Author Topic: Buffett/Berkshire - general news  (Read 467883 times)

dartmonkey

  • Jr. Member
  • **
  • Posts: 62
Re: Buffett/Berkshire - general news
« Reply #610 on: October 04, 2017, 08:52:31 AM »
maybe a 3% EBITDA margin business, tops? So possible value of company at 15x (just to throw a  very high number there) = 0.45x sales = $9B enterprise value as an upper limit.

 Maybe they make more money, but TravelCenters GAAP financials certainly don't indicate that (EBITDA margins are <3% in all years and <1% in many)It's possible (highly likely) Flying J is much better run, but how much better?

In the absence of other info, I think it's fair to say this may be a very small transaction relative to the headline of "one of the largest private co's in America", and doesn't really change the earnings power materially.

More of a varmint than an elephant.

Operating income was $1.4B in 2015, up from $1.1B the year before. So maybe your numbers are a bit low. Not as big as an elephant, but bigger than varmint - a deer, say, or maybe a moose.


John Hjorth

  • Hero Member
  • *****
  • Posts: 2713
Re: Buffett/Berkshire - general news
« Reply #611 on: October 04, 2017, 10:04:35 AM »
I'm curious about your data source about the operating income, dartmonkey, and I hope you will share it.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

rb

  • Hero Member
  • *****
  • Posts: 2922
Re: Buffett/Berkshire - general news
« Reply #612 on: October 04, 2017, 10:52:22 AM »
Yeah, I'd be interested in the source as well. Dartmonkey's numbers indicate an op margin somewhere in the 7% range when their competitors are in the 1%-1.5% range. This would make them insanely profitable. I just don't see the way you get those margins selling diesel.

DooDiligence

  • Hero Member
  • *****
  • Posts: 1887
  • ♪ 🎶 ♫ ♪ 🎶 ♫
Re: Buffett/Berkshire - general news
« Reply #613 on: October 04, 2017, 11:49:31 AM »
Yeah, I'd be interested in the source as well. Dartmonkey's numbers indicate an op margin somewhere in the 7% range when their competitors are in the 1%-1.5% range. This would make them insanely profitable. I just don't see the way you get those margins selling diesel.

Credit?
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish

rb

  • Hero Member
  • *****
  • Posts: 2922
Re: Buffett/Berkshire - general news
« Reply #614 on: October 04, 2017, 12:00:10 PM »
Debt doesn't figure into operating margins. If you were to go lower in the P&L debt would lower margins not raise them.

John Hjorth

  • Hero Member
  • *****
  • Posts: 2713
Re: Buffett/Berkshire - general news
« Reply #615 on: October 04, 2017, 12:11:31 PM »
I hereby suggest a topic split to to here for discussion of the Berkshire Pilot Flying J aquisition in detail.

It deserves its own topic, I think.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1779
  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #616 on: October 04, 2017, 12:16:39 PM »
https://finance.yahoo.com/video/automated-trains-speeding-past-self-171026128.html

Interesting, autonomous train test in western australia. Planes, trains.....yes; automobiles?..no.  Unsexy and it's not coming from Silicon Valley ;)
« Last Edit: October 04, 2017, 12:19:03 PM by longinvestor »

DooDiligence

  • Hero Member
  • *****
  • Posts: 1887
  • ♪ 🎶 ♫ ♪ 🎶 ♫
Re: Buffett/Berkshire - general news
« Reply #617 on: October 04, 2017, 05:05:37 PM »
Debt doesn't figure into operating margins. If you were to go lower in the P&L debt would lower margins not raise them.

I actually meant selling fuel on credit.

Sorry John, future posts will go to the right thread.
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish

John Hjorth

  • Hero Member
  • *****
  • Posts: 2713
Re: Buffett/Berkshire - general news
« Reply #618 on: October 04, 2017, 05:28:54 PM »
You are forgiven, DooDiligence, [ ; - ) ]

The board members interested in this transaction will get it right anyway, by reading the whole board.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

DooDiligence

  • Hero Member
  • *****
  • Posts: 1887
  • ♪ 🎶 ♫ ♪ 🎶 ♫
Re: Buffett/Berkshire - general news
« Reply #619 on: October 05, 2017, 10:28:52 AM »
You are forgiven, DooDiligence, [ ; - ) ]

The board members interested in this transaction will get it right anyway, by reading the whole board.

I deleted a few posts/clogs over on that other thread but had to leave 2 in order to keep myself honest (probably could move those - yea or nay?)
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish