"In no way do we think that Berkshire shares should be repurchased at simply any price. I emphasize that point because American CEOs have an embarrassing record of devoting more company funds to repurchases when prices have risen than when they have tanked. Our approach is exactly the reverse."<p>For many companies, the approach seems to be "we've paid our dividends, we have some cash left over, let's buy back our own stock" - with a complete disregard for the valuation. Buying your own shares at too high a price (see GE and US airlines) is equivalent to incinerating money, whereas buybacks at low prices (Teledyne, Apple) do wonders for returns. If you run a listed business you have to think long and hard about what your firm is worth without just looking at the market price. William Thorndike's book "The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success" [0] makes that point beautifully<p>Right now it is interesting to observe that many companies are doing the opposite of buybacks at a record clip, the share issuance of firms like Twillio is astounding.<p>[0] <a href="https://www.goodreads.com/book/show/13586932-the-outsiders" rel="nofollow">https://www.goodreads.com/book/show/13586932-the-outsiders</a>