Author Topic: Buffett/Berkshire - general news  (Read 512625 times)

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1220 on: July 02, 2019, 12:19:59 PM »
Thanks John. I wonder if that's part of the capex detailed in the slide set that was linked to in the Berkshire Hathaway Energy thread or whether it's additional. Nonetheless, it's good to see continued capex that will doubtless offer a good return and in inexpensive, clean and safe generation with only maintenance and renewal costs, not ongoing fuel costs, greatly enhancing the generation efficiency of existing sites where it makes sense to do so.


longinvestor

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Re: Buffett/Berkshire - general news
« Reply #1221 on: July 02, 2019, 12:35:07 PM »
Thanks John. I wonder if that's part of the capex detailed in the slide set that was linked to in the Berkshire Hathaway Energy thread or whether it's additional. Nonetheless, it's good to see continued capex that will doubtless offer a good return and in inexpensive, clean and safe generation with only maintenance and renewal costs, not ongoing fuel costs, greatly enhancing the generation efficiency of existing sites where it makes sense to do so.
I believe that this is not a new investment. Just that all players, Siemens in this case getting their bit of PR out. Given how long the turbine parts are, it makes lots of sense to make it locally which is what Siemens is underlining here. I only travel to Omaha once a year but have always seen one of these long bed trailers on I80. Between local manufacturing, rent payments to farmers and low electricity rates, there are many stakeholders standing behind. At the BHE booth @ the AGM, I sensed a bit of withdrawal as MidAmerican approaches 100% wind capacity in a short time. Where next? Well, there is the other half of Iowa and 49 more states!

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1222 on: July 02, 2019, 03:12:38 PM »
Thank you for your posts, Dynamic & longinvestor,

By an unforced error, - and I apologize for that - I posted the Siemens Gamesa News Announcement here - I actually don't know where my head was, when I was posting it here in the "general news" topic instead of the recently started "Berkshire Hathaway Energy" topic. Let's continue talk about it there instead of here.
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John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1223 on: July 05, 2019, 04:06:20 AM »
Wall Street Journal [July 4th 2019] : Farmers Built a Soybean Export Empire Around China. Now They’re Fighting to Save It.

From the article :

Quote
... Railroads expanded service from the upper Midwest to the Pacific Northwest’s ports, which in turn devoted hundreds of millions of dollars to boost farm-commodity shipments eastward. In the past five years, BNSF Railway Co. has invested over $6.1 billion in its northern corridor, adding or repairing more than 30,000 miles of track and replacing nine million railroad ties. ...
”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

gfp

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Re: Buffett/Berkshire - general news
« Reply #1224 on: July 05, 2019, 04:32:58 AM »
what a disaster the US soybean farming business is right now.  Thankful we were able to get a corn crop in the ground at the last minute on our midwest family farm (Indiana).  The wet fields almost forced planting soy since it can be planted later and still produce a crop.  For the life of me I can't understand per acre farm prices in relation to what the land throws off in average income.  An apartment building would never be valued that way.  Nobody wants to be the one to sell the family farm that has been in the family over a century though...

boilermaker75

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Re: Buffett/Berkshire - general news
« Reply #1225 on: July 05, 2019, 04:39:11 AM »
what a disaster the US soybean farming business is right now.  Thankful we were able to get a corn crop in the ground at the last minute on our midwest family farm (Indiana).  The wet fields almost forced planting soy since it can be planted later and still produce a crop.  For the life of me I can't understand per acre farm prices in relation to what the land throws off in average income.  An apartment building would never be valued that way.  Nobody wants to be the one to sell the family farm that has been in the family over a century though...

My wife's family has a farm in Montgomery county, IN. They got their corn in but many others in Montgomery County could not. I was there July 3 and it was knee high, so will be ok. Passed many farms that were soy.

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1226 on: July 05, 2019, 06:02:22 AM »
what a disaster the US soybean farming business is right now.  Thankful we were able to get a corn crop in the ground at the last minute on our midwest family farm (Indiana).  The wet fields almost forced planting soy since it can be planted later and still produce a crop.  For the life of me I can't understand per acre farm prices in relation to what the land throws off in average income.  An apartment building would never be valued that way.  Nobody wants to be the one to sell the family farm that has been in the family over a century though...

My wife's family has a farm in Montgomery county, IN. They got their corn in but many others in Montgomery County could not. I was there July 3 and it was knee high, so will be ok. Passed many farms that were soy.

It reads a lot like Danish farming, actually [ : - ) ],

Finally I also got the grasp of where the phrase "To bet the farm" comes from. Personally, I'm a believer, that all this tariff stuff will go away eventually by getting settled. I simply can't believe in - so globalized that the whole world is today - that we are at the beginning of an era affected by protectionism. POTUS however must not insult or push too hard on Chinese leadership, or else the whole thing will end in deadlock.

To me, it's mind-boggling that tariffs now have imposed US farming subsidies. To me, that's just so a non-american way to do things.

- - - o 0 o - - -

It's just amazing to think about that there are negative second-order effects from this tariff situation to Berkshire because Berkshire is so vast.

- - - o 0 o - - -

Perhaps I'm wrong. I just can't help being long term optimistic for the future. If I was French, I think "optimist" would be spelled hoptimist, [with a mute "h"] [ ; - ) ].
« Last Edit: July 05, 2019, 06:04:28 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

Poor Charlie

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Re: Buffett/Berkshire - general news
« Reply #1227 on: July 05, 2019, 09:24:51 AM »
For the life of me I can't understand per acre farm prices in relation to what the land throws off in average income.  An apartment building would never be valued that way. 
I’m also surprised farmland has held up so well.  Prices are still above $10,000 per acre in a lot of areas.  At $10,000 per acre, even the most productive farmland is yielding less than a short-term government bond.


Nobody wants to be the one to sell the family farm that has been in the family over a century though...
I dealt with this problem a few years ago.  We had farmland that had been in the family for over 150 years.  It was immaterial in relation to overall resources and generated little cash (in relation to capital value), but my family had a strong emotional attachment to it.  It was indeed tough to get past these non-economic factors during the sale. 

Spekulatius

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Re: Buffett/Berkshire - general news
« Reply #1228 on: July 06, 2019, 05:26:58 AM »
For the life of me I can't understand per acre farm prices in relation to what the land throws off in average income.  An apartment building would never be valued that way. 
I’m also surprised farmland has held up so well.  Prices are still above $10,000 per acre in a lot of areas.  At $10,000 per acre, even the most productive farmland is yielding less than a short-term government bond.


Nobody wants to be the one to sell the family farm that has been in the family over a century though...
I dealt with this problem a few years ago.  We had farmland that had been in the family for over 150 years.  It was immaterial in relation to overall resources and generated little cash (in relation to capital value), but my family had a strong emotional attachment to it.  It was indeed tough to get past these non-economic factors during the sale.

So it looks like at some point AGM is going to be in deep trouble. AGM is farming equivalent of FNM/FRE.
« Last Edit: July 06, 2019, 06:55:13 AM by Spekulatius »
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gfp

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Re: Buffett/Berkshire - general news
« Reply #1229 on: July 11, 2019, 06:59:16 AM »
Not material in any way, but it is 'general news' about Berkshire Hathaway -
https://www.wsj.com/articles/berkshire-hathaways-benjamin-moore-to-become-main-paint-supplier-for-ace-hardware-11562788833

Another note - GEICO will be paying out more than a few claims on vehicles in New Orleans after yesterday's citywide flood.  The small storm headed this way hasn't even arrived yet.  Projections from the Army Corps are that the Mississippi river could briefly overtop 19.6 foot high levees for the first time as the already-high river runs into storm surge pushing the opposite direction.  Yesterday's flood was just a rain event but the flooding came up quick once the pumps were overwhelmed.