Author Topic: Buffett/Berkshire - general news  (Read 538720 times)

scorpioncapital

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Re: Buffett/Berkshire - general news
« Reply #1400 on: December 05, 2019, 01:25:00 AM »
I already see Buffett being quieter, maybe there is truth to his line that he wants to be like the Wizard of Oz and give commands from beyond the grave) Might even be a non-event this way of 'bowing out'. Look at the founders of Google who just bowed out at even an early age.



Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1401 on: December 12, 2019, 11:12:28 AM »
Not exactly news but Berkshire and its main portfolio constituents are up sharply today and Berkshire Class B has broken above $225 for the first time yet it doesn't seem priced for too much optimism unlike perhaps 9th October 2018 when it peaked at $223.64 or so.

gfp

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Re: Buffett/Berkshire - general news
« Reply #1402 on: December 12, 2019, 11:43:46 AM »
For those curious about Tracy Britt Cool's next gig (with a TDG connection thrown in), here is the news on that -
https://www.standard.co.uk/business/warren-buffett-prot-g-e-strikes-out-with-london-stock-market-listing-a4312141.html

gfp

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Re: Buffett/Berkshire - general news
« Reply #1403 on: December 12, 2019, 12:04:14 PM »
A bit of the background on the Tech Data attempt - Berkshire had made a few changes to Apollo's merger agreement that would be more favorable to Tech Data and basically copied the rest of Apollo's lawyers' work.  These were the sweeteners, along with the extra $10 per share.  Apollo still topped them, of course, newly emboldened that Berkshire was willing to pay $140..

"On November 22, 2019, representatives of Berkshire met with Mr. Hume and a representative of BofA Securities. On November 23, 2019, Berkshire submitted a binding written proposal to acquire all of the outstanding shares of Tech Data common stock for $140.00 per share. Berkshire also provided a proposed form of merger agreement, based on the Original Agreement entered into between Tech Data, Parent and Merger Sub, but containing certain terms more favorable to Tech Data, including (1) fully funding the transaction using cash-on-hand at Berkshire, (2) elimination of certain representations and warranties to be made by Tech Data and (3) elimination of a “no material adverse effect” condition to buyer’s obligation to close the merger."

From page 43, "Background of the Merger"
https://www.sec.gov/Archives/edgar/data/790703/000119312519311852/d841970dprem14a.htm#rom841970_32

chesko182

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Re: Buffett/Berkshire - general news
« Reply #1404 on: December 23, 2019, 06:31:01 AM »
did not see this one coming...

Replacing Bill as CEO will be Todd Combs, one of Berkshire Hathaway’s investment managers. “Todd has a strong career in insurance,” said Ajit Jain. “He initially worked at Progressive Insurance Company before going to graduate school to begin an investing career.” Since 2010, Combs has been an investment manager at Berkshire Hathaway.

In addition to becoming GEICO’s CEO, Combs will continue to manage $14 billion of investments for Berkshire Hathaway.

https://www.businesswire.com/news/home/20191223005299/en/GEICO%E2%80%99s-Roberts-Retire-2020-Succeeded-Todd-Combs
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cubsfan

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Re: Buffett/Berkshire - general news
« Reply #1405 on: December 23, 2019, 06:51:17 AM »
Shocker! --  will be interesting to see if they hire another investment manager

rogermunibond

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Re: Buffett/Berkshire - general news
« Reply #1406 on: December 23, 2019, 08:09:02 AM »
I find this quite surprising.  Combs was at Progressive for how long?  Maybe 3-6 years before going to get this MBA?

That's there is no internal GEICO candidate who knows the business and has the confidence of Buffett and Jain is surprising.

StubbleJumper

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Re: Buffett/Berkshire - general news
« Reply #1407 on: December 23, 2019, 08:18:42 AM »
I find this quite surprising.  Combs was at Progressive for how long?  Maybe 3-6 years before going to get this MBA?

That's there is no internal GEICO candidate who knows the business and has the confidence of Buffett and Jain is surprising.


More likely this is a case of longer-term succession planning.  WEB has a successor chosen (maybe Jain?), but chances are that successor is already relatively old.  It's not a bad idea to get a couple of other younger guys a bit more P&C experience, which might make them better positioned for a potential CEO role in 2025 or 2028.


SJ

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #1408 on: December 23, 2019, 09:00:48 AM »
I think the criteria used when hiring Combs and Weschler as investment managers were rather revealing of their characteristics. One criterion was that they demonstrate a good understand of tail risk which is rather crucial to sustaining Berkshire's fortress like balance sheet, and I think Combs' experience in the nitty gritty detail of banks and insurance and he has probably demonstrated to Jain and Buffett that he really gets it and will be sure to eliminate the slightest chance that GEICO gets wiped out by black swan events.

I'm quite glad to see that Roberts is staying on until this time next year which should help smooth the transition.

Munger_Disciple

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Re: Buffett/Berkshire - general news
« Reply #1409 on: December 23, 2019, 10:14:25 AM »
I am sure Combs is a very capable guy and wish him great success at his new gig. It is however a bit worrying that a significant division like GEICO doesn't have an internal candidate for CEO job. Or perhaps Ajit is not too happy with the bench @GEICO, so he is willing to take a gamble on Combs who probably reminds him of himself in 1985. Naturally being CEO of 40,000 people at GEICO is quite different from being an investment manager; time will tell if this is a good move.