Author Topic: Berkshire ability to use cash  (Read 1906 times)

globalfinancepartners

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Re: Berkshire ability to use cash
« Reply #10 on: February 12, 2018, 04:59:16 AM »
I think what he's saying is that the structure makes it less likely that Berkshire will be broken up through the use of tax-free spin offs, which is how many people envision the 'breakup' going.  The atypical organizational structure probably benefits Berkshire in several ways directly, but Buffett might also like that it makes it harder for an activist to come in a mess up his painting for a quick pop.  A taxable cash sale of BNSF for $100 Billion [UNP's market cap] is a harder sell for the activist folks.  BTW, remember when even Buffett loving professors and commentators were lamenting his overpaying at $34 Billion for BNSF?

Happy Lundi Gras!  Berkshire fans will be happy to know that several stuffed animals thrown at parades yesterday were products of the Oriental Trading Company, Omaha NE...  So OTC has successfully entered that lucrative Mardi Gras market.


longinvestor

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Re: Berkshire ability to use cash
« Reply #11 on: February 12, 2018, 09:20:25 AM »
Breaking up of Berkshire is currently rendered impossible by the voting rights regime. Based on comments made by Buffett @ the meeting, something is in the works with the settlement of his estate that will keep this intact. I personally would like to live to see the day when a break-up activist does attempt something like that. That will be one hell of a proxy fight worth living to see!
« Last Edit: February 12, 2018, 09:38:23 AM by longinvestor »