Author Topic: Buffett/Berkshire - general news  (Read 316792 times)

AzCactus

  • Hero Member
  • *****
  • Posts: 568
Re: Buffett/Berkshire - general news
« Reply #670 on: February 03, 2018, 07:23:46 AM »
Market was down in general and the wells fargo scandal didn't help


rb

  • Hero Member
  • *****
  • Posts: 2694
Re: Buffett/Berkshire - general news
« Reply #671 on: February 03, 2018, 09:23:30 AM »
Market was down in general and the wells fargo scandal didn't help
The wells stuff came out after close.

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1629
  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #672 on: February 04, 2018, 05:50:21 PM »
Isn't it time when Buffett sends the letter to Loomis for final edit?

fareastwarriors

  • Hero Member
  • *****
  • Posts: 3467
Re: Buffett/Berkshire - general news
« Reply #673 on: February 11, 2018, 10:48:24 PM »

alpha

  • Full Member
  • ***
  • Posts: 102
Re: Buffett/Berkshire - general news
« Reply #674 on: February 13, 2018, 06:10:31 PM »

Phillips 66 is going to buy back 3.28 billion worth of shares from BRK for $93.72 per share to keep BRK's holdings under 10%


https://www.reuters.com/article/us-phillips-66-buyback-berkshire/phillips-66-to-buy-back-35-mln-shares-from-berkshire-hathaway-idUSKCN1FX33G

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1544
    • scorpion capital
Re: Buffett/Berkshire - general news
« Reply #675 on: February 14, 2018, 01:52:04 AM »
"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10 percent, Buffett said in a statement."

I'm not too clear - this is not a bank stock, does Berkshire have a sub-10% requirement for refinery/oil stocks too? It sounds like in this case regulatory requirements were too onerous - but what would they be?  Also, is it correct to understand that *either* Berkshire desires to own <= 10% of this OR it can own 100% (a full buyout) but not anything in-between?

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1629
  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #676 on: February 14, 2018, 03:46:06 AM »
"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10 percent, Buffett said in a statement."

I'm not too clear - this is not a bank stock, does Berkshire have a sub-10% requirement for refinery/oil stocks too? It sounds like in this case regulatory requirements were too onerous - but what would they be?  Also, is it correct to understand that *either* Berkshire desires to own <= 10% of this OR it can own 100% (a full buyout) but not anything in-between?

Believe it is the SEC reporting requirement of 3 days versus 3 months.

globalfinancepartners

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1463
Re: Buffett/Berkshire - general news
« Reply #677 on: February 14, 2018, 05:50:43 AM »
If I had to guess it was probably more about FERC and/or DOT regulators that Berkshire Hathaway Energy deals with.  It is possible that over 10% they start to consider PSX assets when Berkshire seeks certain approvals.

Another possibility is that it was PSX's idea to buy the block, Warren was OK with it, and they used it as an excuse.

"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10 percent, Buffett said in a statement."

I'm not too clear - this is not a bank stock, does Berkshire have a sub-10% requirement for refinery/oil stocks too? It sounds like in this case regulatory requirements were too onerous - but what would they be?  Also, is it correct to understand that *either* Berkshire desires to own <= 10% of this OR it can own 100% (a full buyout) but not anything in-between?

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1544
    • scorpion capital
Re: Buffett/Berkshire - general news
« Reply #678 on: February 14, 2018, 02:08:31 PM »
Seems Buffett has sold out almost the entire IBM position. Did he find something better than 11x earnings or better prospects and is loading his cash reserves?


globalfinancepartners

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1463
Re: Buffett/Berkshire - general news
« Reply #679 on: February 14, 2018, 02:16:11 PM »
He's been liquidating it for a while now, and mentioned he was still selling in a fairly recent CNBC interview.  I'm surprised he sold almost all of it before December 31st, since he had mentioned having high basis and low basis shares and choosing the shares he was selling before and after the new year.  I guess he didn't really have many low-basis shares left.  I don't think it is about finding something "better" - but rather moving on from a position that did not work out as he originally saw it going.  I do like to see the mental flexibility to change his mind, even with the cover of his whole "ideal holding period is forever" and a 4% dividend yield to justify holding.  It's amazing how much confidence he has in Apple - that position is getting really big.  Far bigger, at cost, than any other stock purchases in his life.

Seems Buffett has sold out almost the entire IBM position. Did he find something better than 11x earnings or better prospects and is loading his cash reserves?