Berkshire Hathaway, Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO and Chairman Warren Buffett slammed people who oppose share buybacks in its annual letter to shareholders, released Saturday.

What happened: “When you’re told that all buybacks hurt shareholders or the country, or are particularly good for CEOs, you’re either listening to an economically illiterate or a well-spoken demagogue,” Buffett said.

The statement came as the billionaire philanthropist discussed Berkshire’s 2022 financial results. He noted that 2022 would see very little earnings per share from Berkshire’s buybacks throughout the year and also from share repurchases through its holdings apple inc AAPL And American Express company AXP.

Berkshire said in its earnings report that it repurchased $2.6 billion of stock in the fourth quarter.

By buying back 1.2% of Berkshire’s stock in 2022, the company directly increased shareholder interest in the company, while share buybacks from Apple and American Express increased Berkshire’s ownership stakes in the two companies at no associated cost, he added added.

See also: What is a share buyback

Value-added vs. value-destroyed buybacks: However, the billionaire cautioned that buybacks should be made at value-adding prices. However, when a company pays too much for buybacks, remaining shareholders lose out, he noted. “At times like this, profits flow only to the selling shareholders and to the friendly but expensive investment banker who recommended the stupid buys,” he added.

Gains from appreciation buybacks benefit all owners in every way, Buffett said. He also mentioned a scenario where there are three fully informed shareholders in a local car dealership, one of whom runs the business.

If one of the passive owners wished to sell their stake back to the company at a price attractive to the two remaining shareholders, the transaction would not hurt…