- where it has surplus funds;
- where it can buy them back at a price below intrinsic value.
Saturday, 25 February 2012
When a company should buy back shares
So, according to Warren Buffett, a company can add value to its shares by buying some of them back:
Warren Buffett has said on several occasions, in relation to Berkshire Hathaway, that the company will never buy back shares merely to bolster the share price or to stop a fall in the price.