Author Topic: Buffett/Berkshire - general news  (Read 774987 times)

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1370 on: November 17, 2019, 01:13:47 PM »
This is an awesome post, Cigarbutt,

I hope you'll take the initiative to make it a starting post for a separate topic in the Investment Ideas forum, so that it does not "drown" here in Berkshire forum. It may be of great value at a later point in time for CoBF members interested in RH.
”In the race of excellence … there is no finish line.”
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gfp

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Re: Buffett/Berkshire - general news
« Reply #1371 on: November 21, 2019, 04:51:06 PM »
Bolt on acquisition at Johns Manville - deal to purchase the Insulation systems business of Illinois Tool Works (ITW)  Not huge, only 100 employees -
https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/johns-manville-announces-acquisition-of-itw-insulation-systems

gfp

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Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1373 on: November 29, 2019, 06:31:30 AM »
It makes me wonder if Buffett chose to tell Becky Quick and reveal the timeline of events in order to remind investment bankers that Berkshire is in the market for cash acquisition opportunities but not for auctions and can give a very quick decision and make a deal very fast with little due diligence if a company has a brief shop around window.

It makes me wonder, as always, how many substantial potential deals come across the desk of Buffett and his deputies.

We know of one failed acquisition in Q4 2018 and this one in Q4 2019 plus the successful OXY funding deal secured in Q2 and closed in Q3 this year. I doubt it's anywhere near as low as three, and if one includes speculative approaches that don't remotely meet the acquisition criteria there could be 50+.

Gamecock-YT

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Re: Buffett/Berkshire - general news
« Reply #1374 on: November 29, 2019, 12:13:35 PM »
Trying to reverse engineer what made them attractive to BRK. ~15% ROIC on average sticks out with lots of FCF.

Spekulatius

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Re: Buffett/Berkshire - general news
« Reply #1375 on: November 29, 2019, 01:28:52 PM »
Trying to reverse engineer what made them attractive to BRK. ~15% ROIC on average sticks out with lots of FCF.

It’s similar to BRK’s TTS in a sense. I strongly believe that Warren is advertising BRK when he talks about this failed deal with Becky Quick. “ Hey we are open for business and can close a deal quickly!”
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ValueMaven

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Re: Buffett/Berkshire - general news
« Reply #1376 on: November 29, 2019, 02:13:06 PM »
Thank you WEB for NOT trying to outbid a silly, second-tier (subjective I know) PE shop.  As your loyal investors - we know what principals you stand on and for. 

scorpioncapital

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Re: Buffett/Berkshire - general news
« Reply #1377 on: November 29, 2019, 03:14:04 PM »
He lost it for 200 million. Isn't that like 1.5 or 2 days of annual profit? Seems trivial...just saying. If anything, the argument would be that he would be outbid again. But maybe not. Even if he was he would have pushed the price higher which is at least a secondary goal of competitive bidding.


Spekulatius

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Re: Buffett/Berkshire - general news
« Reply #1378 on: November 29, 2019, 06:00:32 PM »
He lost it for 200 million. Isn't that like 1.5 or 2 days of annual profit? Seems trivial...just saying. If anything, the argument would be that he would be outbid again. But maybe not. Even if he was he would have pushed the price higher which is at least a secondary goal of competitive bidding.

It’s about 4% and 1/2 year with of profit. BRK is known of naming their price and sticking too it. No if and when or renegotiation. Keeping it simple may cost them some deals, but it will also make their offers a simple proposition and prevents them from becoming duped like OXY did. when they thwarted CVX.
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sleepydragon

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Re: Buffett/Berkshire - general news
« Reply #1379 on: November 29, 2019, 06:06:38 PM »
If it’s 50bn instead of 5b, it may be a different result.
Maybe Buffett’s next deal will be at that size