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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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Author: RaplhCramden ✭  😊 😞
Number: of 22989 
Subject: Re: SIRI
Date: 08/10/25 11:40 PM
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Texirish:
Buybacks are nothing more than investing a company's cash in the future prospects of the company.

Building a new factory paid for with cash is nothing more than investing a company's cash in the future prospects of the company. It doesn't raise or lower the company's equity. It doesn't raise or lower the company's intrinsic value. But it does change the future.

Buybacks are nothing more than investing a company's cash in the future prospects of the company. Except they also lower the company's equity and the company's intrinsic value. So it isn't quite "nothing more" than future prospects it is a change to the total amount invested in the company.

But you know what else lowers the equity and intrinsic value of the company? Paying a dividend.

He's just stating the obvious.

Yeah. Me too.

R:
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This community has written 22,499 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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