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Berkshire Hathaway (BRK.B) is halted from trading pending news.

Berkshire Hathaway (BRK.B) is halted from trading pending news.
Comments (10)
  • This normally is not good, but with Buffet in charge should be positive. May announce a buy back or something to that effect. I doubt will be a special div.
    12 Dec 2012, 09:45 AM Reply Like
  • They bought back 9,200 shares of class A stock.
    12 Dec 2012, 09:50 AM Reply Like
  • They bought back more shares from one person than Charlie Munger is reported as owning. The number of shares bought back is about 40% of what Warren Buffet is reported by Yahoo! finance as owning....

     

    This is a $1 billion-plus purchase and is a BIG deal, because it takes a lot of shares off the market and marks a change in the company's policy limit for share repurchases to 120% of book. That's a pretty high number for repurchases.

     

    I'm also curious why it was done. I would think it was because Warren Buffet does not like the idea of those shares getting into multiple person's hands, and that could cause irregularities in how votes are cast for company policy. Mr. Buffet anted up a little more cash to be able to eliminate that problem. Kudos to him if that's what he did, and it would be yet another example of a well-run business doing what it feels is in its best interests.
    12 Dec 2012, 09:55 AM Reply Like
  • If it is 9,200 shares, at $138,000 a share, that is $1.2696 billion.
    12 Dec 2012, 10:55 AM Reply Like
  • one person? did they say who?
    12 Dec 2012, 11:57 AM Reply Like
  • They probably won't say who, only that they bought the shares from a long-time investor's estate. That's pretty large chunk of the company's value in total.

     

    Of particular interest is that the company had to change it's policy of how much above book-value that it would pay for the shares. That's an important indication of both how much BRK thinks it's shares are really worth, and also how badly they wanted those shares to NOT be publicly held by the person(s) who were going to get them.
    12 Dec 2012, 12:05 PM Reply Like
  • Why not just let the person sell them on the open market? If the stock price goes down, so what ... BRK could purchase them for less? I do not understand this?
    12 Dec 2012, 01:32 PM Reply Like
  • It was the person's estate, so a long time owner (apparently a billionaire) has passed away.
    12 Dec 2012, 02:02 PM Reply Like
  • Its better for share holders to purchase back stock tax free to owners rather than let the money just sit or paying a dividend with it.
    12 Dec 2012, 02:01 PM Reply Like
  • Berkshire doesn't pay a dividend and likely never will. Based on this, the money that would 'sit' is actually plugged back into companies as further investment or used to buy other companies.

     

    I also don't understand the shareholders purchasing stock tax free. Warren Buffet has purposely stated that he doesn't like paying more than book value for his own stock, and doesn't like a POLICY of share buybacks for any reason. The announcement of 120% of book price for buying back shares is a surprise.

     

    I really think, as I've stated before, that the reason for the buyback is because whoever was going to get the shares in the estate is someone (or multiple someones) that Warren Buffet doesn't want having that much control in his company. When someone (Buffet) is forced to buy something for a specific purpose, the purchase becomes more expensive. I'm sure Warren Buffett sweetened the deal for the benefactor(s) of the estate in order to buy them out at an acceptable price to the benefactor(s) and at the same time allowing Warren Buffett to keep as much control of his company as possible.

     

    People who run companies like Warren Buffett do not like outsiders who may have wacky ideas or proposals having any clout in their company. People like that want things done a certain way, and don't like those who rock the boat, and are willing to pay a premium in order to buy out persons who would be boat-rockers.
    13 Dec 2012, 09:56 AM Reply Like
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