Author Topic: Buffett/Berkshire - general news  (Read 521579 times)

Cigarbutt

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Re: Buffett/Berkshire - general news
« Reply #1360 on: November 05, 2019, 12:25:49 PM »
The Applied sale gets more complicated.
Regulatory noise and overreach or do they feel like corners are being cut?
http://www.insurance.ca.gov/0400-news/0100-press-releases/2019/release086-19.cfm
Whatever the situation, the California Department of Insurance is very powerful and the strategy put forth by Applied seems to be counter-productive and is becoming more and more distanced from Berkshire's etiquette.


xo 1

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Re: Buffett/Berkshire - general news
« Reply #1361 on: November 05, 2019, 01:14:39 PM »
The Applied sale gets more complicated.
Regulatory noise and overreach or do they feel like corners are being cut?
http://www.insurance.ca.gov/0400-news/0100-press-releases/2019/release086-19.cfm
Whatever the situation, the California Department of Insurance is very powerful and the strategy put forth by Applied seems to be counter-productive and is becoming more and more distanced from Berkshire's etiquette.
Agreed.  It's speculation, but each twist provides more rationale for why Berkshire abandoned its never-sell approach for Applied.

Spekulatius

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Re: Buffett/Berkshire - general news
« Reply #1362 on: November 05, 2019, 03:50:07 PM »
The Applied sale gets more complicated.
Regulatory noise and overreach or do they feel like corners are being cut?
http://www.insurance.ca.gov/0400-news/0100-press-releases/2019/release086-19.cfm
Whatever the situation, the California Department of Insurance is very powerful and the strategy put forth by Applied seems to be counter-productive and is becoming more and more distanced from Berkshire's etiquette.

These guys are slimy. Every fight with the regulator tends to be a lost one. Good riddance.
Life is too short for cheap beer and wine.

CassiusKing1

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Re: Buffett/Berkshire - general news
« Reply #1363 on: November 14, 2019, 01:54:18 PM »

jschembs

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Re: Buffett/Berkshire - general news
« Reply #1364 on: November 14, 2019, 01:57:06 PM »
Restoration Hardware and Occidental Petroleum bought during 3Q.

https://www.cnbc.com/2019/11/14/warren-buffetts-berkshire-hathaway-reveals-new-stake-in-furniture-retailer-rh-shares-surge.html

Can't say I understand the RH purchase. CEO touting a new business model with magical 50+% ROIC for a furniture retailer, while borrowing heavily to repurchase shares and battling short sellers.

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1365 on: November 14, 2019, 02:31:11 PM »
I know nothing of RH, but would be interested to hear any opinions about why they might have purchased.

Apple was trimmed very slightly, quite possibly by Ted or maybe Todd to buy something else. I'd imagine Warren's share is unchanged

As per the other thread, CNBC is slightly off on the Wells Fargo holding and the percentage sale because they omit the Gen Re holding via New England Asset Management's 13F-HR which is about 23 million shares.
WFC: Wells Fargo & Co New: -7.27% change 400,949,218 shares held, keeping it safely below 10% which they presumably dare not cross.

sleepydragon

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Re: Buffett/Berkshire - general news
« Reply #1366 on: November 14, 2019, 03:27:08 PM »
I know nothing of RH, but would be interested to hear any opinions about why they might have purchased.

Apple was trimmed very slightly, quite possibly by Ted or maybe Todd to buy something else. I'd imagine Warren's share is unchanged

As per the other thread, CNBC is slightly off on the Wells Fargo holding and the percentage sale because they omit the Gen Re holding via New England Asset Management's 13F-HR which is about 23 million shares.
WFC: Wells Fargo & Co New: -7.27% change 400,949,218 shares held, keeping it safely below 10% which they presumably dare not cross.

My wife has spent about 20k on just 3 pieces of RH furnitures since we bought our house.
It’s about the time I become a partial owner of this company. Lol.

Their accounting is a mess. Once my wife bought a sofa and exchanged portion of the sofa like 5 times (there was a small mis-match of colors) Each time they bill and credit a different amount. In the end, we found we spent 3000 less.

But they do have very beautiful furnitures. Like Apple and Dyson. Attacking a low profit industry with premium products.




John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1367 on: November 14, 2019, 10:40:36 PM »
RH Homepage.

From ""About Us" :

Quote
RH is a curator of design, taste and style in the luxury lifestyle market, offering furniture, lighting, textiles, rugs, bathware, décor and outdoor, as well as baby & child and teen products.

Our collections of timeless, updated classics and authentic reproductions provide a unique point of view and an unmatched combination of inspired design and unparalleled quality. Each season brings a wealth of new ideas culled from our partnerships with the world's most renowned artisans, allowing us to showcase their unique products, passion and vision.

RH has galleries and outlets throughout the US and Canada, while our source books and websites serve as virtual extensions and compelling tours of the brand. We publish RH Interiors, RH Modern, RH Outdoor, RH Lighting, RH Rugs, RH Baby & Child and RH TEEN source books.


From "Corporate Profile" :

Quote
We believe RH is one of the most innovative and fastest growing luxury brands in the home furnishings marketplace. We believe our brand stands alone and is redefining this highly fragmented and growing market, contributing to our superior sales growth and market share gains over the past several years as compared to industry growth rates. Our ability to innovate, curate and integrate products, categories, services and businesses with a completely authentic and distinctive point of view, then rapidly scale them across our fully integrated multi-channel infrastructure is a powerful platform for continued long-term growth. We evolved our brand to become RH, positioning our Company to curate a lifestyle beyond the four walls of the home. Our unique product development, go-to-market and supply chain capabilities, together with our significant scale, enable us to offer a compelling combination of design, quality and value that we believe is unparalleled in the marketplace.

- - - o 0 o - - -

Price differentiation based on membership, and even a special RH credit card. As sleepydragon already said, an "Eco-system", based on taste and choice of lifestyle.
« Last Edit: November 14, 2019, 11:43:16 PM by John Hjorth »
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Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1368 on: November 15, 2019, 03:47:01 AM »
OK, thanks, that's interesting and potentially a reasonable moat of loyalty and lock in and a certain cachet among the less price sensitive clientele. Also potential for riding a growth wave to higher valuations, at first sight.

Some of the middle market furniture companies like DFS Furniture in the UK (which has been public then private more than once) also have some attractive working capital characteristics like low inventory, making products to be delivered only after receiving payment or setting up finance, so there could even be interesting angles on that side, enabling them to finance rapid expansion and extensive advertising. I owned some DFS shares for about a year or two since Oct 2001 at about 9% FCF yield and the proceeds went towards my original Berkshire Hathaway stake in July 2003. I got the impression it was a little risky in the event of a recession, especially being somewhat debt levered, so I'd rather hold Berkshire long term but I think private equity took it private since then and I haven't looked at it since except when trying to look up historical prices to reconstruct my past investment ledger. But there's certainly scope for quality compounding in home furnishings in many sections of the market.

Cigarbutt

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Re: Buffett/Berkshire - general news
« Reply #1369 on: November 15, 2019, 06:31:07 AM »
... Also potential for riding a growth wave to higher valuations, at first sight...
...
Read this AM in an unrelated (?) article: "To us, this entire expansion highlights the fact stocks in general don’t need rapid productivity or GDP growth to rise."
To me, this eco-system doesn't make any sense and maybe I have some wework to do. :)