Re: Effect of buybacks

The week's question

In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.

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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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it's just choosing a more aggressive point on the risk/return spectrum.

Exactly! And that was my very point. Because equities (in this case "Berkshire" made up of all its components) are riskier, over the long-term you will receive a higher return than you would in fixed income, and even higher than short-term fixed income like T-bills. Therefore, because Berkshire traded cash for Berkshire shares, we should expect a higher return over the long-term.

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This community has written 22,499 posts about Berkshire Hathaway. The article-length ones it recommended most:

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