Author Topic: Buffett/Berkshire - general news  (Read 493994 times)

scorpioncapital

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Re: Buffett/Berkshire - general news
« Reply #170 on: August 29, 2015, 12:31:18 PM »
Perhaps he sees refining as a good business in a sustained low oil price environment. For example, what I heard from the business in Canada, oil prices are 1/2 but gas prices at the pump not that much because the refineries can keep their profit margins - also it's a more value added product than just oil. Seems Berkshire's philosophy with lots of industrial acquisitions is the thought that value-added products/services in the supply chain can command better margins and are overall a superior business than pure commodity plays.



Jurgis

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Re: Buffett/Berkshire - general news
« Reply #171 on: August 29, 2015, 01:38:57 PM »
OK, but refining is periodically very crappy business. And I don't believe even Buffett can know that we are in sustained low oil price environment.

I'd not be surprised if T&T bought this for a short term play.
I'd be surprised if Buffett bought it without some kind of an angle, and I mean more than "refining is gonna be great business now for ... forever".
I'm not completely joking that he might be looking for another stock swap for some part of the business. But this is of course just pure guess.
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valueinvesting101

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Re: Buffett/Berkshire - general news
« Reply #172 on: August 29, 2015, 02:01:20 PM »
Refining business is 53% of Phillips 66 refining earning. They also have chemical and mid-stream operations.

Chemical, marketing and specialities are large part remaining earning sources. Midstreams assets are being moved to MLP. They own 50% interest in DCP midstream LLC and 66% ownership in Phillip 66 partners.

Refining business is usually commoditized play but given spread between Brent-WTI seems to be driving high margins at US refiners. This advantage can be best exploited by refiner with large sweet crude processing capacity located strategically close to oil production states and consuming markets. I believe this is biggest source of competitive advantage for PSX.

Export ban on US crude is driving Brent-WTI spread. If this ban is lifted margins of US refiners are likely to come down but I doubt this would lifted soon. If this is indeed lifted, then midstream assets should include in value which can essentially transform low price oil/gas at well to high value export items.

Company seems to be increasing its dividend and buyback for last few years as well as focusing on building new mid stream operations and moving them to MLP.

Most of the refiners are following above described strategies with varying degree. PSX must be good at executing them or BRK prefers them due to their size advantage.

I need to explore their differentiating factor vs. other refiner. Any thoughts on PSX advantages over other refiners?

jay21

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Re: Buffett/Berkshire - general news
« Reply #173 on: August 29, 2015, 03:06:34 PM »
Cant think of anyone with more insight into PSX then someone just doing due diligence on a potential asset swap with them. WEB must have liked what he saw.

Jurgis - very low chance T&T bought it due to the size of the position.

@jay_21_

Jurgis

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Re: Buffett/Berkshire - general news
« Reply #174 on: August 29, 2015, 03:14:53 PM »
Jurgis - very low chance T&T bought it due to the size of the position.

Right, what I was trying to say is that T&T could have bought it for short term gains, but since Buffett did it (apparently), we can exclude short term gains as a reason.
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longinvestor

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Re: Buffett/Berkshire - general news
« Reply #175 on: September 10, 2015, 06:46:19 AM »
http://finance.yahoo.com/video/warren-buffet-never-below-20b-153900364.html

Is $500 million a typical week (of buying) at Berkshire?

It could be $200M ...or $500M, depends on if we are buying 15-20% or 10% of volume.

We have laid out $32B over the next 6 weeks or so.


$200M a day is a mighty pen.

longinvestor

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Charlie

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Re: Buffett/Berkshire - general news
« Reply #177 on: September 22, 2015, 05:50:55 AM »
I hope Buffett is doing some equity purchases in Germany. The DAX is a volatile beast  :D:

https://www.comdirect.de/inf/indizes/detail/chart.html?TIME_SPAN=1D&ID_NOTATION=20735#timeSpan=SE&e&

Lately I thought real estate agency Engel & Völkers could be a good purchase for Berkshire.
It´s a good and popular brand name in the real estate agency businesses.

menlo

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Re: Buffett/Berkshire - general news
« Reply #178 on: September 24, 2015, 08:47:45 AM »
Morningstar updates their value of Berkshire:

http://news.morningstar.com/articlenet/article.aspx?id=715603&SR=Yahoo%E2%88%82=1

(Apologies if this was linked in another thread)

DCG

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Re: Buffett/Berkshire - general news
« Reply #179 on: September 28, 2015, 05:27:28 AM »



Not sure why Buffett is apparently friends with Ndamukong Suh, who is one of the biggest assholes in professional sports.
« Last Edit: September 28, 2015, 09:14:47 AM by DCG »