Well the Oracle from Omaha has decided to buy back shares in himself. Berkshire Hathaway that is (NYSE:BRK.A) Quite the swan song move in the twilight of a brilliant investing career. Buffett has signalled that his trigger finger is itchy with over $40 Billion in unused cash. Despite a bizarre desire to pay more taxes the ultimate value investor does not see adequate investment bargains out there. I’m sure he looked. He even cold called Bank of America (BAC) but they could only take up $5 billion.
The share buy back strategy begets a few questions. He plans on giving most of the shares to charity but in the mean time he starts the buy back thing. So all those deserving causes will get a little bit less. I assume that he will not take any cash himself letting the market enjoy the cash. But Warren if you can’t figure it out us little folks don’t have a chance.
Also is he secretly saying his replacement players will not be able to identify value plays and the cash has to come off the table. A shrink might say he is protecting his reputation. The successors will not have the cash to do the deals. Hmm.
Is this a secret message to value investors. There is nothing out there of any consequence. Except for Berkshire. Hmm reverse psychology with the investor relations program which he claims he does not really have. Quite the poker move in some ways. If you know Berkshire is looking at you know you have some competition so maybe the big buck buyout is not coming that quickly.
Disclosure : George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.
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