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- Manlobbi
Investment Strategies / Mechanical Investing
No. of Recommendations: 23
Looks like about 19 days in a row that the A share price has been below the likely price of the buybacks on March 4, for at least part of the trading day. So I imagine they have been in the market buying, at least some.
I assumed that the buyback that day was around the average price of the day, which was about $729500.
For this purpose, a conversion of 1500:1 for B share buybacks doesn't seem to be appropriate. Management prefers A shares for buybacks and doesn't seem to buy B shares unless prices are both cheaper (relatively) and quite cheap (in an absolute sense, perhaps to take advantage of the liquidity to buy more shares). So I would NOT assume that management would be happy to buy B shares at 729500/1500. My guess is that a notional "happy with a B buyback at that time" might be more like (say) $475 per B instead of $486.
A share is worth more each day, so one might assume the target rises commensurably over time. But it probably also moves up and down even more sometimes with changing prospects of other opportunities, present and future.
Jim
No. of Recommendations: 1
For this purpose, a conversion of 1500:1 for B share buybacks doesn't seem to be appropriate. Management prefers A shares for buybacks and doesn't seem to buy B shares unless prices are both cheaper (relatively) and quite cheap (in an absolute sense, perhaps to take advantage of the liquidity to buy more shares). So I would NOT assume that management would be happy to buy B shares at 729500/1500. My guess is that a notional "happy with a B buyback at that time" might be more like (say) $475 per B instead of $486.
Wouldn't you expect arbitrage of some sort to close that gap whenever it's larger than, let's say, 2%?
Elan
No. of Recommendations: 1
Wouldn't you expect arbitrage of some sort to close that gap whenever it's larger than, let's say, 2%?
I'd expect arbitrage to keep the two share price ratios in the rough vicinity of the economic interest ratio of 1500:1, yes.
But that's a different question from what the preference of head office might be when contemplating buybacks on any given day. They prefer A shares. Wasn't a 3% premium mentioned in the owner's manual?
Jim
No. of Recommendations: 5
Looks like about 19 days in a row that the A share price has been below the likely price of the buybacks on March 4, for at least part of the trading day. So I imagine they have been in the market buying, at least some.I assumed that the buyback that day was around the average price of the day, which was about $729500.
21 days at $200M per day, could be $4.2B in buybacks. $220M/day = $4.6B
Gemini says $41.16B traded over the last 21 trading days. I did not verify.
I doubt they bought back 10% of volume though. Safe Harbor rules might allow up to 25% of daily volume.
No. of Recommendations: 3
Jim: For this purpose, a conversion of 1500:1 for B share buybacks doesn't seem to be appropriate. Management prefers A shares for buybacks and doesn't seem to buy B shares unless prices are both cheaper (relatively) and quite cheap (in an absolute sense, perhaps to take advantage of the liquidity to buy more shares). So I would NOT assume that management would be happy to buy B shares at 729500/1500. My guess is that a notional "happy with a B buyback at that time" might be more like (say) $475 per B instead of $486.
Berkshire Hathaway Inc Class B $474.82 as I write...
No. of Recommendations: 2
"Berkshire Hathaway Inc Class B $474.82 as I write..."
Since March 31st I've plunked down quite a lot on B's. I've made 8 transactions, Highest purchase price $477.95, lowest purchasing price $472.87
No. of Recommendations: 7
Since March 31st I've plunked down quite a lot on B's. I've made 8 transactions, Highest purchase price $477.95, lowest purchasing price $472.87
I purchased a few more shares on Friday at $477.20 (my highest purchase price ever). I am still convinced of the thesis that there is a "floor" of sorts on the share price now that buybacks have officially resumed.
I'm trying to find ways of reducing interest received in 2027, and this money would normally have gone into a T-bill or a CD maturing sometime in early/mid 2027. Instead I figure I'll put it into Berkshire ... if 2027 comes along, and I need cash, I can sell a few shares on or after April 19th, 2027 and it'll count as long-term gains (or somewhat unlikely as long-term losses). I will probably be doing this repeatedly this year. I may also sell close-to-the-money puts to accomplish the same thing.
No. of Recommendations: 1
I purchased a few more shares on Friday at $477.20 (my highest purchase price ever). I am still convinced of the thesis that there is a "floor" of sorts on the share price now that buybacks have officially resumed.
It does seem to be hanging around the $475 mark, plus or minus a percent or two.
But if something really bad kicks off I expect it will go down with the market, and Berkshire's bids will fade.
No. of Recommendations: 1
I seem to think its in a buyback blackout period 10 days before the meeting
No. of Recommendations: 0
I seem to think its in a buyback blackout period 10 days before the meeting
According to Google:
Berkshire Hathaway does not appear to follow a strict, public-facing blackout period for stock buybacks, such as the common "two weeks before quarter-end" rule. Instead, the company operates under a policy that allows for repurchases to be made at any time management believes the share price is below its intrinsic value, conservatively determined.
No. of Recommendations: 1
AdrianC, good morning partner.
Does it appear to you that brk is currently suffering from a lack of demand for the common?
The other day I saw a technical analyst who was discussing the financial index the largest holding is brk followed by jpm.
I wonder how many of the stocks in the top ten in that index don't pay a div?
Thank you. Hey, what's BV today? :)
No. of Recommendations: 1
I seem to think its in a buyback blackout period 10 days before the meeting
Follow up: Recent price action does make one wonder - has a large buyer been absent from the market the last few days?
Been sitting on some cash for quite a while...$460 would be my break-even-feel-good level.
