The Essays of Warren Buffett: Lessons for Corporate America, Third Edition

Charlie and I favor repurchases when two conditions are met: first, a company has ample funds to take care of the operational and liquidity needs of its business; second, its stock is selling at a material discount to the company’s intrinsic business value, conservatively calculated.

Wall Street welcomed this invention with

Once such an everybody’s-doing-it attitude takes hold, ethical misgivings vanish.