The article's calculation of intrinsic value left me somewhat puzzled. If the current intrinsic value is only $1 trillion, Greg Abel would definitely not announce a buyback plan at this time, as it clearly contradicts Berkshire's definition of the right timing for buybacks. Yet, the author concludes by affirming that Greg Abel will adhere to Berkshire's principles, which is utterly contradictory and baffling.
I hear what you're saying. Let me push back a bit. I've tried to be very conservative. If Greg thinks the value is $1.1 trillion and it's at $1 trillion (a ~10% discount), he might conclude that buying makes sense. I'd *expect* him to know better, that's why I trust his judgement.
Even Warren said that he and Charlie would differ in their calculations but would be close. I'd bet a lot of money that Greg doesn't think it's worth $1.5 trillion and that we're closer than you think. I suspect when we see the Q1 numbers, it'll show a modest amount of repurchase activity not buying hand over fist like a few years ago.
And I could be wrong. My friend Chris Bloomstran has Berkshire at $1.2 trillion. I need to follow my reasoning and he follows his.
The article's calculation of intrinsic value left me somewhat puzzled. If the current intrinsic value is only $1 trillion, Greg Abel would definitely not announce a buyback plan at this time, as it clearly contradicts Berkshire's definition of the right timing for buybacks. Yet, the author concludes by affirming that Greg Abel will adhere to Berkshire's principles, which is utterly contradictory and baffling.
I hear what you're saying. Let me push back a bit. I've tried to be very conservative. If Greg thinks the value is $1.1 trillion and it's at $1 trillion (a ~10% discount), he might conclude that buying makes sense. I'd *expect* him to know better, that's why I trust his judgement.
Even Warren said that he and Charlie would differ in their calculations but would be close. I'd bet a lot of money that Greg doesn't think it's worth $1.5 trillion and that we're closer than you think. I suspect when we see the Q1 numbers, it'll show a modest amount of repurchase activity not buying hand over fist like a few years ago.
And I could be wrong. My friend Chris Bloomstran has Berkshire at $1.2 trillion. I need to follow my reasoning and he follows his.