Author Topic: Semper Augustus letter  (Read 42189 times)

longinvestor

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Charlie

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Re: Semper Augustus letter
« Reply #81 on: February 23, 2019, 04:56:45 AM »
Good warm-up read for the annual letter and great Berkshire analysis.  :)


DooDiligence

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Re: Semper Augustus letter
« Reply #82 on: February 23, 2019, 08:17:57 AM »
Outstanding analysis (the parts I'm able to comprehend) & the writing style is off the charts.

I think we may also be in tune with regards to musical tastes.

Here's to hoping Berkshires equity price falls off a cliff on Monday!
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish

longinvestor

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Re: Semper Augustus letter
« Reply #83 on: August 06, 2019, 07:44:31 AM »
http://investorfieldguide.com/bloomstran/

Podcast not the written report. 37 minute marker if you want to cut to the chase.

cubsfan

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Re: Semper Augustus letter
« Reply #84 on: August 06, 2019, 12:43:17 PM »
http://investorfieldguide.com/bloomstran/

Podcast not the written report. 37 minute marker if you want to cut to the chase.

thanks for posting - really enjoyed this

longinvestor

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Re: Semper Augustus letter
« Reply #85 on: August 07, 2019, 04:40:24 AM »
Interesting commentary on earnings accounting inflation @ most S&P companies. He assigns a negative 15% impact to reported earnings by “don’t count that “ accounting. It’ll show up eventually. Usually does as big bath accounting. Take GE as an example! Berkshire’s propensity to keep accounting clean is by itself worth some delta over the S&P. It’ll show up over time.

CorpRaider

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Re: Semper Augustus letter
« Reply #86 on: August 07, 2019, 05:46:24 AM »
I feel like CAPE without all these Seigel adjustments picks a lot of that up too (for macro purposes).  Like, Jeremy...they don't need any help inflating earnings bro...incentives matter.  "Yeah everyone dumped in huge losses in 2008, so let's exclude that...no, let's not do that mmmmkay?"

Going to look at the longer stuff to see what he says/thinks about float.  i.e. if the longer-term recent run rate BRK ROE is 10% what about the float/holdco leverage (that's kind of what I've been thinking).

CorpRaider

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Re: Semper Augustus letter
« Reply #87 on: August 07, 2019, 06:02:51 AM »
Also, fascinating discussion of the GIS proxy/perverse incentives.  I've avoided that one just because I thought management seemed too slick/smarmy via conference calls (even before the acquisition of blue buffalo...I actually kind of liked the Annie's acquisition but some of the decisions make more sense now with his discussion of the incentives); nice to have something more concrete to look at...will be helpful to me in the future.  I also don't invest in any company where they use the term "learnings."

StevieV

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Re: Semper Augustus letter
« Reply #88 on: August 07, 2019, 07:20:45 AM »
Also, fascinating discussion of the GIS proxy/perverse incentives.  I've avoided that one just because I thought management seemed too slick/smarmy via conference calls (even before the acquisition of blue buffalo...I actually kind of liked the Annie's acquisition but some of the decisions make more sense now with his discussion of the incentives); nice to have something more concrete to look at...will be helpful to me in the future.  I also don't invest in any company where they use the term "learnings."

I also thought that was interesting.  As Charlie Munger preaches, always look at the incentives.  Per the podcast, organic growth is incentivized and cost of acquisitions isn't counted.  So, what do you get, an acquisition that costs a lot but can contribute to organic growth going forward.  Only the good (organic growth) is counted.  The bad (high acquisition cost) isn't.

Viking

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Re: Semper Augustus letter
« Reply #89 on: August 18, 2019, 11:56:34 AM »
I am re-reading prior letters... BRK has grown nicely in value during 2019. Shares under $200 look cheap :-)