Henry Singleton, Teledyne’s legendary chief executive, was a gifted capital allocator who created enormous shareholder value. Warren Buffett is a great admirer of Singleton and believes, “Singleton of Teledyne has the best operating and capital deployment record in American business.”
Singleton’s repurchases at Teledyne shed light, I believe, on what Buffett is doing at Berkshire. Financial journalists writing about Berkshire’s recently announced share repurchase policy – now actively underway – are often ill-informed and sometimes clueless.
The following article provides a good overview of Singleton’s record of capital allocation and will give you insight on how to think about and value Berkshire Hathaway’s stock, particularly as it regards the addition of share repurchases to Buffett’s capital allocation toolbox.
See previous blog post: Henry Singleton: A Master of Capital Allocation