Author Topic: Buffett/Berkshire - general news  (Read 466971 times)

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #790 on: May 22, 2018, 01:41:38 PM »
Are busses in LA running around the clock? - I'm just asking here. 385 miles/day reads like a lot.
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nickenumbers

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Re: Buffett/Berkshire - general news
« Reply #791 on: May 26, 2018, 06:22:36 AM »
Guys,

I hadn't heard the story that Charlie Munger told on the CNBC interview about Warren and Charlie having the opportunity to purchase the french portion/division/interest in Costco many years back.  Charlie said that he told Warren to "close his eyes and BUY IT."  And Warren DID NOT/WOULD NOT buy it....

Does anyone know how much they would have made/profited had they purchased it?  How large was the sin of omission?

Thanks.
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

gfp

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Re: Buffett/Berkshire - general news
« Reply #792 on: May 26, 2018, 10:24:52 AM »
This link is the registration statement for the block of Costco Stock in question (momentarily called "PriceCostco" for a year following the merger with Sol Price's Price Club):
https://www.sec.gov/Archives/edgar/data/909832/0000912057-96-010651.txt

The partner was a subsidiary of Carrefour, the French hypermarket company.  Carrefour owned 21.19 million shares, which was 9.7 - 10.8% of Costco around the mid nineties. 

The offering ended up being for 19.5 million shares in this registration statement, so you can assume the block that Warren had a chance at was probably the 19.5 million shares.

I'm sure you could find some online calculator to tell you the total return with dividends of 19.5 million costco shares from approximately May 23, 1996 to the present.  I assume there have been splits, but am not a Costco shareholder.


Guys,

I hadn't heard the story that Charlie Munger told on the CNBC interview about Warren and Charlie having the opportunity to purchase the french portion/division/interest in Costco many years back.  Charlie said that he told Warren to "close his eyes and BUY IT."  And Warren DID NOT/WOULD NOT buy it....

Does anyone know how much they would have made/profited had they purchased it?  How large was the sin of omission?

Thanks.


edit -- I think it's as simple as 19.5 million shares at a split adjusted 10 bucks per share in May 1996, say 195 million for Berkshire.  Without including dividends, the shares would be worth $3.9 Billion at 200/share today, 22 years later

second edit -- well I think the above is not exactly right.  The shares were 20.875 / share for the offering, which would have cost Berkshire $407 million bucks for 19.5 million shares.  They would now have 39 million shares at 200, so $7.8 Billion.  At least I think this is correct...

More or less this attached image ->
« Last Edit: May 26, 2018, 11:20:28 AM by globalfinancepartners »

nickenumbers

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Re: Buffett/Berkshire - general news
« Reply #793 on: May 26, 2018, 07:08:46 PM »
This link is the registration statement for the block of Costco Stock in question (momentarily called "PriceCostco" for a year following the merger with Sol Price's Price Club):
https://www.sec.gov/Archives/edgar/data/909832/0000912057-96-010651.txt

The partner was a subsidiary of Carrefour, the French hypermarket company.  Carrefour owned 21.19 million shares, which was 9.7 - 10.8% of Costco around the mid nineties. 

The offering ended up being for 19.5 million shares in this registration statement, so you can assume the block that Warren had a chance at was probably the 19.5 million shares.


edit -- I think it's as simple as 19.5 million shares at a split adjusted 10 bucks per share in May 1996, say 195 million for Berkshire.  Without including dividends, the shares would be worth $3.9 Billion at 200/share today, 22 years later

second edit -- well I think the above is not exactly right.  The shares were 20.875 / share for the offering, which would have cost Berkshire $407 million bucks for 19.5 million shares.  They would now have 39 million shares at 200, so $7.8 Billion.  At least I think this is correct...

More or less this attached image ->


Wow, that is excellent and exceeds my expectations.  Those 2 crack me up.  Whats another $7-8 Billion between a couple buds..

Thanks again GlobalFinancialPartners!
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

alpha

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Re: Buffett/Berkshire - general news
« Reply #794 on: May 30, 2018, 01:22:19 PM »

Jurgis

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Re: Buffett/Berkshire - general news
« Reply #795 on: May 30, 2018, 01:24:38 PM »
Seriously?  :o
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ScottHall

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Re: Buffett/Berkshire - general news
« Reply #796 on: May 30, 2018, 01:44:43 PM »
Maybe there's hope for the old GOAT after all.
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stahleyp

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Re: Buffett/Berkshire - general news
« Reply #797 on: May 30, 2018, 01:49:16 PM »
I call BS on that report. No freaking way that Buffett tried to invest in Uber.

On a different note, does anyone have the full opening message from this?

https://www.marketwatch.com/story/warren-buffett-is-bullish-on-growth-in-american-living-standards-2018-05-30
Paul

gfp

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Re: Buffett/Berkshire - general news
« Reply #798 on: May 30, 2018, 02:00:06 PM »
I believe it. It was convertible debt, expensive money for uber to gain buffett’s Halo effect. With optionality on the upside for brk. And warren wanted to do far more than 3 billion in size. Dara tried to talk him down to 2 billion. It sounds plausible.  I wonder what the interest rate was. 5-8%?  I didn’t see the rate on uber ‘s term loan

stahleyp

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Re: Buffett/Berkshire - general news
« Reply #799 on: May 30, 2018, 02:01:51 PM »
ugh...I shouldn't jump to conclusions so quickly. I was thinking it was just regular private market shares or whatever.

I think I'm a little too cynical since the news floated the rumor that Buffett was buying GE a few months ago.
Paul