Author Topic: Buffett/Berkshire - general news  (Read 494894 times)

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1786
  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #810 on: June 07, 2018, 10:10:45 AM »
End quarterly guidance! Indeed. Let’s see how this plays out.

On this note, is there a place, online  where one can go to see which companies are already doing this?


villainx

  • Full Member
  • ***
  • Posts: 214
Re: Buffett/Berkshire - general news
« Reply #811 on: June 07, 2018, 10:15:58 AM »
29-minute interview with Buffett and Jamie Dimon:

https://www.cnbc.com/video/2018/06/07/warren-buffett-jamie-dimon.html

Good interview!  No mentor fatigue yet.  =P

Charlie

  • Sr. Member
  • ****
  • Posts: 291
Re: Buffett/Berkshire - general news
« Reply #812 on: June 07, 2018, 11:05:51 AM »
Great interview, thanks for posting.  :)

Here is the transcript:

https://www.nbcumv.com/news/cnbc-transcript-berkshire-hathaway’s-warren-buffett-and-jpmorgan-chase’s-jamie-dimon-speak-cnbc?division=1&network=33135&show=151339
« Last Edit: June 07, 2018, 11:08:21 AM by Charlie »

OracleofCarolina

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 743
Re: Buffett/Berkshire - general news
« Reply #813 on: June 07, 2018, 11:09:25 AM »
looks like the link works if you cut and paste, but you can not click on it

Dynamic

  • Hero Member
  • *****
  • Posts: 540
Re: Buffett/Berkshire - general news
« Reply #814 on: June 11, 2018, 05:23:49 AM »
https://www.gurufocus.com/news/692562/bayer-closes-merger-with-buffetts-monsanto

A misleading headline - Buffett is the Chairman & CEO of Berkshire, a minority shareholder in Monsanto until the takeover by Bayer - but this apparent Merger Arbitrage appears to have been successful for Berkshire, the takeover closing at $128 per share of Monsanto stock.

Berkshire's holding as of 31st March had been 18,970,134 shares of MON (then trading at $116.69) and worth $2,213,624,936 at that date.
The number of shares had increased 62.0% over 31st December 2017 and I wouldn't be surprised if buying continued since the quarter ended until MON ceased trading on 7th June.

Assuming the same holdings at the close of the transaction, they'd have been worth $2,428,177,152, an increase of 9.7% since quarter end, which compares favourably with S&P500 and the Total Return Index since 31st March.
SP500   +7.6%
SP500TR   +8.1%

Weirdly all the Berkshire 13-F filings called it MOSANTO.

Of course, it will be missing from next quarter's 13-F but we might find some disclosure of it in the footnotes of the 10-Q, though there's no specific obligation to report the details.

I'll need to update my Look-Through spreadsheet to account for this (which I still haven't updated fully since the May 13-F). Perhaps I'll just enter something like $2.36bn of cash in its place (assuming about 21% tax on gains of very roughly $328mn). The effect of my assumption is fairly immaterial to the whole look-through portfolio.

Spekulatius

  • Hero Member
  • *****
  • Posts: 3272
Re: Buffett/Berkshire - general news
« Reply #815 on: June 11, 2018, 06:26:22 AM »
A billion here, a billion there, and soon we are talking about a serious amount of money.
To be a realist, one has to believe in miracles.

Dynamic

  • Hero Member
  • *****
  • Posts: 540
Re: Buffett/Berkshire - general news
« Reply #816 on: June 11, 2018, 09:56:49 AM »
I'll need to update my Look-Through spreadsheet to account for this (which I still haven't updated fully since the May 13-F). Perhaps I'll just enter something like $2.36bn of cash in its place (assuming about 21% tax on gains of very roughly $328mn). The effect of my assumption is fairly immaterial to the whole look-through portfolio.

I have now updated my Look Through Spreadsheets, taking account of perhaps $2.44 per share in tax on the gains (all estimated from unknown buy price) to include estimated net cash proceeds resulting from Monsanto of $125.56 per share. That would be about a 9% return after tax if my estimates are correct, which sounds about right for a 6-9 month merger arb.

Google now makes it very easy to copy my look-through spreadsheet into your own private Google Sheet. A single operation File/Make a copy...

I've also made the other updates for the quarter and the sheet now shows crude quarter-to-quarter changes on the Combined Holdings sheet. This is supposed to represent owner-shares and owner-earnings, and excludes pension holdings where I could find them.

In further news Knauf 's takeover of USG is now approved but hasn't closed yet:
Within 6 months, the USG deal for $44 per share acquisition by Knauf will close, too, but for now I'll leave it on the spreadsheet. That deal will be $0.50 per share as a special dividend plus $43.50 per share in cash. For now, I expect the stock price to track an estimated time-value discount to the takeover price plus dividend, remaining close to $43-44 per share.

The look through spreadsheet I'd advise you to Make a copy of for your own use is:
Berkshire Hathaway Look Through Earnings & Holdings

The spreadsheet that is publicly editable by anyone (but anyone can see any edits you make, the edit history, or corrupt the spreadsheet) is:
Berkshire Look through earnings - Public editing allowed

Dynamic

  • Hero Member
  • *****
  • Posts: 540
Re: Buffett/Berkshire - general news
« Reply #817 on: June 11, 2018, 10:25:36 PM »
Berkshire has filed a 13D/A regarding USG. Scrolling to the notes section: Same holdings as before but they have given their proxy to the acquirer, Knauf, to accept the acquisition offer and clarified that their previous offer of a $42-strike call option on all their stock to Knauf at $2 price did not proceed. The $43.50 + 50¢ special dividend offer provides the same $44 return to all shareholders.

Courtesy Rocketfinancial email alerts

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1816
Re: Buffett/Berkshire - general news
« Reply #818 on: June 12, 2018, 07:42:14 AM »
Just to clarify on this, Berkshire was not proposing to receive $2 more than other shareholders in their original option proposal.  Their proposal was always going to result in Berkshire receiving the same consideration as other shareholders if a deal was consummated.

Berkshire has filed a 13D/A regarding USG. Scrolling to the notes section: Same holdings as before but they have given their proxy to the acquirer, Knauf, to accept the acquisition offer and clarified that their previous offer of a $42-strike call option on all their stock to Knauf at $2 price did not proceed. The $43.50 + 50¢ special dividend offer provides the same $44 return to all shareholders.

Courtesy Rocketfinancial email alerts

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1816
Re: Buffett/Berkshire - general news
« Reply #819 on: June 12, 2018, 07:45:27 AM »
In thinking about Berkshire's continued buying of AAPL, it seems to me that Berkshire must have stopped buying.  Berkshire would be required to report to the SEC if it crossed above ~245.7 million shares, which represented 5% as of the last 10Q.  As Apple updates the share count to reflect repurchases, Berkshire will likely cross the 5% threshold and report an updated number for Berkshire ownership, but only following the publication of a new shares outstanding figure by Apple.

Or I could be wrong and a 13d could be filed any day showing Berkshire hitting 5%...