Companies that can pull off significant buy backs make much more cash than they need to keep the business going. This cash, because it is not needed by the business, may be transferred to the owners. Because buy backs result in cash (an asset) from being removed from book value, book value falls. Because of this, ROE increases. ROE is a pretty good clue to use to find such businesses. I don't think it is any tougher than that, academically speaking.
He finally gets it, or you finally get it? I estimated the IV/BV was ~1.48 in 2013, and now estimate it to be ~1.54 in 2014.
"This cheery prediction comes, however, with an important caution: If an investor’s entry point into
Berkshire stock is unusually high – at a price, say, approaching double book value, which Berkshire shares
have occasionally reached – it may well be many years before the investor can realize a profit. In other
words, a sound investment can morph into a rash speculation if it is bought at an elevated price. Berkshire
is not exempt from this truth."
So, somewhere between 1.2 and 2. Hmmm...
It is very SAD that your kids own stock in a business run by such a joker. You can't make this sheet up.
"didn't the SEC, FORCE, FORCE him to mark to market our public company holdings and DISCLOSE them ?"
I remember a week or two after that, the buy turned positive.
I like that you hold Buffett responsible for TESCO's accounting fraud. You are a class act.
Why are you still here?