Monday , August 15 2022

"Buffet Put": Warren Buffett Stock Reports Strategy | Message


Warren Buffett's current asset returns the right to find a way out of the crisis to buy back its own stocks. For this, American Star Investor's holds a previous purchase-back limit. The authentic book value of the stock price will be more than 20%.

"A clear signal"

Such concessions are welcomed by many owners of Berkshire Hawthah, as Warren Buffett and Vice-Charlie Munber have the strongest faith in mind. "This is a clear signal because the company does not get any assessment of Buffett and Mungan," said Henry Muhlee, fund advisor of the Assets Guy Value Event Fund.

Money does not matter

Unlike some fund managers, Buffett does not mind to pay for new investments to invest in new investments, or buying purchase back ups. Berkshire's subsidies for the year are about 20 billion dollars a year. Thus, investors who have hold of $ 100 billion have been awarded.

Buffett's buy-back philosophy

"Regardless of the purpose of each equity owner decided to sell in today's background, benefits from all of the buy, but the way of the repurchases will be charged a fine instead of the internal value of the purchase of existing shares in the owner of the $ 1.10 dollars. That's a good thing nirbandhitarayavarkk," Buffett, referring to the measures of the program you want to buy a stake in 2000, Said.

Hit stock at the US record level

In 2018 alone, US corporations will rebuild $ 1 trillion share and double to $ 589 billion in 2007. The major reason for such massive programs is the US tax reform. This is because of the low corporatisation rate and it is getting a lot of liquidity.

Buffett is not an admirer of programs that really get back

However, Buffett criticizes these buybacks training by US companies. Such purchasing programs do not always offer the largest collective value of ownership in Star Inventor's view. Buffett is often thought to be a reassessation of American corporations. The rigid rules of rubber programs that exist in certain companies require monthly owners to buy a fixed number of shares to get back to their flat rate. However, if anyone buying shares or anyone else does not look for any favorable position, it is at risk that will further affect its stake.

To avoid such errors, the star investor in Omaha goes to a very different way. Buffet is predetermined, the possible purchase charges can only be applied to some address tags. To determine this limit, Buffett was oriented to the book value of his holding. Validation will only be taken back if the investor speaks for an investment. This approach gives a maximum added value to the shareholder shareholders.

A major tax benefit

For owners of the Berkshire Whitewater, such a stock purchase is not just the back of the cosmetic perspectives but from tax perspective. When a capital gains tax as part of dividend distribution, you can buy a stake when you are paying taxes.

"Buffet Put"

Many Berkshire Hathaway shareholders and Star Investor's share reputation strategy are called a special hudge. They assume that the back-up stock will never allow for a fixed period before determining the price. However, Star Investor itself does not admit this thesis himself.

Pierre Bonnet /

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Image sources: Daniel Zuchnik / WireImage, Paul Morigi / Getty Images for Fortune / Time Inc

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