Author Topic: Berkshire Annual meeting - 50% a year?  (Read 1437 times)

fishwithwings

  • Jr. Member
  • **
  • Posts: 97
Berkshire Annual meeting - 50% a year?
« on: May 09, 2019, 03:52:10 AM »
Does anyone know what he meant by arbitrage but not in the traditional sense. This is in response to the guy who asked him about 50% returns on 1mill. It was one of the last few questions
Some examples would be good.


CorpRaider

  • Hero Member
  • *****
  • Posts: 2095
    • The Corpraider
Re: Berkshire Annual meeting - 50% a year?
« Reply #1 on: May 10, 2019, 04:41:05 PM »
Could have meant like activism.  Like Sanborne maps or even the initial Berkshire; Sanborn: you have a bag o cash and securities of  $20 a share (for example) and stock is trading at $8.  How about you distribute some $$$ or I clean this place up.

If I spoke Japanese I would probably look there and talk to some japanese lawyers and politicians about cleaning up some of the corporate recidivism.  Maybe you get away with it if you were dealing with small fries.

Charlie told us, another example would be to do what Li Lu did.

fishwithwings

  • Jr. Member
  • **
  • Posts: 97
Re: Berkshire Annual meeting - 50% a year?
« Reply #2 on: May 11, 2019, 03:56:43 AM »
Thanks. Two follow up questions. Wouldn't he just have said activism instead of aribtrage in that case?  What did Liu lu do?

CorpRaider

  • Hero Member
  • *****
  • Posts: 2095
    • The Corpraider
Re: Berkshire Annual meeting - 50% a year?
« Reply #3 on: May 11, 2019, 10:00:28 AM »
Maybe, but I think he called them "work-outs" back in the p-ship days.  Could be talking about like the jay pritzker deal with CEFs or something.