2 xs BV buyback limit, it will take another big rally in the spy to move brkb toward 1.5 xs BV. Another wasted year, not one expert asked buffett the most obvious questions, year after year the same wasted time and wasted money. oh well.
« Could you expand on this? »
I'll be happy to.
The "Buffett Put" at 120% of Book Value per share also puts a ceiling on the price per share that a rational investor might pay today for this stock.
IF I can hold this stock for ten years AND I want a real (net of inflation) return of 5.5% on my investment, AND I am convinced that BRK will continue to grow book value per share by a real 7% per year, AND that Buffett or his successor will bail me out at 120% of book value per share ten years from now when I go to sell, THEN I can pay up to, but not more than, 138% of book value per share today and still make my goal, 120%*(1.070/1.055)^10.
Two years ago, you screamed every five minutes that there was a 'ceiling' at 1.2 X Book, and that BRK would never break through *that* unless Buffett paid a dividend.
No dividend, yet here we are hovering close to 1.4.
You're a clueless loud-mouthed moron who thinks he's General Patton.
At best, you're Sergeant Schultz. Like him, you know nothing.
Who's more full of c**p, you, or JAD?? (Man, that's a tough call.)
Do something worthwhile for once, Harvey. Sit down and shut up.