Author Topic: What company should Berkshire buy?  (Read 17717 times)

gfp

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Re: What company should Berkshire buy?
« Reply #20 on: February 25, 2018, 05:32:09 PM »
Ferromex or Kansas City Southern might be possibilities for rails.  Don't think CSX deal would pass regulators.  They are far from tapped out on US utilities and they will continue to attempt to buy utilities if they are available for sensible prices.  They will also likely make huge investments in a nationwide high voltage grid.  Maybe AEP gets bought?  Or the California utility with wildfire liability problems?

Any of 3G's projects could come into the wholly owned subsidiary fold for Berkshire.  Anyone Byron Trott is working with on the private, family owned side (Pilot Flying J was most recent) could come to BRK at any moment.  Auto Dealership groups, more realtors, whatever PCP ends up buying..

The literal next company to close is probably MLMIC, the New York mutual medical malpractice liability insurer.  But that was already announced.


Spekulatius

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Re: What company should Berkshire buy?
« Reply #21 on: February 25, 2018, 05:50:44 PM »
I think BRK will do some sort of a deal with GE. There are just on many tangents- their insurance business, their leasing business (where cost of capital is important), pension management, equity injection, partnership in business (locomotives?) or a leading stake. The Buffet halo alone will be very valuable for GE, as it was for BofA.
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gfp

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Re: What company should Berkshire buy?
« Reply #22 on: February 25, 2018, 06:04:53 PM »
you may be right.  They already bought their tank car leasing business and stuck it in UTLX.  There are pieces BRK would want at the right price but I don't see them buying the whole thing without new management

I think BRK will do some sort of a deal with GE. There are just on many tangents- their insurance business, their leasing business (where cost of capital is important), pension management, equity injection, partnership in business (locomotives?) or a leading stake. The Buffet halo alone will be very valuable for GE, as it was for BofA.

rb

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Re: What company should Berkshire buy?
« Reply #23 on: February 25, 2018, 06:23:43 PM »
Reckitt Benkiser would be a nice business in Berkshire. But I think there's zero chance in that. It would make sense to buy it with Kraft Heinz and there's zero chance that RB guys will agree to that.

As others said, they're far from tapped out in utilities. They may even buy a large foreign utility like National Grid.

I also don't see why they can't keep buying smaller (relatively) companies. I think that a company like Meggitt would do great inside of Berkshire.

I mentioned a few foreign name in here because I think in the future we'll see more foreign acquisitions.

Eye4Valu

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Re: What company should Berkshire buy?
« Reply #24 on: February 25, 2018, 09:53:41 PM »
L Brands Inc (LB) because it appears to be selling for a reasonable price, and you can have the Victoria's Secret Angels strut their stuff at the next annual meeting!  ;)
« Last Edit: February 25, 2018, 09:55:33 PM by Eye4Valu »

rb

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Re: What company should Berkshire buy?
« Reply #25 on: February 25, 2018, 09:57:47 PM »
L Brands Inc (LB) because it appears to be selling for a reasonable price, and you can have the Victoria Secret's Angels strut their stuff at the next annual meeting!  ;)
Well nobody can argue with that on the face of it. But somehow it has an unBerkshirey feel.

Eye4Valu

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Re: What company should Berkshire buy?
« Reply #26 on: February 25, 2018, 10:13:43 PM »
L Brands Inc (LB) because it appears to be selling for a reasonable price, and you can have the Victoria Secret's Angels strut their stuff at the next annual meeting!  ;)
Well nobody can argue with that on the face of it. But somehow it has an unBerkshirey feel.

I agree, but it would be entertaining!

BG2008

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Re: What company should Berkshire buy?
« Reply #27 on: February 25, 2018, 11:11:57 PM »
What about GE? Yes, there's a lot of issues.  But they tend to be #1 or 2 in most of their product categories.  Clearly Immelt has been a waste of space for the last 15-20 years.  I remember him speaking to my Mech/Aero engineering class at Cornell in the early 2000s.  I always felt that Welch's shoes were too big to fill.  Maybe 3G's strategy may actually work at GE by streamlining that business.

rb

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Re: What company should Berkshire buy?
« Reply #28 on: February 25, 2018, 11:39:14 PM »
What about GE? Yes, there's a lot of issues.  But they tend to be #1 or 2 in most of their product categories.  Clearly Immelt has been a waste of space for the last 15-20 years.  I remember him speaking to my Mech/Aero engineering class at Cornell in the early 2000s.  I always felt that Welch's shoes were too big to fill.  Maybe 3G's strategy may actually work at GE by streamlining that business.
I'm sorry but that is complete horseshit. Jack Welch is so revered only because the stock has done well. That and great timing - he retired while the stock was on the top. The problems that GE is facing can be traced back to Welch. Meet the numbers, beat the numbers at all costs - Welch. Juice earnings by under funding pensions - Welch. By the way that liability is now 1/4 of GE's market cap. But sure Welch was awesome because he gave a great speech at Cornell.

Welch created a rotten culture at GE and that rot has continued to spread. That rot has created spores which now permeate the management ranks at GE. I would love it for Berkshire to buy parts of GE but why would I want to bring that pit of dirty vipers into my pristine home? Maybe they'll pick off some peripheral divisions. But the only way I'd like for Berkshire to swallow big chunks of GE is together with 3G. Where they have the 3G guys go in and fire everyone and start from scratch with management.

nickenumbers

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Re: What company should Berkshire buy?
« Reply #29 on: February 26, 2018, 05:53:20 AM »
Could Berkshire buy CHICK-FIL-A?

I know it is private, and he owns Dairy Queen.

Just a thought.
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