Author Topic: Buffett/Berkshire - general news  (Read 460567 times)

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #820 on: June 14, 2018, 05:41:24 AM »
Thanks, gfp, for clarifying the call option proposal re USG. I obviously had lodged that in my brain incorrectly.

On thinking about your suspicion that Berkshire has stopped buying Apple, I think you're right and that they may potentially have even decided to trim their position by a small amount to stay below the reporting threshold.

Regarding Apple and the 13D requirements, I wasn't aware that 13D reporting came at 5% as I'm fairly new to trawling through all the EDGAR filings, especially since I've started receiving them on email via rocketfinancial and since I start looking at historic 13D filings to calculate the holdings by pensions funds for various Berkshire subsidiary employees to account for these in the Look Through spreadsheet, but here's a decent summary I found in response to gfp's post:

Quote
Schedule 13D
From Wikipedia, the free encyclopedia

Schedule 13D is an SEC filing that must be submitted to the US Securities and Exchange Commission within 10 days by anyone who acquires beneficial ownership of more than 5% of any class of publicly traded securities in a public company. A filer must promptly update the Schedule 13D filing to reflect any material change in the facts disclosed, including, among other things, the acquisition or disposition of 1% or more of the class of securities that are the subject of the filing.

I have recently had suspicions that a few more AAPL may have been purchased by Berkshire in the $162-$165 range at the end of April, but the run-up to $183-$194 ballpark since then may have curtailed their buying. Roughly 200 milion shares of AAPL traded in that April low period, so I would not have been shocked to find they've added another 50-60 million shares.

On the latest Apple 10-Q we have the figure:
Quote
4,915,138,000 shares of common stock, par value $0.00001 per share, issued and outstanding as of April 20, 2018
, which remains the latest published figure for outstanding shares.

Now it appears that 5% reporting threshold would currently be 245,756,900 shares.

Berkshire's 13-F holdings (Berkshire and New England Asset Management combined) as of 31st March including pension fund holdings are:
245,278,633 (4.990% of last known shares outstanding).

This is remarkably close to a threshold that wouldn't have been precisely known to Berkshire prior to 20th April. Can that be coincidence?

We believe that 2,837,753 shares are owned by pension schemes within Berkshire (per 10-K annual report). (0.058% of AAPL)

From the financial-benefit definition of beneficially owned, Berkshire has 242,440,880 (4.933% of AAPL), excluding the pension scheme holdings that are not for the financial benefit of Berkshire's owners.
But from the voting power definition of beneficially owned, it's the 4.990% known directly from the two 13-F filings that counts.

I assume from the 4.990% being just below 5.000% that it may be the latter that would trigger the 13D and that this threshold is what curtailed Berkshire's buying in the first quarter to avoid reporting responsibilities.

It is even possible, perhaps likely, that Berkshire may engage in slight trimming this quarter at the $180+ range to avoid 13D filing responsibilities that might arise the moment that Apple next makes a filing that discloses a reduced number of shares outstanding.

In this way, Apple, like Wells Fargo, may well then remain at about this size, with Berkshire estimating the extent of Apple buybacks and trimming slightly from quarter to quarter, unless the SEC is willing to grant them an exemption from public filing within 10 days until they hit a higher limit such as 10%. I imagine such an exemption is possible, because I don't recall 13D filings about the 0.4% Wells Fargo position trimming appearing prior to the release of the 13-F this quarter, and this trimming ws to keep Berkshire just below the 10% level to avoid being considered a Bank Holding Company, which is, of course, well above the 5% 13D threshold. If they are allowed exemption from public filing of 13D while they build their position.


gfp

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Re: Buffett/Berkshire - general news
« Reply #821 on: June 14, 2018, 06:14:49 AM »
Good discussion there.  Berkshire did have to report the Wells share sales within 3 days.  Berkshire issued a press release and briefed Becky Quick on it just before the filings hit so people wouldn't freak out - "Berkshire selling Wells Fargo!" which would be seen as a big negative, especially given the headlines surrounding Wells recently..

https://www.sec.gov/Archives/edgar/data/72971/000120919117026722/xslF345X03/doc4.xml

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #822 on: June 14, 2018, 06:54:31 AM »
Aha, I see that to get Form 4 reports on EDGAR search you must select "• Include" next to the filter entitled "Ownership?". I was thus able to find the filing you linked to, gfp, both via Wells Fargo and via Berkshire Hathaway, Inc.

When accessing EDGAR via the SEC filings link at berkshirehathaway.com the 'Include' option does not appear to be selected, so Form 4 filings (e.g. Ajit Jain's disposals when gifting to charity) do not normally show up. I usually see these via my http://www.rocketfinancial.com/ portfolio email alerts, which are set to "All News and Filings".

If you search Berkshire Hathaway, Inc and •Include Ownership, and search prior to date 20170420 you will see the first 4 filing type is the Wells Fargo filing you linked to. The second was a charitable gift of BRK.B stock by Warren Buffett.

gfp

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Re: Buffett/Berkshire - general news
« Reply #823 on: June 14, 2018, 08:00:01 AM »
You can also look at just the insider transactions by clicking the red link "Get insider transactions" for this 'issuer' or for this 'reporting owner'

Under this reporting owner, for Berkshire, you get the recent PSX sale, the Liberty Sirius accumulation, PSX purchases, etc..

Under this issuer, you get the insider transactions for BRK stock, which are primarily charity related.  But sometimes there is an interesting one like Charlie transferring a huge block of his Berkshire stock near the exact bottom of the financial crisis to his children in exchange for a promissory note.  Charlie's no dummy
https://www.sec.gov/Archives/edgar/data/1067983/000118143108063602/xslF345X03/rrd224408.xml
« Last Edit: June 14, 2018, 08:03:17 AM by globalfinancepartners »

boilermaker75

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Re: Buffett/Berkshire - general news
« Reply #824 on: June 14, 2018, 12:03:22 PM »
You can also look at just the insider transactions by clicking the red link "Get insider transactions" for this 'issuer' or for this 'reporting owner'

Under this reporting owner, for Berkshire, you get the recent PSX sale, the Liberty Sirius accumulation, PSX purchases, etc..

Under this issuer, you get the insider transactions for BRK stock, which are primarily charity related.  But sometimes there is an interesting one like Charlie transferring a huge block of his Berkshire stock near the exact bottom of the financial crisis to his children in exchange for a promissory note.  Charlie's no dummy
https://www.sec.gov/Archives/edgar/data/1067983/000118143108063602/xslF345X03/rrd224408.xml

I'd much rather have Charlie for a father than Warren!

alpha

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John Hjorth

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« Last Edit: June 26, 2018, 10:09:22 AM by John Hjorth »
”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

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #827 on: June 30, 2018, 03:30:22 AM »
Repowering order from PacifiCorp to Vestas Wind Systems.

Quite amazing that it's optimal to scrap nacelles and blades after only approx. 11 years of operation, to get better performance. It says a lot about how the technology in this industry is advancing over time. [Mentioned by Uccmal before here on CoBF.]
”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

gfp

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Re: Buffett/Berkshire - general news
« Reply #828 on: June 30, 2018, 05:29:00 AM »
One of the key points is that all of these re-powering deals (NextEra is doing a lot of them as well) are gaining eligibility to re-start the production tax credits with today's date.  It's a substantial enough rebuild/replacement that it basically counts as a new wind farm after you're getting closer to the end of your original production tax credit period for the old equipment.  Also, of course, the new equipment is much larger and generates more power on land you already have control of, infrastructure already built, etc..

- and because of the phase down of tax credits, 2018 is the year you will see the equipment ordered for almost all of the next several years of projects

Repowering order from PacifiCorp to Vestas Wind Systems.

Quite amazing that it's optimal to scrap nacelles and blades after only approx. 11 years of operation, to get better performance. It says a lot about how the technology in this industry is advancing over time. [Mentioned by Uccmal before here on CoBF.]
« Last Edit: June 30, 2018, 05:30:42 AM by globalfinancepartners »

Cigarbutt

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Re: Buffett/Berkshire - general news
« Reply #829 on: June 30, 2018, 05:50:56 AM »
One of the key points is that all of these re-powering deals (NextEra is doing a lot of them as well) are gaining eligibility to re-start the production tax credits with today's date.  It's a substantial enough rebuild/replacement that it basically counts as a new wind farm after you're getting closer to the end of your original production tax credit period for the old equipment.  Also, of course, the new equipment is much larger and generates more power on land you already have control of, infrastructure already built, etc..

- and because of the phase down of tax credits, 2018 is the year you will see the equipment ordered for almost all of the next several years of projects

Repowering order from PacifiCorp to Vestas Wind Systems.

Quite amazing that it's optimal to scrap nacelles and blades after only approx. 11 years of operation, to get better performance. It says a lot about how the technology in this industry is advancing over time. [Mentioned by Uccmal before here on CoBF.]

Yes, technology is evolving (longer blades, more efficient turbines etc) and there is more to come but:

-this is a reminder of the intensity of capital involved
-the decision to repower, like globalfinancepartners explains, in influenced significantly by the tax implications

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/energy-resources/us-er-useful-lives-and-assets-to-qualify-for-tax-credits.pdf

Don't want to kill the enthusiasm but helpful to remember that the wind energy business, if you compare to learning how to ride a bike, is progressing but the safety wheels are still on.