Berkshire Hathaway CEO Warren Buffett published his annual letter to shareholders last Saturday and as usual, it packs the witty, wise and sometimes unpopular view.
On repurchases, he explains why they should be value-accretive (meaning increase in value), “Every small bit of repurchases helps if they are made at value-accretive prices. Just as surely, when a company overpays for repurchases, the continuing shareholders lose. At such times, gains flow only to the selling shareholders and to the friendly, but expensive, investment banker who recommended the foolish purchases”.
