As Warren Buffett seems to put Berkshire Hathaway's growing pile of cash to work, his next big investment may well be in his own company.
The possibility that Berkshire would buy back his own stock was a common topic for the discussion. Saturday as Buffett appeared before more than 40,000 shareholders at the center's CHI Health Center arena for Berkshire's annual meeting. The event was also livestreamed internationally both English and Mandarin.
Buffett had recently signed an interest in buying up as much as $ 1
"There is no master plan on anything but buying aggressively when we like the price," Buffett said at some point. "If it's underpriced, we'll take advantage of it."
Buffett spent more than five hours on Saturday, providing insights into Berkshire, finance, and financial markets, and handing out life councils. And while chairman Buffett is now 88, and vice president Munger checks in at 95, it didn't seem to have missed a blow in the past year.
Buffett seemed sharp as always, and filled his answers with his trademark and wisdom. And the right man Munger was often his usual dull self.
The meeting also remained largely Warren and Charlie Show. Although Buffett has nominated several top runners in recent years, and one of them will probably succeed him as Berkshire's next CEO and chairman – he and Munger took the stage alone, Buffett regularly slips off a Coke, Munger munching on See's Candies peanutbrittle.
When asked at some point why shareholders do not hear more from other Berkshire leaders, Munger said that it is largely a function of Berkshire's streamlined, unbureaucratic way of making decisions.
"You just have to endure us, Sa Munger.
When Buffett again gathered shareholders in his hometown for the annual Berkshire celebration of capitalism, it was not surprising that the first question he fell on Saturday was in stock purchases. To Buffet's recent comments, Berkshire sent a first quarter revenue report early on Saturday morning, showing that Buffett had bought back $ 1.7 billion over the first three months of this year.
Exceeded $ 1.3 billion in Stocks Buffett bought back in the whole of last year. In the previous five years, Berkshire did not buy anything back.
Share purchases are in some way a function of Buffett having had problems deploying Berkshire's growing pile of cash, which at the end of 2018 stood At $ 112 billion, while Buffett has been looking for an "elephant-size" corporate purchase for years, he has complained about the high prices of larger companies ls that can move the needle in Berkshire.
While there are many ways to spend Berkshire money, Buffett said Saturday, "using it intelligently is the problem."
Buffett said there was no magic in the $ 100 billion he threw out for repurchase, even though it is close to Berkshire's current cash account. He also did not say what price he would be willing to pay for the Berkshire stock, a secret he had to keep to avoid signaling future buybacks or affecting the price of the stock.
A questionnaire noted that the latest Berkshire repurchases came higher prices than the stock traded so recently as last December. Buffett acknowledged that he had previously suggested that he was marshaling cash at the time of an acquisition that fell, but he said he believes the shareholders still benefit from the latest buybacks, if not dramatically.
"We have no ambition … to spend a dime, unless shareholders are better off doing it," Buffett said.
A buyback obstacle is likely to be the loyalty of many Berkshire shareholders to the shares and Buffett, as evidenced by the thousands flocking to Omaha each year.
Buffett acknowledged that the company's "A" shares, like many of Berkshire's long-time investors like themselves, don't act often. But the creation of "B" shares many years ago makes stocks available on the market.
"There is no doubt we can spend $ 100 billion to repurchase shares, more of the money will surely be spent on B than the A," he said.
Buffett said that when Berkshire buys back shares, it must Ensure that all sellers, as Buffett considers business partners, have all the information needed to make informed decisions.  Berkshire Hathaway Q&A: Buffets on Success Plans, Bitcoin, Amazon, and Young Investor Advice "class =" img -responsive lazyload full "width =" 1763 "height =" 1175 "data-sizes =" auto "data-srcset =" https://bloximages.newyork1.vip.townnews.com/omaha.com/content/tncms/assets /v3/editorial/4/e3/4e3af5d3-83f6-5850-abfa-11e24e94a9da/5ccdb0731804c.image.jpg?resize=200%2C133 200w, https://bloximages.newyork1.vip.townnews.com/omaha.com/ content / tncms / assets / v3 / editorial / 4 / e3 / 4e3af5d3-83f6-5850-abfa-11e24e94a9da / 5ccdb0731804c.image.jpg? resize = 300% 2C200 300w, https://bloximages.newyork1.vip.townnews.com /omaha.com/content/tncm s / assets / v3 / editorial / 4 / e3 / 4e3af5d3-83f6-5850-abfa-11e24e94a9da / 5ccdb0731804c.image.jpg? resize = 400% 2C267 400w, https://bloximages.newyork1.vip.townnews.com/omaha .com / content / tncms / assets / v3 / editorial / 4 / e3 / 4e3f5d3-83f6-5850-abfa-11e24e94a9da / 5ccdb0731804c.image.jpg? resize = 540% 2C360 540w, https://bloximages.newyork1.vip. townnews.com/omaha.com/content/tncms/assets/v3/editorial/4/e3/4e3af5d3-83f6-5850-abfa-11e24e94a9da/5ccdb0731804c.image.jpg?resize=750%2C500 750w, https: // bloximages .newyork1.vip.townnews.com / omaha.com / content / tncms / assets / v3 / editorial / 4 / e3 / 4e3af5d3-83f6-5850-abfa-11e24e94a9da / 5ccdb0731804c.image.jpg? resize = 1200% 2C800 1200w, https://bloximages.newyork1.vip.townnews.com/omaha.com/content/tncms/assets/v3/editorial/4/e3/4e3af5d3-83f6-5850-abfa-11e24e94a9da/5ccdb0731804c.image.jpg?resize= 1700% 2C1133 1700w "/>