Warren Buffett, the stock market's most-revered bargain hunter, thinks his own stock is the sweetest deal available—the latest sign that many big U.S. companies have more cash than they know what to do with.
Berkshire Hathaway Inc., the holding company run by the billionaire investor, took a step Monday toward repurchasing what could amount to tens of billions of dollars' worth of its own shares.
In a share repurchase, or buyback, a company takes some of its shares off the market by buying them from outside investors, which gives remaining holders a larger proportionate stake in the company's future earnings.
Buffett has often been critical of buybacks motivated by, as he wrote in his 1999 letter to shareholders, an "ignoble reason: to pump or support the stock price." But when a company's shares are cheap enough, he argues, buying them back is good for shareholders….
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