The Benefits of Repurchasing Shares

Mr. Buffett: If you're repurchasing shares above a rationally calculated intrinsic value, you are harming your shareholders. We favor using funds generated at that business to make the business even more wonderful. Mr. Munger: People who didn't understand Coca-Cola or who thought mechanistic methods of valuation should take precedence really misjudged the value to the Coca-Cola company.