Author Topic: Buffett/Berkshire - general news  (Read 389988 times)

Gregmal

  • Hero Member
  • *****
  • Posts: 1578
Re: Buffett/Berkshire - general news
« Reply #1080 on: March 01, 2019, 07:22:51 AM »
Yea I definitely wouldn't be thrilled if he blew half the cash hoard on an airline. A business he once deemed uninvestable he is now going to foray into, making one of BRK's largest investments ever? Sounds like an unnecessary risk. I mean as it stands, airlines are currently so cheap that I dont see how buying one outright is a better choice than simply investing across the board in a few different ones. If his new found bullishness is correct, there will be tons of money to be made going forward given the single digit pe multiples these trade at. And if not, being in the public markets gives you the liquidity to get out if things go sour. Not the case with owning an entire company...


michaelj

  • Newbie
  • *
  • Posts: 21
Re: Buffett/Berkshire - general news
« Reply #1081 on: March 01, 2019, 08:00:58 AM »
Yea I definitely wouldn't be thrilled if he blew half the cash hoard on an airline. A business he once deemed uninvestable he is now going to foray into, making one of BRK's largest investments ever? Sounds like an unnecessary risk. I mean as it stands, airlines are currently so cheap that I dont see how buying one outright is a better choice than simply investing across the board in a few different ones. If his new found bullishness is correct, there will be tons of money to be made going forward given the single digit pe multiples these trade at. And if not, being in the public markets gives you the liquidity to get out if things go sour. Not the case with owning an entire company...

He owns just under 10% of DAL, AAL, LUV.  If I recall during the CNBC interview this week, part of his answer to why he wasn't buying in Q4 was that in the (unnamed) stocks he was interested in adding, he didn't want to trigger 10%

Gregmal

  • Hero Member
  • *****
  • Posts: 1578
Re: Buffett/Berkshire - general news
« Reply #1082 on: March 01, 2019, 08:15:15 AM »
Yea I definitely wouldn't be thrilled if he blew half the cash hoard on an airline. A business he once deemed uninvestable he is now going to foray into, making one of BRK's largest investments ever? Sounds like an unnecessary risk. I mean as it stands, airlines are currently so cheap that I dont see how buying one outright is a better choice than simply investing across the board in a few different ones. If his new found bullishness is correct, there will be tons of money to be made going forward given the single digit pe multiples these trade at. And if not, being in the public markets gives you the liquidity to get out if things go sour. Not the case with owning an entire company...

He owns just under 10% of DAL, AAL, LUV.  If I recall during the CNBC interview this week, part of his answer to why he wasn't buying in Q4 was that in the (unnamed) stocks he was interested in adding, he didn't want to trigger 10%

I dont think I believe the rumor on LUV, but yes, I'd prefer he just stick with owning those than do something drastic.

sleepydragon

  • Hero Member
  • *****
  • Posts: 631
Re: Buffett/Berkshire - general news
« Reply #1083 on: March 01, 2019, 09:56:56 AM »
It will be cool if he can buy 2-4 airlines in one bid. The consolidation will be instantly value add. And only Berkshire has the money to do that.

DooDiligence

  • Hero Member
  • *****
  • Posts: 1712
  • ♪ 🎶 ♫ ♪ 🎶 ♫
Re: Buffett/Berkshire - general news
« Reply #1084 on: March 01, 2019, 10:38:12 AM »
Yea I definitely wouldn't be thrilled if he blew half the cash hoard on an airline. A business he once deemed uninvestable he is now going to foray into, making one of BRK's largest investments ever? Sounds like an unnecessary risk. I mean as it stands, airlines are currently so cheap that I dont see how buying one outright is a better choice than simply investing across the board in a few different ones. If his new found bullishness is correct, there will be tons of money to be made going forward given the single digit pe multiples these trade at. And if not, being in the public markets gives you the liquidity to get out if things go sour. Not the case with owning an entire company...

It's almost as if he's switched to my investment process  :o
Healthcare 37.4% - CVS DVA EW NVO // BRK.B - 20.4% // Media & Communication 12.4% - CHTR DIS

Drinkers & Smokers 13.1% - ABEV MO // Auto's & Oil 14.5% - CLB GPC VDE // Tech 2.1% - AAPL

%'s held @ MV 04/5/2019 minus $$$

i trumpet my ignorance

https://twitter.com/tunawish

alwaysinvert

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 849
    • värdeinvesteraren
Re: Buffett/Berkshire - general news
« Reply #1085 on: March 01, 2019, 12:21:40 PM »
I'm so old that I remember all the gut reactions to BNSF too

StubbleJumper

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1072
Re: Buffett/Berkshire - general news
« Reply #1086 on: March 01, 2019, 12:26:13 PM »
It will be cool if he can buy 2-4 airlines in one bid. The consolidation will be instantly value add. And only Berkshire has the money to do that.


Could be a few regulatory hurdles to that.  At a certain point, anti-combines becomes an issue.

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1703
Re: Buffett/Berkshire - general news
« Reply #1087 on: March 01, 2019, 12:39:06 PM »
Yes there may be little truth to the rumor, being rehashed right at the end of the month and all. But if he were going to buy one of the airlines, it would probably be the one that has been profitable for 46 consecutive years.  I do not think LUV was the elephant he was working on in Q4, and since he would sell the equity positions in the other 3, it wouldn’t require a ton of cash from the parent. Not like a GE, UPS, BUD or KO would.  I guess we’ll just have to be patient

Gregmal

  • Hero Member
  • *****
  • Posts: 1578
Re: Buffett/Berkshire - general news
« Reply #1088 on: March 01, 2019, 12:39:59 PM »
It will be cool if he can buy 2-4 airlines in one bid. The consolidation will be instantly value add. And only Berkshire has the money to do that.


Could be a few regulatory hurdles to that.  At a certain point, anti-combines becomes an issue.

I would think the better way to do that would be to get in the ear of a portfolio company and play activist. Get them to make a bid or try to acquire another airline you like. Then give it a little and see how they integrate. Then make a bid for the combined entity.

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1703