Author Topic: Buffett/Berkshire - general news  (Read 437315 times)

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1270 on: August 08, 2019, 01:39:36 PM »
Thanks John. It sounds like big bath accounting writing down as much as possible to make the metrics look better in future. I get the impression that Kraft diluted the brand value per share compared to Heinz alone. Not do bad in the US and Canada but not all that great in the rest of the world. I think Berkshire will probably still do okay with KHC in the long run but people who bought at such high prices in ~2017 will suffer poor returns for quite some time.


gfp

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Re: Buffett/Berkshire - general news
« Reply #1271 on: August 14, 2019, 04:23:53 AM »
wsj has an article highlighting Berkshire's $100 Billion investment in Banking / financial services.  Whats the earnings yield on that $100 Billion? 

https://www.wsj.com/articles/warren-buffett-is-a-huge-backer-of-u-s-banks-11565775006?mod=hp_lead_pos6

Quote
In February, Mr. Buffett told CNBC that financial companies are “very good investments at sensible prices, based on my thinking. And they’re cheaper than other businesses that are also good businesses, by some margin.”

He added that banks benefited from the 2018 changes to U.S. tax law and that even in a low-interest-rate environment, some large banks continue to generate outsize returns.

** in other Berkshire related news, the OXY-APC merger closed on August 8th, so $10 Billion has left Berkshire and commenced earning 8%.
« Last Edit: August 14, 2019, 11:19:42 AM by gfp »

SHDL

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Re: Buffett/Berkshire - general news
« Reply #1272 on: August 14, 2019, 02:04:05 PM »
Ackman apparently bought a bunch of BRK B shares recently according to their 13-F.

cubsfan

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Re: Buffett/Berkshire - general news
« Reply #1273 on: August 14, 2019, 02:06:32 PM »
Glenn Greenberg too - 14% position


John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1275 on: August 16, 2019, 01:58:44 AM »
Ackman apparently bought a bunch of BRK B shares recently according to their 13-F.
Glenn Greenberg too - 14% position

Thanks SHDL & Mike,

How do you perceive these moves by Mr. Ackman & Mr. Greenberg?

Remember Mr. Buffett's talk about the issuance of B shares in response to the threatened creation of unit trusts in the 1996 shareholder letter [dated February 28th 1997]?

Tweet by Ed Borgato. I don't understand his "The job is to make money, not land backflips" comment. I understand the first part, not the last one. Perhaps it's lingual for me here, I suppose it means "It doesn't have to be advanced, as long as it makes money" [A bit like "Keep it simple"]. Or perhaps I'm just dumb - thick books can be written about what I don't understand.
« Last Edit: August 16, 2019, 02:05:48 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

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1276 on: August 16, 2019, 02:07:26 AM »
In investing unlike Olympic diving you don't get added points for difficulty.

An investment offering good value in plain sight is still a good investment that can outperform

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1277 on: August 16, 2019, 02:21:58 AM »
Thanks, Dynamic,

I suppose I got it right in the first place. I appreciate the visualization.
”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

cubsfan

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Re: Buffett/Berkshire - general news
« Reply #1278 on: August 16, 2019, 04:14:46 AM »
In investing unlike Olympic diving you don't get added points for difficulty.

That is such a good way to frame it.

I'm also encouraged knowing that Greenberg is a highly concentrated LT investor with few positions that knows his holdings well.
Usually around 10 stocks. He stays out of the spotlight, buying companies that he feels deliver high returns on capital.
Perhaps along the lines of Lou Simpson.

SHDL

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Re: Buffett/Berkshire - general news
« Reply #1279 on: August 16, 2019, 04:58:56 AM »
How do you perceive these moves by Mr. Ackman & Mr. Greenberg?

Hi John, I think it’s a good move. 

I think we have an interesting setup here in that BRK (by which I mean the stock) has done pretty much nothing for a few years now and remains cheap-ish, while a lot of other assets with similar characteristics — high quality, low risk — have really gone up in price.  So if you think that general trend is here to stay then it is probably not unreasonable to expect BRK to join the party sooner or later.

That said, there is one perfectly “rational” explanation for why BRK isn’t hot now, which is that everyone really seems to think that interest rates are going to go much lower and stay there forever — in which case industries like banking and insurance will probably not do so well.  Personally, though, I feel perfectly fine betting against this consensus view by buying/holding BRK.