Author Topic: Buffett/Berkshire - general news  (Read 713078 times)

chesko182

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Re: Buffett/Berkshire - general news
« Reply #1440 on: January 29, 2020, 05:16:28 AM »
I thought they never sold anything... more flexibility going forward?

https://finance.yahoo.com/news/lee-enterprises-buy-berkshire-hathaway-114510889.html
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chesko182

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Re: Buffett/Berkshire - general news
« Reply #1441 on: January 29, 2020, 05:19:17 AM »
Warren E. Buffett, Berkshire Hathaway’s Chairman and CEO, said, “My partner Charlie Munger and I have known and admired the Lee organization for over 40 years. They have delivered exceptional performance managing BH Media’s newspapers and continue to outpace the industry in digital market share and revenue. We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry’s challenges. No organization is more committed to serving the vital role of high-quality local news, however delivered, as Lee. I am confident that our newspapers will be in the right hands going forward and I also am pleased to be deepening our long-term relationship with Lee through the financing agreement.”
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petec

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Re: Buffett/Berkshire - general news
« Reply #1442 on: January 29, 2020, 06:16:15 AM »
I thought they never sold anything... more flexibility going forward?

https://finance.yahoo.com/news/lee-enterprises-buy-berkshire-hathaway-114510889.html

3x ebitda? Am I reading that right?
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DooDiligence

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Re: Buffett/Berkshire - general news
« Reply #1443 on: January 29, 2020, 06:44:46 AM »
Warren E. Buffett, Berkshire Hathaway’s Chairman and CEO, said, “My partner Charlie Munger and I have known and admired the Lee organization for over 40 years. They have delivered exceptional performance managing BH Media’s newspapers and continue to outpace the industry in digital market share and revenue. We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry’s challenges. No organization is more committed to serving the vital role of high-quality local news, however delivered, as Lee. I am confident that our newspapers will be in the right hands going forward and I also am pleased to be deepening our long-term relationship with Lee through the financing agreement.”

Apparently Warren & Charlie don't have enough faith in Lee to simply cough up some pocket change to buy them & put the papers in their charge.
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chesko182

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Re: Buffett/Berkshire - general news
« Reply #1444 on: January 29, 2020, 06:48:10 AM »
I thought they never sold anything... more flexibility going forward?

https://finance.yahoo.com/news/lee-enterprises-buy-berkshire-hathaway-114510889.html

3x ebitda? Am I reading that right?

That also jumped out to me... I think what they saw attractive was the financing they got in return. 576mm @9% 52MM in interest which is higher than the 47MM. I'm guessing there's some tax planning behind this too
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5xEBITDA

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Re: Buffett/Berkshire - general news
« Reply #1445 on: January 29, 2020, 06:55:40 AM »
I thought they never sold anything... more flexibility going forward?

https://finance.yahoo.com/news/lee-enterprises-buy-berkshire-hathaway-114510889.html

3x ebitda? Am I reading that right?

More like 3x EBITDA heading to 4-5x, etc.

gfp

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Re: Buffett/Berkshire - general news
« Reply #1446 on: January 29, 2020, 07:01:20 AM »
I don't blame warren for preferring $576 million of long term financing at 9%.  Lee was already running the papers

petec

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Re: Buffett/Berkshire - general news
« Reply #1447 on: January 29, 2020, 07:36:38 AM »
I thought they never sold anything... more flexibility going forward?

https://finance.yahoo.com/news/lee-enterprises-buy-berkshire-hathaway-114510889.html

3x ebitda? Am I reading that right?

More like 3x EBITDA heading to 4-5x, etc.

In which case more than tripling your capital commitment is an odd thing to do even if it does move you higher up the structure.
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5xEBITDA

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Re: Buffett/Berkshire - general news
« Reply #1448 on: January 29, 2020, 08:49:54 AM »
I thought they never sold anything... more flexibility going forward?

https://finance.yahoo.com/news/lee-enterprises-buy-berkshire-hathaway-114510889.html

3x ebitda? Am I reading that right?

More like 3x EBITDA heading to 4-5x, etc.

In which case more than tripling your capital commitment is an odd thing to do even if it does move you higher up the structure.

Edit: nvm
« Last Edit: January 29, 2020, 08:51:40 AM by 5xEBITDA »

redskin

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Re: Buffett/Berkshire - general news
« Reply #1449 on: February 06, 2020, 10:10:00 AM »
Has anyone heard any updates on this proposal?

https://www.barrons.com/articles/berkshire-could-lift-stakes-in-several-big-banks-under-proposed-fed-rule-change-51556217117

Personally, I'll second redskin's question whole-hearted. I can't remember the sources any longer, and I've got no time to dig them up [perhaps it was actually posted by a fellow CoBF on here], but if I remember correctly, Berkshire has asked for permission not to reduce its position in BAC below 10 percent, while it continues to reduce its position in WFC.

Please correct me if I'm wrong, and if I'm not wrong [I may be], what do you get out that? I mean, perhaps, with regard to the forced WFC selling at Berkshire, it may be considered at Berkshire's convenience in the situation. [No kick-a** one-liners from Mr. Buffett nor Mr. Munger for years about WFC being a "good bank" - perhaps for a reason.]

Looks like they finalized the rule change.  It is effective April 30th.
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200130a.htm