At the upcoming Berkshire Hathaway annual meeting on Saturday, May 5, approximately 40,000 shareholders are expected to attend. Issues that are likely to be discussed at this meeting include: Warren Buffett’s health (prostate cancer diagnosis), the valuation of Berkshire Hathaway stock, the performance of recently hired portfolio managers Todd Combs and Ted Weschler, and Berkshire’s large investment in IBM.
I was quoted in a Bloomberg article on this topic:
The stock currently trades at 120 percent of book value, in spitting distance of when Berkshire will consider buying back shares, a move that increases the per-share earnings of remaining shares. “For someone who purchases today, the company is saying it will step in and repurchase shares at just 10 percent below its current level,” notes David Kass, who teaches finance at the Robert Smith School of Business at the University of Maryland and closely follows Berkshire.
University of Maryland’s Kass also points out that Buffett has long known what to look for when it he goes shopping. “He bought companies with durable competitive advantages,” says Kass.“That doesn’t disappear overnight.”
The entire article is available at: