No. of Recommendations: 3
I agree with your last point. One additional thing to consider, which I believe you are alluding to, is that if a company sits on cash for too long of a period, that becomes part of the initial valuation of the company. I think we can agree that may have happened with BRK.
So in essence, if BRK were to sit on large sums of cash for decades, it simply would be valued less than if it deployed its cash in an efficient matter.
So by deploying its cash with share buybacks or purchases at a fair or slightly elevated price, it is changing how the company should be valued in the first place.
