Letters by Topic
Letters on Share Buybacks
When a company repurchases its own shares, reducing the share count and increasing each remaining shareholder's proportional ownership—value-accretive only when the stock is bought below intrinsic value.
1984·Buybacks only when cheap
A repurchase is sensible when a company buys its own stock at a meaningful discount to conservatively calculated intrinsic value.
2020·Repurchases as a capital-allocation tool
Berkshire will repurchase shares only when the price is below intrinsic value, never to support the quote.
Explore the concept
Share Buybacks is one of the ideas behind the ValueOS tools. See it applied to real companies.