A repurchase creates value only below a conservative estimate of intrinsic value, and destroys it above.
Judge a chief executive by what they do with the cash, not by how well they run what produces it.
Private equity interviews, assessing a management team, and any question about buybacks, dividends or acquisitions.
From The Outsiders · William N. Thorndike
Publish the method for intrinsic value, then let it decide: buy back below it, issue above it, and keep the multiple consistent so the method cannot flatter.
Valuing a holding company or an insurer with an investment portfolio, and any discussion of how management should decide on buybacks.
From Markel Group's 2023 letter to business partners · Thomas Gayner
A buyback creates value only with funds to spare and a price well below intrinsic value; above that price the same action destroys it.
Any capital allocation question, any company announcing a buyback, and private equity interviews on value creation.
From Berkshire Hathaway's 2011 letter to shareholders · Warren Buffett