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Monday, September 26, 2011

Buffett Squashes My 100K A Share Dream

It's not everyday a billionaire squashes one of your dreams, but when Buffett announced Berkshire will repurchase shares when they are trading below 110% of book, he pretty much kept me from ever buying a Berkshire A below 100,000 USD.

Fox News, does this count a class warfare? I'm sure you could spin it somehow.

It's not surprising that Buffett is signaling Berkshire is cheap, but it is surprising he is willing to repurchase shares. Maybe this will be like 2000 and he will never need to pull the trigger, but if he ends up repurchasing it would be historical. Repurchasing shares is essentially a liquidation of a business and a way to give capital back to your shareholders. With so many interesting opportunities in terms of large high quality companies, I thought Berkshire would never point the gun to themselves, but I guess at these prices Berkshire is too good to be true.

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