When a company should buy back shares


So, according to Warren Buffett, a company can add value to its shares by buying some of them back:
  1. where it has surplus funds;
  2. where it can buy them back at a price below intrinsic value.
Warren Buffett has said on several occasions, in relation to Berkshire Hathaway, that the company will never buy back shares merely to bolster the share price or to stop a fall in the price.