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Buffett believes buybacks are beneficial to shareholders for one simple reason: You don't need to spend a dime to increase your percentage of shares held. "Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns," Buffett said in his 2021 annual letter. The 93-year-old legendary investor believes that it would be "value-destroying" if he overpaid for Berkshire shares. "If you're repurchasing shares above a rationally calculated intrinsic value, you are harming your shareholders, just as if you issue shares beneath that figure, you are harming your shareholders," Buffett once said in 1996. The Wall Street firm projected that Berkshire repurchased almost $2.5 billion worth of stock in the second quarter.
Persons: Berkshire Hathaway, Warren Buffett, Greggory, Buffett Organizations: Morningstar, Oracle, Berkshire, Berkshire Hathaway, UBS, Street, Berkshire repurchased Locations: Greggory Warren, Berkshire, Omaha, repurchases
Doing a sum-of-the-parts analysis of Blackrock's ETF business would be a difficult endeavor, but certainly revenue, assets under management (AUM), and growth potential are important factors. So the iShares ETF revenue was about a third of Blackrock's revenue, and Warren said that segment is still growing. By any metric, Blackrock's ETF business just keeps getting more valuable. The entire ETF business is growingBlackrock's ETF business is a gold mine, but total AUM for the entire ETF business now a bit over $9 trillion, which means Blackrock and a few rivals control a staggering amount of ETF investment dollars. The search for new revenue is endlessThe ETF business is still raking in money, but there is tremendous fee pressure across the entire ETF universe, so the search for more revenue goes on.
Persons: Larry Fink, Greggory Warren, Warren, Schwab, Fink, " Fink Organizations: BlackRock, Barclays, Morningstar, Blackrock, Investors Locations: BlackRock, Manhattan, New York City, Blackrock, United States, London, Canada, U.S
Thanks to a surge in bond yields, Berkshire's cash, which was mainly parked in short-term Treasury bills, grew to a record level of $157.2 billion. These lucrative government bond investments in turn boosted Berkshire's insurance empire, via so-called float. Berkshire's insurance businesses saw a profit of $2.42 billion last quarter, compared with a loss in the prior-year period. Net seller of stocks Berkshire was a net seller of publicly traded stocks in the third quarter, buying $1.7 billion worth of equities while selling nearly $7 billion. One notable move was that the conglomerate sold about $2 billion worth of Chevron shares.
Persons: Warren Buffett, Berkshire Hathaway, Bill Stone, Greggory Warren, Brian Meredith, Meredith Organizations: Glenview Trust, Morningstar, BNSF, Chevron, Berkshire, UBS Locations: Berkshire, Omaha, Omaha , Nebraska, Knox, Glenview
Every so often, a hot new investor on the rise is crowned "the next Warren Buffett" by the financial media, followed swiftly by disappointing performance that proves they're no "Oracle of Omaha." "The next Warren Buffett" remains Warren Buffett alone. What makes Buffett so hard to duplicate? That makes Buffett, famously a student of Columbia University's legendary value investing professor Ben Graham, the most venerated investor of his, or succeeding, generations. "Berkshire's economic moat is more than just a sum of its parts," said Greggory Warren, Berkshire analyst at Morningstar.
Persons: Warren Buffett, Sam Bankman, Buffett, Pershing, Bill Ackman, Eddie Lampert, Chamath, Berkshire Hathaway, LBJ, Ben Graham, Greggory Warren Organizations: Berkshire Hathaway, BNSF Railway, Apple, Columbia, Morningstar, Berkshire Locations: Omaha, Berkshire, New England
Warren Buffett's long history of aiding failing banks is one reason for investors to buy Berkshire Hathaway shares now, in the midst of the latest banking blowup, according to Morningstar. "Another banking crisis, another call to Buffett," Morningstar analyst Greggory Warren said in a note Monday. The legendary investor has been a white knight for troubled banks on other occasions. Buffett also famously came to Goldman Sachs' rescue with a $5 billion cash infusion after the collapse of Lehman Brothers in 2008. The analyst said Berkshire shares are appealing right now and could serve as downside protection given its diverse businesses and unmatched balance sheet strength.
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