Author Topic: Buffett/Berkshire - general news  (Read 488886 times)

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #940 on: November 02, 2018, 05:27:04 PM »
It could be one or several separate battery wagons electrical and pullingwise connected to the pulling [electrical] locomotive. Somewhat like in the first days of the NA railroad, where the first wagon after the steam driven locomotive was a wagon containing and carrying the "fuel" [coal]. Instead of doing a recharging stop somewhere, you "swap batteries" at a charging station, thereby time saved.

I remember somebody here on CoBF years ago called Berkshire "old economy", but innovation sure isen't dead at Berkshire.

I would say that innovation is very dead at BRK. WEB targets industries that don't change. GE makes locomotive engines ... not BNSF.

I would let GE do the innovating. At least itís just innovation thatís dead at Berkshire.


gfp

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Re: Buffett/Berkshire - general news
« Reply #941 on: November 03, 2018, 11:45:15 AM »
Is anyone else coming up with numbers that suggest Berkshire added 200 million BAC shares in the quarter?  As in, used to own 700 million, now owns 900 million?

That would account for over $6 billion of the $15 Billion increase to cost basis in the category "Banks, insurance and finance."  I have long speculated that he would add JPM, but with Todd on the board I would think he would have to file.  Still a lot of "Banks Insurance and finance" that he bought during the quarter beyond just the BAC stock I am thinking he added.

I guess the other likely suspects would be USB, BK, and GS.
« Last Edit: November 03, 2018, 11:49:28 AM by globalfinancepartners »

Munger_Disciple

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Re: Buffett/Berkshire - general news
« Reply #942 on: November 03, 2018, 12:02:11 PM »
Is anyone else coming up with numbers that suggest Berkshire added 200 million BAC shares in the quarter?  As in, used to own 700 million, now owns 900 million?

That would account for over $6 billion of the $15 Billion increase to cost basis in the category "Banks, insurance and finance."  I have long speculated that he would add JPM, but with Todd on the board I would think he would have to file.  Still a lot of "Banks Insurance and finance" that he bought during the quarter beyond just the BAC stock I am thinking he added.

I guess the other likely suspects would be USB, BK, and GS.


My math agrees with yours. I got slightly above 200M BAC shares purchased during Q3 for 6B. They seem to have added a net $15B to financials during Q3 (there were some minor sales of WFC to stay under 10% cap). Pretty big move I think.

Munger_Disciple

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Re: Buffett/Berkshire - general news
« Reply #943 on: November 03, 2018, 12:08:21 PM »
Actually there appears to be sales of approximately 2.85B worth of financials during Q3 and $17.85B of purchases for a net purchases of $15B in the "Banks, insurance and finance" category.
« Last Edit: November 03, 2018, 12:10:00 PM by Munger_Disciple »

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #944 on: November 03, 2018, 01:36:43 PM »
Great observations about BAC for Berkshire, gents,

The next questions are, as at least partly already mentioned by globalfinancepartners, because it's a lot capital allocated during 2018Q3 to financials etc.:
  • ~USD 15 B in financials etc., with ~USD 6 allocated to BAC, what's the rest allocated to? -Personally I speculate that it would at least include an allocation to JPM - alone because of the size of the rest - time will tell [mid this month].
  • If ~USD 6 B has been allocated to BAC during 2018Q3, why should continued buying not take place during "Red October", where BAC has tanked some, and daily volume has gone materially up?
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gfp

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Re: Buffett/Berkshire - general news
« Reply #945 on: November 03, 2018, 02:22:36 PM »
You would hope if he liked something in September he would still like it at much lower prices in October.  I have thought he would buy JPM for a long time, but I gave up on that hope when Todd joined the board of directors of JPM.  I am unclear if Todd being on the BoD at JPM would require Berkshire Hathaway to file with the SEC, but it might.  Which would rule out JPM.

Too bad, because he's going to want a certain allocation to the banking business and its going to get harder for $1 trillion, 2 trillion, etc,  Berkshire to do that if they are forced to keep selling most of them above 10%.  9% of JPM would have been a pretty good solution and you know he loves the management, loves the business, etc...  Plus JPM was available at great prices for a really long time. 

Since he was buying USB, BK and GS before the quarter, it seems logical he continued.  But there could be new positions as well.

Munger_Disciple

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Re: Buffett/Berkshire - general news
« Reply #946 on: November 03, 2018, 02:29:41 PM »
Great observations about BAC for Berkshire, gents,

The next questions are, as at least partly already mentioned by globalfinancepartners, because it's a lot capital allocated during 2018Q3 to financials etc.:
  • ~USD 15 B in financials etc., with ~USD 6 allocated to BAC, what's the rest allocated to? -Personally I speculate that it would at least include an allocation to JPM - alone because of the size of the rest - time will tell [mid this month].
  • If ~USD 6 B has been allocated to BAC during 2018Q3, why should continued buying not take place during "Red October", where BAC has tanked some, and daily volume has gone materially up?

I agree with GFP that it is unlikely that Berkshire bought JPM, given Todd's board position.

With respect to BAC, Berkshire will not go above 10% of BAC's total shares. That means that Berkshire might possibly add almost another 80M shares after Sept 30th, which would bring the total to 980M, about 10% of BAC.

gfp

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Re: Buffett/Berkshire - general news
« Reply #947 on: November 03, 2018, 02:32:50 PM »
Bloomberg finally picked up on the BAC purchase.  I was surprised that nobody reported it.  CNBC would rather tweet about Mark Cuban recommending that you should buy a years' worth of toothpaste at a time..

https://www.bloomberg.com/news/articles/2018-11-03/buffett-s-buying-shows-appetite-for-stocks-including-his-own?srnd=premium

DooDiligence

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Re: Buffett/Berkshire - general news
« Reply #948 on: November 03, 2018, 02:57:17 PM »
Bloomberg finally picked up on the BAC purchase.  I was surprised that nobody reported it.  CNBC would rather tweet about Mark Cuban recommending that you should buy a years' worth of toothpaste at a time..

https://www.bloomberg.com/news/articles/2018-11-03/buffett-s-buying-shows-appetite-for-stocks-including-his-own?srnd=premium

Short squeeze on toothpaste next week  ;D
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sleepydragon

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Re: Buffett/Berkshire - general news
« Reply #949 on: November 03, 2018, 03:30:08 PM »
Great observations about BAC for Berkshire, gents,

The next questions are, as at least partly already mentioned by globalfinancepartners, because it's a lot capital allocated during 2018Q3 to financials etc.:
  • ~USD 15 B in financials etc., with ~USD 6 allocated to BAC, what's the rest allocated to? -Personally I speculate that it would at least include an allocation to JPM - alone because of the size of the rest - time will tell [mid this month].
  • If ~USD 6 B has been allocated to BAC during 2018Q3, why should continued buying not take place during "Red October", where BAC has tanked some, and daily volume has gone materially up?

I bet itís BK. He has been buying in previous 13fs
(I am biased because I have some BK)