Warren Buffett author and chief investment strategist at Legg Masson Capital, Robert Hagstrom, was on Bloomberg to discuss his views on Buffett's recent big share buyback.
-- Buffett did not overpay; intrinsic value is much higher than where the stock is at this time.
-- Berkshire book value is much lower than intrinsic value so he has still bought the stock at value lower than the fair value of Berkshire.
-- Even paying 20% above book value is still buying at a discount, but above all it is a signal that intrinsic value has grown at a faster rate.
Here is the video: