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yes um Bill Ackman from New York uh are there is there a price at which it's inappropriate for a company to use its capital buyback its stock give me that again Coca-Cola at uh 40p is that a smart place for Coke to deploy Capital well it it sounds like a very high price when you name it in terms of a PE to buy back the stock at at uh that sort of number but I would say this uh Coca-Cola's been around 100 and 12 years now and uh there's very few times in that 112 years if any when it would not have been smart for Coca-Cola be repurchasing your shares Coca-Cola is probably in my view among businesses that I can understand it's the best large business in the world I mean it is a fantastic business and uh we love it when Coke repurchases shares and our interest goes up we owned 6.3 percent of Coca-Cola in 1988 when we bought in we actually increase that a little bit a few years later but if they had not repurchased shares we probably would own about 6.7 or 6.8 percent of coke now as it is we own a little over eight percent uh through repurchases uh they're going to be about a billion eight ounce servings of coke sold around the world or Coca-Cola products sold around the world today uh eight percent of that is 80 million and 6.8 percent of 68 million so they're 12 million extra servings for the account of Berkshire Hathaway being sold around the world and they're making a little over a penny a serving so you know that that gets me kind of excited and I I think it all I can tell you is I approve of of coke repurchasing shares I'd rather have them repurchasing shares at at 15 times earnings but but when I look at other ways to use capital I still think it's a very it's a very good use of capital and maybe the day will come when they can buy it at 20 times earnings and if they can I hope they go out and borrow a lot of money to buy a ton of it at those prices and uh I think we will be better off 20 years from now if Coke follows a consistent repurchase approach I do not think that is true for many companies I mean I think that repurchases have become in Vogue and done for a lot of silly reasons and uh so I I don't think everybody's repurchase of shares uh is well reasoned at all uh uh you know we see companies that issue options by the ton and then they repurchase shares much higher you know I started reading about Investments when I was six and I think the first thing that I read was you know Buy Low sell high but these companies through their options you know they sell low and then they buy high and they've got a different formula than I was taught uh so there are a number that we don't approve of it when we have when we own stock in a wonderful business uh we we like we like the idea of repurchases even at prices that uh that may give you nosebleeds it generally turns out to be a pretty good policy Charlie well I think the answer is that in any company the stock could get to a price so high it would be foolish for the corporation to repurchase its shares sure and you can even get into gross abuse before the crash the insole utilities were madly buying their own shares as a way of promoting the stock higher it was like a giant Ponzi scheme at the end so there's all kinds of excess that's possible but the really great companies that buy a high price earnings where that's that can be wise our interest in Geico went from 33 to 50 percent without us laying out a dime because Geico was repurchasing its shares and uh we've benefited substantially but we benefited a lot more obviously when prices were were lower I mean we would we would our interest in the Washington Post company has gone from nine in a fraction percent to 17 in a fraction percent over the years without us buying a single share but the post or Coke or any number of companies don't get the bargain in repurchasing now that they used to uh we still think it's probably the best best use of money in many cases
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