Post #7218 by Aussi on the Berkshire Hathaway board

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

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If you mean buy S&P 500 or a total market indexed ETF, I would suggest repurchasing shares at current prices would be a better move. It may not be as cheap as it was a year or so ago, but I would argue still better value than the S&P 500.

I am unsure how buybacks affect future returns. Is there an equation that shows the long term expected value of buying back shares? If I invest in SPY, an assumption could be made that it will return say inflation plus say 5% forever. What is the expected future return to the shareholder for a buyback of BRK? I understand it lifts the current stock price, but does it affect the future stock price compared to not doing a buyback?

Aussi

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