Do we know the particulars of Abel’s pledge to spend his annual salary on BRK shares? This year’s purchase was straight forward, he bought along side the company when the stock was attractively priced for both purchasers. But what happens in a year where BRK stock is above the buyback price, does he continue to buy for his personal account even if BRK is above intrinsic value? I can’t imagine WEB purchasing a stock in his personal account that he thought was overpriced at the time of purchase. It will be interesting to see how Greg handles this should this scenario arise.
Hi Doug — During the CNBC interview on Thursday, Abel seemed to indicate that he will buy shares on the Wednesday after the annual report every year. He didn’t mention anything about it occurring only when the price is attractive. I hope something like this gets asked during the AGM because it would be very interesting to hear what he would do in a situation like that. My guess is that he’s buying regardless of price.
Do we know the particulars of Abel’s pledge to spend his annual salary on BRK shares? This year’s purchase was straight forward, he bought along side the company when the stock was attractively priced for both purchasers. But what happens in a year where BRK stock is above the buyback price, does he continue to buy for his personal account even if BRK is above intrinsic value? I can’t imagine WEB purchasing a stock in his personal account that he thought was overpriced at the time of purchase. It will be interesting to see how Greg handles this should this scenario arise.
Hi Doug — During the CNBC interview on Thursday, Abel seemed to indicate that he will buy shares on the Wednesday after the annual report every year. He didn’t mention anything about it occurring only when the price is attractive. I hope something like this gets asked during the AGM because it would be very interesting to hear what he would do in a situation like that. My guess is that he’s buying regardless of price.
If Warren and BRK have taught us anything over the decades, it's that they're the antithesis of mainstream finance:
- "Pay dividends to your shareholders instead of buying back shares."
- "Don't accumulate so much cash."
Man, few people ignore mainstream finance and apply Buffett's principles.
- Buyback shares
- Have cash in hand ready to deploy
Berkshire’s independent-minded way of doing business is one of my favorite things about it.