SNOW - Recent Buybacks Hint At An Evolving Buffett View That Could Greatly Juice Berkshire's Value

• Extrapolating from his June 21 13D filing, Warren Buffett appears to have bought back an additional $5 billion of Berkshire stock between April 22 and June 21.
• That suggests the possibility of $13.5 billion by midyear leading to speculation that Buffett thinks Berkshire is cheap; there's a more interesting possibility, however.
• Buffett has praised Tim Cook's Apple buybacks at a time when Apple was clearly expensive but he has been slow to do the same himself.
• Buybacks differ from buying stocks; the price paid is only one factor among the many powerful advantages in buying back one's own stock with cash.
• Buffett may be ignoring Berkshire's rising price because buybacks contribute powerfully to right-sizing cash, improving ROE, and providing a "dividend" to those who want one.

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