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:
About the author:
Dheeraj GroverI am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne