Buffett/Berkshire - general news

[gfp]

We probably won't know until they make a filing.  I would guess that it has his usual redemption premium (~10%) and it is possible that it is a compounding security that earns 9% on accrued dividends (ie, doesn't pay cash dividends)

BRK's $3 Billion preferred shares will accrue a 9% coupon

Plus something?  Sweeteners?

[longinvestor]

We probably won't know until they make a filing.  I would guess that it has his usual redemption premium (~10%) and it is possible that it is a compounding security that earns 9% on accrued dividends (ie, doesn't pay cash dividends)

BRK's $3 Billion preferred shares will accrue a 9% coupon

Plus something?  Sweeteners?

Berkshire gets 1.75% of the BK-TH company, per the NYT report

[gfp]

http://www.cnbc.com/id/102052785
- initial CNBC report

http://www.berkshirehathaway.com/news/OCT0214.pdf
- Berkshire / Van Tuyl group joint press release

No information on price so far, but it looks around the same size as Sonic Automotive.

[peter1234]

http://www.cnbc.com/id/102052785
- initial CNBC report

http://www.berkshirehathaway.com/news/OCT0214.pdf
- Berkshire / Van Tuyl group joint press release

No information on price so far, but it looks around the same size as Sonic Automotive.

I thought he only needed a new car. Now he buys the dealership...
 

[Charlie]

http://www.businessinsider.com/warren-buffett-speaks-on-cnbc-oct-2-2014-10

[fareastwarriors]

http://www.cnbc.com/id/102052785
- initial CNBC report

http://www.berkshirehathaway.com/news/OCT0214.pdf
- Berkshire / Van Tuyl group joint press release

No information on price so far, but it looks around the same size as Sonic Automotive.

I thought he only needed a new car. Now he buys the dealership...
 

went in for a car and came out with a dealership

[longinvestor]

Cross sell Geico.

Loan working capital to dealership for inventory. Put that $55B to work.

Financing car purchases?  Or partner with WFC for referrals ? Underwrite leases? GM partnership?

 Clayton Homes comes to mind.

[fareastwarriors]

more general news on the deal


http://online.wsj.com/articles/berkshire-to-buy-car-dealership-group-1412253366?mod=WSJ_hp_LEFTTopStories

Warren Buffett Buys New-Car Retail Chain

Legendary Investor Says He Plans to Buy More Dealerships Over Time

[fareastwarriors]

Buffett Nabs Car Dealership As First Step Into Fragmented Market

http://blogs.wsj.com/moneybeat/2014/10/02/buffett-nabs-car-dealership-as-first-step-into-fragmented-market/

[Palantir]

Similar in theme to his regulated investments, I guess, auto dealerships only exist because they are required to exist, and once you have enough scale, I assume it's hard for another guy to break in.