Tobias ReisnerCommunity

@reisnertobias

At Berkshire Hathaway’s 1998 annual meeting, Warren Buffett was asked by @BillAckman what he thinks about Coca Cola buying back their own shares at a 40 P/E. Buffett’s immediate response was not that 40× was cheap. He said it “sounds like a very high price” in P/E terms. Nevertheless, he approved Coca-Cola’s buybacks because he considered Coke an exceptional, durable business and judged buybacks preferable to its other uses of capital. He explicitly preferred 15× earnings and said that, at 20×, he would hope Coke borrowed heavily to buy more. He also said the conclusion did not apply to many companies. For Hyperliquid, a conventional equity P/E does not exist: HYPE is a token, not a share with audited net income or a contractual dividend claim. The closest economic analogue is token value ÷ protocol earnings routed to token-holder buybacks. On that basis, the current answer depends critically on the denominator: If you take FDV Hyperliquid is >70 P/E If you take marketcap Hyperliquid is at 15 P/E. There is one clear difference: HYPERLIQUID buys back their own token programmatically because they understood it’s the best use of capital. Al current token holders benefit because their % of shares go up over time. Tokens bought back = Tokens out of supply

Tuesday, August 18, 2026 at 11:59 AM UTC