Author Topic: Buffett letter?  (Read 27302 times)

Liberty

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Re: Buffett letter?
« Reply #60 on: March 07, 2013, 11:20:31 AM »
Trying to find the link, actually I remember it was Munger who said they like renewable energy a lot. He said the costs are high now but certain to keep going down over time, so it will be a good investment. He compared renewables to Ethanol which he called "dumb" because it takes more energy to get less out.

I distinctly remember the 10x quote but cannot put my hands on it. I will keep looking.

MidAmerican has made huge investments in solar and wind power.
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longinvestor

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Re: Buffett letter?
« Reply #61 on: March 07, 2013, 12:26:09 PM »
Trying to find the link, actually I remember it was Munger who said they like renewable energy a lot. He said the costs are high now but certain to keep going down over time, so it will be a good investment. He compared renewables to Ethanol which he called "dumb" because it takes more energy to get less out.

I distinctly remember the 10x quote but cannot put my hands on it. I will keep looking.

MidAmerican has made huge investments in solar and wind power.
Yes, about $8B thus far. The discussion is over the related statement of them investing 10x that amount over the next decade.

longinvestor

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Re: Buffett letter?
« Reply #62 on: March 10, 2013, 08:09:42 AM »
Reading the letter again, something else that stands out is how quickly Combs/Weschler's kitty is growing. In the letter, Warren talks about increasing their money to $5B each and since the letter was published, that number now stands at $6B each (announced in the CNBC interview). At this rate they will have all of it pretty soon! It must be quite an experience for these two coming from their prior careers!
It must be amusing for Todd/Ted to hear their boss come up to them saying "Good job, and oh, here is another Billion" ;D. Berkshire is the only place in the world where this can possibly happen! Warren seems to have settled with these two (no more 3rd and 4th investment lead). Wonder who else was considered for this job?

One thing I rather like is that Ted/Todd have not appeared in the press at all. I hope this is no accident and they never talk publicly. The CEO can do the talking. Surely there are lots of people who would like to get into their heads right now. That will be a huge distraction.
« Last Edit: March 10, 2013, 08:16:23 AM by longinvestor »

LC

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Re: Buffett letter?
« Reply #63 on: March 10, 2013, 09:12:12 AM »
One thing I rather like is that Ted/Todd have not appeared in the press at all. I hope this is no accident and they never talk publicly. The CEO can do the talking. Surely there are lots of people who would like to get into their heads right now. That will be a huge distraction.
All the while, of course, Mr. Buffett has been ALL OVER the press!

It reminds me of what White Sox coach Ozzie Guillen would do for his team. Ozzie was such a controversial public figure that all the attention was on his antics and outbusts rather than scrutinizing the performance of his team!
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ericd1

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Re: Buffett letter?
« Reply #64 on: March 13, 2013, 07:13:34 PM »
Is there a way to determine what Ted/Todd picks are? 

Compare previous 13-Fs?


ragu

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Re: Buffett letter?
« Reply #65 on: March 18, 2013, 12:23:17 AM »
Wonder who else was considered for this job?

My understanding is that none of the 4 mentioned in the 2007 letter is currently in the running.

As for who it was, there is plenty of evidence to suggest that Li Lu of Himalaya Capital was one of the 4. Don't know who the other candidates might have been.

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Ragu

ragu

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Re: Buffett letter?
« Reply #66 on: March 18, 2013, 01:22:27 AM »
Good points.  And, the funny part is that, for example, he tells you to subtract the goodwill for the insurance business -- as you have. 

But then, you can find something -- like the 2010 report -- where he says that GEICO is on the books for only $1.4 billion of "goodwill" but really you could easily say that it should be on the books for more than $14 billion over carrying value...if you marked it up to what he thinks it's worth. (And, that was two years ago.)

Kiltacular,

The subtraction of goodwill is not inconsistent with Buffett's idea that the insurance businesses are worth more than they are carried for on Berkshire's books.

Goodwill (for the insurance businesses) = Price Berkshire was willing to pay for those businesses' float-generation capabilities

If you adjust book to reflect the economic value of float, then you must necessarily subtract goodwill so that you don't end up double-counting the value of the float.

Best,
Ragu
« Last Edit: March 18, 2013, 01:49:25 AM by ragu »

Palantir

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Re: Buffett letter?
« Reply #67 on: March 18, 2013, 01:55:56 PM »
Is there a way to determine what Ted/Todd picks are? 

Compare previous 13-Fs?

It seems the smaller buys tend to be Ted or Todd's. I believe Todd tends to flip positions more quickly than Ted.
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Re: Buffett letter?
« Reply #68 on: March 18, 2013, 02:35:29 PM »
Is there a way to determine what Ted/Todd picks are? 

Compare previous 13-Fs?

It seems the smaller buys tend to be Ted or Todd's. I believe Todd tends to flip positions more quickly than Ted.

Ted takes concentrated positions (DVA, DTV, LMCA)... and I believe Todd specializes moreso on financial companies

compoundinglife

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Re: Buffett letter?
« Reply #69 on: March 18, 2013, 03:29:37 PM »
Is there a way to determine what Ted/Todd picks are? 

Compare previous 13-Fs?

The easiest way (for me at least) is to watch/read the WEB interviews. People ask him why he bought Intel or GM and he will mention that they were not his purchases. This used to happen all the time with Lou's portfolio, BAC was a Lou position that people always asked Buffett about.

AFAIK these are the current holdings that WEB's picks. Anyone see any errors:

WFC
KO
IBM
PG
WMT
PSX
MCO
WPO
COST
MDLZ(kraft spin off)
KRFT
GCI
GE
USB
PSX(cop spin off)
COP
JNJ