Author Topic: Berkshire 13F  (Read 8714 times)

Yours Truly

  • Sr. Member
  • ****
  • Posts: 389
Berkshire 13F
« on: May 15, 2013, 02:28:56 PM »
Increases:
WFC - 4%
IBM - 0.01%
WMT - 4%
DTV - 10%
USB - 0.3%
DVA - 10%
NOV - 41%
VRSN - 122%

WBC - 0.11%

Reducuctions:
BK - 4%
MDLZ - 45%
KFT - 4%

New positions:
CBI - 0.48% of portfolio
STRZA - 0.15% of portfolio


Palantir

  • Hero Member
  • *****
  • Posts: 2620
Re: Berkshire 13F
« Reply #1 on: May 15, 2013, 04:31:06 PM »
Somebody really likes NOV.....time to dig.
My Portfolio: AMZN, PAGP, FSLR, OKE, PYPL, RHT, MSFT

LC

  • Hero Member
  • *****
  • Posts: 2085
Re: Berkshire 13F
« Reply #2 on: May 15, 2013, 06:07:17 PM »
my thoughts as well...though i'm not sure it's one of warren's.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
------------------------------------------------------------------
brk.b | khc | nke | mo | renx | c | wppgy | dis | cmp

boilermaker75

  • Hero Member
  • *****
  • Posts: 840
Re: Berkshire 13F
« Reply #3 on: May 16, 2013, 08:17:33 AM »
From my one minute of due diligence I do not understand CBI, but STARZ looks interesting.

AchilliesValue

  • Jr. Member
  • **
  • Posts: 87
Re: Berkshire 13F
« Reply #4 on: May 16, 2013, 09:41:43 AM »
From my one minute of due diligence I do not understand CBI, but STARZ looks interesting.

Meryl Witmer who was recently named to the Board of Directors recommended it at the most recent Barron's Roundtable.

Quote
CB&I, or Chicago Bridge & Iron [CBI], trades around $47. It is an engineering and construction company that builds some of the largest energy and petrochemical-infrastructure projects globally. It also licenses process technology in the petrochemical, gas-processing, and refining fields. There will be significant infrastructure and manufacturing capacity built to take advantage of oil and gas shale production in the U.S. and natural-gas finds elsewhere. CB&I and Shaw Group [SHAW], which it plans to acquire, could be huge beneficiaries. After the deal is completed, there will be 110 million shares outstanding and $1.2 billion of net debt.

The crown jewel of CB&I is its Lummus Technology division, which licenses proprietary technology and garners an annuity-type stream of earnings. Lummus licenses the most widely used ethylene technology, and has about a 40% market share. It also licenses technology for other petrochemicals. CB&I's ability to provide both engineering and construction expertise and process technology is a competitive advantage.

Who are some of its customers?

Witmer: Westlake Chemical [WLK] and Williams Partners [WPZ] have announced plans to expand, and both have chosen Lummus. Dow Chemical [DOW], ConocoPhillips [COP], and ExxonMobil [XOM] are all planning major greenfield expansions later in the decade. Lummus is enjoying terrific growth. CB&I has guided analysts to expect operating income from Lummus of $225 million in 2013, up from $120 million last year and $96 million in 2011. This division alone may be worth $2.5 billion, or about half the equity capitalization of the entire company. In addition to petrochemical expansions, LNG [liquefied natural gas] export terminals and large-scale natural-gas processing plants are fertile ground for CB&I. The company is working on major LNG projects in Australia and western Africa.

With the tremendous amount of business coming up for bid, contract terms are improving across the industry. A dearth of fixed-price bids and an increase in less risky cost-plus contracts is a great development for companies such as CB&I, Bechtel, and Fluor [FLR]. To determine a run rate of near-term earnings potential, we calculated the pro-forma trailing 12-month earnings of CB&I and Shaw combined, and added some savings from synergies and the increase in Lummus earnings. That leads to $4.60 a share in after-tax free cash flow, supporting a price for CB&I at least 25% higher than the current one. If the stock were to trade at 13 times our earnings estimate, it would be about $60 a share. If you add CB&I's earnings projections, and Shaw's, all listed in the merger proxy filing, you get $8 a share of forecast earnings in 2016. We see the stock trading at about $100 at the end of 2015.

Hickey: How big a piece of CB&I will Shaw be? Shaw is struggling with two major nuclear power plants, which are experiencing delays.

Witmer: Shaw has an issue in Georgia. If it lost on every issue involving that plant, we estimate it would have a negative effect of $3 a share, versus what it would otherwise earn on the project. But it has a cost-sharing arrangement with Westinghouse on that plant, so things look OK. Shaw has already disclosed some information on its liability. Shaw is well regarded as a servicer of nuclear-power plants, and has a 40% market share, which has grown dramatically. Also, there is a labor shortage among sophisticated engineers.

educatedidiot

  • Jr. Member
  • **
  • Posts: 70
Re: Berkshire 13F
« Reply #5 on: November 14, 2017, 01:30:59 PM »
Berkshire's Q3 13-F is out: http://www.rocketfinancial.com/Holdings.aspx?id=1058&fC=1

We already knew they exercised those BAC warrants.  I thought it was interesting that it was the 3rd consecutive quarter with over 10 million shares of IBM sold.  Looks like they're completely liquidating the position -- it just takes time, even for a stock as liquid as IBM!

Jurgis

  • Hero Member
  • *****
  • Posts: 3546
    • Porfolio
Re: Berkshire 13F
« Reply #6 on: November 14, 2017, 02:24:56 PM »
It's interesting to see very little activity from T&T. They are usually more active.

educatedidiot

  • Jr. Member
  • **
  • Posts: 70
Re: Berkshire 13F
« Reply #7 on: November 14, 2017, 02:42:18 PM »
Jurgis,

I was thinking the same thing.  I think it's a sign of the times.  The market is frothy, and under Berkshire T&T have the luxury of being able to sit on their hands.

John Hjorth

  • Hero Member
  • *****
  • Posts: 1137
Re: Berkshire 13F
« Reply #8 on: November 14, 2017, 02:58:35 PM »
Jurgis & educatedidiot,

yes, agreed - very striking.

- - - o 0 o - - -

Personally, I'm a bit puzzled about the share count for the BAC position. 700 hundred million BAC shares aquired in the warrant swap, in the 13/F 21 million shares less reported. What's the explanation for this?
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

rolling

  • Newbie
  • *
  • Posts: 40
Re: Berkshire 13F
« Reply #9 on: November 14, 2017, 03:02:10 PM »
Berkshire's Q3 13-F is out: http://www.rocketfinancial.com/Holdings.aspx?id=1058&fC=1

We already knew they exercised those BAC warrants.  I thought it was interesting that it was the 3rd consecutive quarter with over 10 million shares of IBM sold.  Looks like they're completely liquidating the position -- it just takes time, even for a stock as liquid as IBM!
There might be some tax loss harvesting in IBM. Buffett said it would be stupid to sell now if they could pay less taxes later. The inverse works with the latest blocks of IBM, which are now certainly at a loss. However, it takes time to sell, especially since they are likely to be selling only when it comes closer to 160 and to stop when it is cheaper...

In addittion, they essentially switched IBM into Apple, thus maintaining their tech position (even if buffett considers Apple a consumer products business)
My usual portfolio: Highly concentrated (up to 3 or 4 positions) in smallcaps and microcaps.