Berkshire’s Repurchase Policy: Too Little, Too Late?

Berkshire Hathaway acquired $928 million of its own stock during the third quarter of 2018 through a series of purchases of Class A and Class B shares from August 7 to 24.  A repurchase of this size, relative to the

Thoughts on Share Repurchases and Capital Allocation

The concept of share repurchases is not particularly complicated.  Repurchase programs allow companies to allocate capital toward purchasing its own shares either on public marketplaces or through privately negotiated transactions.  Capital allocation is one of the most important recurring functions

Berkshire Hathaway: The Next Ten Years

Berkshire Hathaway is expected to report 2015 results on February 27 along with Warren Buffett’s annual letter to shareholders.  Mr. Buffett’s practice of releasing the report on a Saturday morning is intended to promote greater thought and reflection on the

The Problem of Rational Capital Allocation

“In theory there is no difference between theory and practice. In practice there is.” — Yogi Berra Imagine that you are the founder of a highly successful small chain of restaurants.  After immigrating to the United States from Italy as

An Examination of Berkshire Hathaway’s Retained Earnings Test

Berkshire Hathaway appears almost certain to fail Warren Buffett’s five year earnings retention test when the 2013 annual report is released in February. We assess the validity of the test as well as the implications for Berkshire Hathaway if Mr. Buffett decides to return capital to shareholders.

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