Author Topic: Buffett/Berkshire - general news  (Read 650775 times)

Spekulatius

  • Hero Member
  • *****
  • Posts: 4956
Re: Buffett/Berkshire - general news
« Reply #1670 on: June 26, 2020, 04:59:04 PM »
How did they end up owning 9% of this POS (Cattolica, Italian insurer)?
https://www.insurancejournal.com/news/international/2020/06/26/573658.htm
Life is too short for cheap beer and wine.


Xerxes

  • Full Member
  • ***
  • Posts: 244
Re: Buffett/Berkshire - general news
« Reply #1671 on: June 26, 2020, 08:48:49 PM »
AWS

I read that point of view also on Semptus Augustus news letter about Coke peaking in BRk portfolio and Gen Re purchase.

What is really weird is that the writer of Semptus asserts that it was a stroke of genius issuing shares when it was 3x book to buy Gen Re.  One would agree, yet Buffet  complained about the equity that he has to issue and the dilution that took place even if it was at several time book value. 

wescobrk

  • Hero Member
  • *****
  • Posts: 766
Re: Buffett/Berkshire - general news
« Reply #1672 on: June 28, 2020, 05:28:54 AM »
Anyone on the board recall how many companies Buffett put more than 20% of the partnership in? I need to reread the letters.
American Express is an obvious one. Berkshire I'm guessing but not sure about that. Blue Chips? Diversified Retailing? I know Dempster was one and I'm pretty sure Sanborne Maps was another. So, maybe 5x out of his 13 year track record?

Xerxes

  • Full Member
  • ***
  • Posts: 244
Re: Buffett/Berkshire - general news
« Reply #1673 on: July 01, 2020, 07:25:27 PM »
Another article (this time from FT) to be added to the repository of has-buffet-lost-his-touch articles.
https://business.financialpost.com/investing/warren-buffett-lost-his-touch

“If Berkshire is to have the prospects of generating the value it has in the past, it has to adapt by buying these companies that will generate significant value over the next 25 years,” said Christopher Rossbach, chief investment officer of J Stern & Co. J Stern manages money for the Stern family, which has held Berkshire shares for decades, as well as other investors.

“Both Warren and Charlie (Munger, Berkshire’s vice-chairman) have acknowledged that they have missed Amazon and that they should be looking at these companies but they have also said they don’t understand them,” Rossbach said. “They have kept them in the box that Warren has on his desk that says ‘Too hard’. What will it take for them to take these stocks out of the box?”

“Berkshire Hathaway remains designed to reward investors over time but not on time,” said Thomas Russo, a managing member of Gardner Russo & Gardner, which owns Berkshire stock.
“It is one of the reasons we say to people, ‘Don’t be in a hurry to spend that money’,” referring to Buffett’s US$137-billion cash pile. “If you rush it, he could make a mistake.”

“I am nervous that he may have missed this whole rally,” said James Shanahan, an analyst with Edward Jones. “If the rally started in late March and he was a net seller in April, it seems like . . . he missed it all. That’s frustrating. A lot of retail investors were ploughing money into the market and doing better than professional investors. I think you can include Buffett in that.”

“Those two things, I believe, have really tarnished Berkshire’s reputation for dealmaking,” Seifert said of the two investments. The Occidental deal “was an unmitigated disaster.”

dutchman

  • Full Member
  • ***
  • Posts: 114
Re: Buffett/Berkshire - general news
« Reply #1674 on: July 02, 2020, 03:08:23 AM »
Guys is there a real possibility that the courts make them cover business interruption claims? Seems crazy, but Im seeing long articles in wsj/ft making this feel real. We're in a wierd moment right now where anything seems possible.

DooDiligence

  • Hero Member
  • *****
  • Posts: 2308
  • ♪ 🎶 ♫ ♪ 🎶 ♫
Re: Buffett/Berkshire - general news
« Reply #1675 on: July 02, 2020, 05:13:19 AM »
Guys is there a real possibility that the courts make them cover business interruption claims? Seems crazy, but Im seeing long articles in wsj/ft making this feel real. We're in a wierd moment right now where anything seems possible.

Fingers crossed that this is a trend.

https://propertycasualtyfocus.com/two-early-rulings-in-favor-of-insurers-in-covid-19-insurance-coverage-litigation/
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

Investable cash 16% + 18 months of survival $

Mephistopheles

  • Hero Member
  • *****
  • Posts: 1674
Re: Buffett/Berkshire - general news
« Reply #1676 on: July 02, 2020, 07:00:50 AM »
Guys is there a real possibility that the courts make them cover business interruption claims? Seems crazy, but Im seeing long articles in wsj/ft making this feel real. We're in a wierd moment right now where anything seems possible.

I have been wondering this last few days as well. Buffett mentioned during the meeting that the $140 billion cash pile seems like a lot but really is not in the worst case scenario.

What was he referring to? What sort of COVID related scenario can BRK lose that much money in? The obvious one to me is this business interruption but then from my understanding BRK is not on the hook for significant damages there at least the way the contracts are currently written. Was he referring to the courts ruling against insurance cos in this matter or something else entirely?

Cigarbutt

  • Hero Member
  • *****
  • Posts: 2418
Re: Buffett/Berkshire - general news
« Reply #1677 on: July 02, 2020, 07:19:16 AM »
Guys is there a real possibility that the courts make them cover business interruption claims? Seems crazy, but Im seeing long articles in wsj/ft making this feel real. We're in a wierd moment right now where anything seems possible.
Fingers crossed that this is a trend.
https://propertycasualtyfocus.com/two-early-rulings-in-favor-of-insurers-in-covid-19-insurance-coverage-litigation/
Obviously, legal intermediates are looking at every angles and this means higher legal costs but, in substance, this should not result in inappropriate retroactive coverage but, as the judge seems to be pleading, the risk is political. There is presently unusually high activity levels in drafting projects that may have retroactive consequences. IMO, this is soo un-American but what do i know?
---
Irrelevant addition:
In Doodiligence's link, there is a photo of, presumably, the strength of pillars of justice in the US. FWIW, concerning concrete cement infrastructure, it could be argued that the US government has vastly underestimated the depreciation expense (and eventual actual negative cash flows) related to such infrastructure. Of course, governments don't apply this kind of accounting. The use of reinforced concrete has allowed cheaper costs and more elaborate architecture but it contains an inherent flaw whereby the significant rot happens within the reinforced mesh and metastasizes like a cancer before the spalling occurs, revealing the true extent of the useful life of the structure. A temporary way to deal with the issue is to put a safety net.
Signed: a foreign and stupid observer who hopes (with usd-backed fire power) that there are embers behind the potential to make your country great again.
---
Back to Berkshire, general news

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1969
Re: Buffett/Berkshire - general news
« Reply #1678 on: July 02, 2020, 08:06:55 AM »
This has been reported on for a while now, but The NY Times put out a good article detailing some of the fraud at PCP acquisition Wilhelm Shultz.  Makes for an interesting read and sounds like a clear fraud that PCP will be ultimately unable to collect any money on, despite "winning" in arbitration -

https://www.nytimes.com/2020/07/01/business/berkshire-hathaway-fraud-germany.html?action=click&module=Well&pgtype=Homepage&section=Business

UK

  • Full Member
  • ***
  • Posts: 141
Re: Buffett/Berkshire - general news
« Reply #1679 on: July 02, 2020, 08:26:40 AM »
"The question comes more loudly now than at any time since Berkshire missed out on the dotcom boom: has Mr Buffett lost his touch?"

Another article (this time from FT) to be added to the repository of has-buffet-lost-his-touch articles.
https://business.financialpost.com/investing/warren-buffett-lost-his-touch

“If Berkshire is to have the prospects of generating the value it has in the past, it has to adapt by buying these companies that will generate significant value over the next 25 years,” said Christopher Rossbach, chief investment officer of J Stern & Co. J Stern manages money for the Stern family, which has held Berkshire shares for decades, as well as other investors.

“Both Warren and Charlie (Munger, Berkshire’s vice-chairman) have acknowledged that they have missed Amazon and that they should be looking at these companies but they have also said they don’t understand them,” Rossbach said. “They have kept them in the box that Warren has on his desk that says ‘Too hard’. What will it take for them to take these stocks out of the box?”

“Berkshire Hathaway remains designed to reward investors over time but not on time,” said Thomas Russo, a managing member of Gardner Russo & Gardner, which owns Berkshire stock.
“It is one of the reasons we say to people, ‘Don’t be in a hurry to spend that money’,” referring to Buffett’s US$137-billion cash pile. “If you rush it, he could make a mistake.”

“I am nervous that he may have missed this whole rally,” said James Shanahan, an analyst with Edward Jones. “If the rally started in late March and he was a net seller in April, it seems like . . . he missed it all. That’s frustrating. A lot of retail investors were ploughing money into the market and doing better than professional investors. I think you can include Buffett in that.”

“Those two things, I believe, have really tarnished Berkshire’s reputation for dealmaking,” Seifert said of the two investments. The Occidental deal “was an unmitigated disaster.”