The Meb Faber Show · Friday, October 2, 2026
Meb Faber references Warren Buffett's 1984 letter, emphasizing that share repurchases are most beneficial when companies buy back their own stock at prices significantly below intrinsic value. Buying overvalued shares, conversely, can destroy shareholder value.
“When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.”
“If you're an overconfident CEO buying back overvalued shares, then you're destroying value.”