Dissecting Berkshire's Big Buyback

In the video below, Fool analyst Matt Koppenheffer dissects the recent buyback of shares by Warren Buffett's Berkshire Hathaway.

Reports say the $1.2 billion buyback has all been from shares from one longtime Berkshire shareholder.

This is not the ideal way for Berkshire to be buying back shares. Koppenheffer would rather see the company going on the open market and buying back the traditional way.

Investors should also consider the reasons behind the buyback. Koppenheffer thinks that Buffett has become more bullish on his own company because he does not see many other good opportunities right now for Berkshire to use its cash.

Overall, though, he sees the buyback as a good move that will benefit investors. Berkshire remains a great collection of business and a good investment with great management. 

No matter what you think of the recent $1.2 billion buyback, Warren Buffett's long track record of success has made him one of the best investors of all time. With the Buffett at the helm, Berkshire Hathaway has grown book value per share at a compounded annual rate of 19.8% for nearly 50 years! Despite an incredible historical track record, investors have to understand the key issues to watch moving forward. To help investors, The Fool's resident Berkshire Hathaway expert Joe Magyer has created this premium research report on the company. Inside, you'll receive ongoing updates as key news hits, as well as reasons to both buy and sell the stock. Claim a copy by clicking here now.

 


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Related Tickers

11/28/2014 1:00 PM
BRK-A $223065.00 Up +654.00 +0.29%
Berkshire Hathaway… CAPS Rating: ****
BRK-B $148.69 Up +0.50 +0.34%
Berkshire Hathaway CAPS Rating: *****

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