Author Topic: Buffett/Berkshire - general news  (Read 316657 times)

globalfinancepartners

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Re: Buffett/Berkshire - general news
« Reply #950 on: November 04, 2018, 04:21:10 AM »
BK, USB and GS were all being accumulated the previous quarter and are logiical bets. Maybe something new. It’s funny the headlines saying stuff like this Rolfe quote from the WSJ:

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What the buybacks signal, in a very big way, is that [Mr. Buffett’s] short list of putting prospective billions to work, either in private businesses or equities, outside of Apple, are nil,” said David Rolfe, chief investment officer of Wedgewood Partners Inc. in St. Louis, which owns Berkshire shares.

No mention of the huge purchases of equities in the quarter or explanation of why the cash balance is declining and didn’t print $120 billion this quarter like it would have, absent massive buying of investments...

Just look at the equity portfolio’s growth in the past 12 months. They have been buying a lot to keep cash at $100 Billion
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in other news, BNSF continues to roll over debt at extremely attractive rates.  Look at this 30 year issuance from Q3 -
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BNSF’s borrowings are primarily senior unsecured debentures. In the first nine months of 2018, BNSF issued $1.5 billion of senior unsecured debentures due in 2048, including $750 million in the third quarter. These debentures have a weighted average interest rate of 4.1%.

Seems like all the borrowing lately is 2048-49 stuff -
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In August 2018, BHFC issued $2.35 million of 4.2% senior notes due in 2048. Such borrowings are fully and unconditionally guaranteed by Berkshire

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In July 2018, BHE issued $1.0 billion of 4.45% senior unsecured debt that matures in 2049.  BHE subsidiaries also issued debt in July 2018, aggregating $1.05 billion and due in 2049.

And the entire bond portfolio for a company with $736 Billion in invested assets is $17.8 billion at cost ($18.3 at market).  An insurance company with a 2.5% allocation to fixed income.
« Last Edit: November 04, 2018, 10:20:48 AM by globalfinancepartners »


Cigarbutt

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Re: Buffett/Berkshire - general news
« Reply #951 on: November 04, 2018, 05:42:01 AM »
^"And the entire bond portfolio for a company with $736 Billion in invested assets is $17.8 billion at cost ($18.3 at market).  An insurance company with a 2.5% allocation to fixed income."

And within that fixed income category, 40% is due in less than 1 year and 50% in 1-5 years.

Value^2

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Re: Buffett/Berkshire - general news
« Reply #952 on: November 04, 2018, 07:05:56 AM »
Any idea does he see crApple as one of the Berkshires permanent  investment like Amex/KO/WFC?
« Last Edit: November 04, 2018, 07:24:58 AM by Value^2 »

globalfinancepartners

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Re: Buffett/Berkshire - general news
« Reply #953 on: November 04, 2018, 07:41:27 AM »
Who knows.  I doubt any of the equities are actually thought of as permanent holdings.  He's tried to clarify that through updates to the 'owners manual' over the years.  It's all available for sale if the business changes or the opportunity outweighs the benefit of the interest free loan from the government on the unrealized gains.  The bar would be even lower now under current tax rates

Any idea does he see crApple as one of the Berkshires permanent  investment like Amex/KO/WFC?

globalfinancepartners

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Re: Buffett/Berkshire - general news
« Reply #954 on: November 04, 2018, 09:11:38 AM »

Orchard

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Re: Buffett/Berkshire - general news
« Reply #955 on: November 05, 2018, 08:30:13 AM »
Matt Levine has a very short take on BRK share buybacks which has an interesting quote:
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But it feels presumptuous to think that Berkshire’s shareholders would be better stewards of their cash than Buffett is.

Full take is in the middle of his today's Money Stuff column:
https://www.bloomberg.com/opinion/articles/2018-11-05/expensive-stocks-make-for-good-bonds

Cigarbutt

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Re: Buffett/Berkshire - general news
« Reply #956 on: November 07, 2018, 06:20:06 AM »
This article is an update on the ballot item in Nevada to open up NV Energy's regulated monopoly to more choice.  Obviously NV Energy would still own the distribution infrastructure.  BHE has been spending a lot of money on lobbying / advertising.  Some large individual casinos had already won the right to pay a termination fee and buy their power from an independent producer. 

https://www.politico.com/story/2018/10/27/adelson-buffett-nevada-890190
https://www.rgj.com/story/news/politics/2018/11/06/63-million-spent-defeat-nevadas-question-3-worked/1908835002/

globalfinancepartners

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globalfinancepartners

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Re: Buffett/Berkshire - general news
« Reply #958 on: November 08, 2018, 12:22:38 PM »
Don Graham article on the recent accounting changes that result in goofy net income figures at Berkshire:
https://www.wsj.com/articles/i-cant-see-berkshires-bottom-line-1541636012?mod=searchresults&page=1&pos=1

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #959 on: November 09, 2018, 04:18:58 AM »
A new SEC filing of type SC 13G has appeared, disclosing an 11.3% stake in StoneCo Ltd. (ticker: STNE) of Săo Paulo, Brazil (14,166,748 shares of Common Stock)

None of this is attributable to Berkshire's pension funds - all is held via National Indemnity Company.

The IPO came after 30th Sep 2018 so it will not appear in the 13-F filings which are likely to be released in the middle of next week.

The price since IPO on 25th Oct has been between about $27 and $31 per share. At current price of $27.70, the stake is priced at $392 million USD. The IPO price was $24 per share, Berkhire's stake presumably having cost $340,001,952.

The 13G filing must be made within 10 business days of acquisition of a 5% stake, so it's likely to have been acquired on 25th October at IPO.
« Last Edit: November 09, 2018, 04:50:05 AM by Dynamic »