4min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP346: Masterclass in Valuation w/ Chris Bloomstran

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

How to Retire More Shares

The larger the premium that you pay, the more decline you're going to see in book value per share. If Berkshire can buy their shares back between 100% of book and 150% of book, they're going to retire somewhere between 25-40% of their outstanding shares over the next 10 years. But if those repurchases take place at sufficient discounts to intrinsic value, but are made at premiums to book value, then the book value will not grow as fast.

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