Author Topic: Buffett/Berkshire - general news  (Read 466940 times)

gfp

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Re: Buffett/Berkshire - general news
« Reply #470 on: May 22, 2017, 06:13:23 AM »
It's funny - Berkshire was required to run a tiny ad in a newspaper in NYC to publicly announce this -
https://www.bloombergquint.com/markets/2017/05/22/buffett-plan-revealed-amid-ads-for-co-op-strippers-old-honda


gfp

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Re: Buffett/Berkshire - general news
« Reply #471 on: May 23, 2017, 03:17:35 PM »
I noticed something today for the first time while re-reading Berkshire's most recent 10Q (while stuck at the Social Security office waiting room for 2 hours..)

On page 39 of the PDF 10-Q from Berkshire's own website, the company notes that starting in 2018 they will adopt a new accounting standard that will reclassify the net unrealized gains for investments (presently reflected in accumulated other comprehensive income) to retained earnings instead.

The important part of this, as I understand it, is that going forward the changes in both realized AND unrealized gains in equity securities and certain other investments will be included in the periodic Consolidated Statements of Earnings.

Berkshire notes, "We do not expect the adoption of this standard will affect our total consolidated shareholders' equity.  However, it will likely produce a very significant increase in the volatility our periodic net earnings given the magnitude of our existing equity securities portfolio and the inherent volatility of equity securities prices."

So - economically, zero change.  But the headline earnings reporting is going to be a mess some quarters.  Too bad.

rb

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Re: Buffett/Berkshire - general news
« Reply #472 on: May 23, 2017, 03:29:57 PM »
There will probably be a line on the P&L for gains/losses in securities. So you should be able to easily back those out to get to "normalized earnings".

Aside note: Why do you guys have social security offices?

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #473 on: May 23, 2017, 03:30:32 PM »
I noticed something today for the first time while re-reading Berkshire's most recent 10Q (while stuck at the Social Security office waiting room for 2 hours..)

On page 39 of the PDF 10-Q from Berkshire's own website, the company notes that starting in 2018 they will adopt a new accounting standard that will reclassify the net unrealized gains for investments (presently reflected in accumulated other comprehensive income) to retained earnings instead.

The important part of this, as I understand it, is that going forward the changes in both realized AND unrealized gains in equity securities and certain other investments will be included in the periodic Consolidated Statements of Earnings.

Berkshire notes, "We do not expect the adoption of this standard will affect our total consolidated shareholders' equity.  However, it will likely produce a very significant increase in the volatility our periodic net earnings given the magnitude of our existing equity securities portfolio and the inherent volatility of equity securities prices."

So - economically, zero change.  But the headline earnings reporting is going to be a mess some quarters.  Too bad.
A question regarding this was batted away by Buffett and Munger as not material.

But who knows, some robo-ai algorithm could drive stock down to1.3x for me and 1.2x for the buyback.Make that happen, ha.

Jurgis

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Re: Buffett/Berkshire - general news
« Reply #474 on: May 23, 2017, 04:07:21 PM »
Aside note: Why do you guys have social security offices?

OT.

Why not?
My relative needs to do file a form because their spouse died. They'll probably go to the SS office. It's possible to do via phone, but likely then they would need to send in docs anyway. Which is a hassle and will take ages. Not sure if it can be done over Internetz. I think not especially since spouse died abroad, so good luck getting foreign death cert into Internetz.

Closer to topic: they went through this issue with BAC. It took almost a year of sending paper forms through letters. The positive side is that BAC seems to finally done everything right. I have a friend whose parent died and BAC screwed up the whole thing royally. Not that this would affect investment into BAC... other banks have similar issues regardless of size. Actually sometimes smaller banks screw up even more.

Anyway, we shouldn't hog the thread. Move to general for more discussion if you want.  8)
"Before you can be rich, you must be poor." - Nef Anyo
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gfp

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Re: Buffett/Berkshire - general news
« Reply #475 on: May 23, 2017, 04:13:16 PM »
"Aside note: Why do you guys have social security offices?"

Most people are applying to receive benefits, either retirement or disability benefits.  It is a mix of homeless people, disabled people and the elderly.  I was there with an adopted child who obtained U.S. citizenship last week and is required to appear in person to receive a social security number/card for the first time.  Two days in a row, the answer was "no".  Today's gem from the supervisor was, "a US passport is not proof of US citizenship."  Oy.

alpha

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KinAlberta

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Re: Buffett/Berkshire - general news
« Reply #477 on: May 29, 2017, 12:22:13 PM »
I noticed something today for the first time while re-reading Berkshire's most recent 10Q (while stuck at the Social Security office waiting room for 2 hours..)

On page 39 of the PDF 10-Q from Berkshire's own website, the company notes that starting in 2018 they will adopt a new accounting standard that will reclassify the net unrealized gains for investments (presently reflected in accumulated other comprehensive income) to retained earnings instead.

The important part of this, as I understand it, is that going forward the changes in both realized AND unrealized gains in equity securities and certain other investments will be included in the periodic Consolidated Statements of Earnings.

Berkshire notes, "We do not expect the adoption of this standard will affect our total consolidated shareholders' equity.  However, it will likely produce a very significant increase in the volatility our periodic net earnings given the magnitude of our existing equity securities portfolio and the inherent volatility of equity securities prices."

So - economically, zero change.  But the headline earnings reporting is going to be a mess some quarters.  Too bad.


Smells like an opportunity generator.  :-)


dcollon

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Re: Buffett/Berkshire - general news
« Reply #479 on: June 08, 2017, 05:45:10 AM »
Testing Mattresses with Warren Buffett

https://www.youtube.com/watch?v=6XFwlNVRD5M&sns=em