Urbana continues to have its discount to its reported net asset value expand. It’s up to a massive 50%!
In September 2011, Buffett announced a buyback that will continue ‘indefinitely’.
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When Berkshire shares fall below 110% of book value the company will buyback an unlimited number of shares. There are caveats such as not reducing Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B)’s cash below $20b and it being dependent on the attractiveness of other investments but for all intents and purposes it is an extremely serious indication to the market that management thinks the stock is cheap and will take strong actions to reduce the discount to its intrinsic value. Since the announcement Berkshire has very rarely traded below the buyback level.
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