Berkshire still won’t repurchase stock if doing would reduce its cash holdings below $20 billion. Given the huge sums in its coffers, however, that’s not likely to pose much of a constraint, according to Morgan Stanley analysts.
At this year’s shareholder meeting in Omaha, Buffett said, “We’re never going to do anything that we think is harmful to continuing shareholders. So, we think the stock is intrinsically worth X, and we would have to pay some multiple—some modest multiple, even above that—to repurchase shares.”
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