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Berkshire Hathaway Inc. Message Board

  • axpkocop axpkocop Mar 2, 2013 10:47 AM Flag

    End of 1st Qrt Book Value Estimate 2013

    It's early but since we are able to buy back stock 20% over book it's rather important.
    Current Book per share figures-114,200 + Earnings of 2200+ equity appreciation of 2000= End of 1st qrt book of 118,400 which assumes the market will stay even. So BRK's buy threshold is up to 142,000/sh.

    "Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB) spent about $100 million buying back its own shares on the open market in December, purchases that were made in addition to a previously announced acquisition of a large block of shares from a single investor.

    The company bought 9,475 Class A shares and 606,499 Class B shares for about $1.3 billion in December, according to Berkshire's annual report released late Friday. That means Berkshire bought about 275 Class A shares and all the Class B stock from the open market.

    Berkshire had disclosed on Dec. 12 that it spent about $1.2 billion buying 9,200 Class A shares from the estate of a single "long-time shareholder" that it didn't name.

    The December repurchases came as Berkshire's board for the first time authorized the company to pay as much as 20% above book value for its own stock. Mr. Buffett wrote in the annual report that the earlier threshold, of 10% above book value, had "proved unrealistic."

    Companies buy their own stock to reduce the number of shares in circulation. Such repurchases--common for other public companies but nearly unheard of at Berkshire before last year--give investors who retain the stock a larger stake in the company by taking some shares off the market.

    The buybacks show Mr. Buffett's belief that Berkshire is deeply undervalued, and that he wasn't finding enough ways to use Berkshire's capital that can match the benefit of retiring chunks of the company's stock.

    "Continuing shareholders are benefitted in a meaningful way by purchases up to our 120% limit," he wrote in Friday's report."

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222,999.00+175.00(+0.08%)Aug 25 4:02 PMEDT