Business

Buffett touts the benefits of buybacks in his shareholder letter


OMAHA, Neb. (AP) — Billionaire Warren Buffett says critics of stock buybacks are “either an economic illiterate or a silver-tongued demagogue” or both and all investors. Everyone benefits from them as long as they are executed at the right price.

Buffett used part of his annual letter to shareholders of Berkshire Hathaway on Saturday to tout the benefits of an acquisition that scathing Wall Street critics like Sens. Elizabeth Warren and Bernie Sanders and many other Democrats love to criticize. The federal government even added 1% tax on acquisition this year after they skyrocket to about $1 trillion by 2022.

“When you are told that all acquisitions are harmful to shareholders or the country, or especially beneficial to CEOs, you are listening to either an economically illiterate person or an investor. silver-toned demagogues (characters are not mutually exclusive),” wrote Buffett, a longtime Democrat himself.

Buffett said Berkshire’s remarkable record of doubling S&P 500 returns over the past 58 years under his leadership is the result of only “about a dozen really good decisions — that is, every 5 years there is a decision.”

He recounted a few of them in his letter, but kept his message – long one of the most widely read in the business world – very succinctly this year with a little over eight pages. And he dedicated a whole page to the memory of his 99-year-old partner Charlie Munger.

“I think investors – whether they’re investors in Berkshire or just students at Berkshire – look to him more and I think they can,” said Cathy Seifert, analyst at CFRA Research. Will want more.”

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