Author Topic: Buffett/Berkshire - general news  (Read 674920 times)

physdude

  • Jr. Member
  • **
  • Posts: 90
Re: Buffett/Berkshire - general news
« Reply #1690 on: July 10, 2020, 11:22:07 AM »
My impression, "yeah BRK is really hurt by raising capital that is subordinated to the preferred in this environment."

That is sarcasm, right? (I think it almost definitely is, but just wanted to make sure)


navmehta

  • Newbie
  • *
  • Posts: 12
Re: Buffett/Berkshire - general news
« Reply #1691 on: July 10, 2020, 11:50:20 AM »
My impression, "yeah BRK is really hurt by raising capital that is subordinated to the preferred in this environment."

That is sarcasm, right? (I think it almost definitely is, but just wanted to make sure)

I'm thinking it actually increases the value of Buffett's investment in senior securities in OXY with (1) no negative impact from dilution of subordinated securities and (2) positive impact from lowering the likelihood of OXY filing for bankruptcy with the new money.
« Last Edit: July 10, 2020, 11:53:41 AM by navmehta »

bizaro86

  • Hero Member
  • *****
  • Posts: 1353
Re: Buffett/Berkshire - general news
« Reply #1692 on: July 10, 2020, 01:14:58 PM »
I agree.  My impression reading the article was, "yeah BRK is really hurt by raising capital that is subordinated to the preferred in this environment." ::)

Aren't they just distributing 7 year warrants to shareholders? I doubt that results in any new equity capital on their balance sheet until the 7 years are up. And not at all if they end up distressed before that. But it would dilute some of the conversion upside. If this was a rights offering where they sold new shares for cash I'd agree it was great for the prefs, but that isnt my read of what's happening.

nickenumbers

  • Sr. Member
  • ****
  • Posts: 259
Re: Buffett/Berkshire - general news
« Reply #1693 on: July 14, 2020, 03:42:53 AM »
Why do we think Ajit Jain sold some BRK shares for just under $1MM?  [Info reported on Dataroma as insider transaction.]



08 Jul 09:42   
BRK.A
BERKSHIRE HATHAWAY INC   
JAIN AJIT
Vice Chairman   01 Jul 2020   Sale   5,600   177.735   995,316   I

* D/I = Direct / Indirect
* 10% = Entity with 10% or higher ownership stake
* A = Amendment Filing (SEC Form 4/A)
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

rb

  • Hero Member
  • *****
  • Posts: 3813
Re: Buffett/Berkshire - general news
« Reply #1694 on: July 14, 2020, 03:46:15 AM »
Maybe he wanted to buy a boat??

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2051
Re: Buffett/Berkshire - general news
« Reply #1695 on: July 14, 2020, 06:14:55 AM »
He did not.  His foundation, the Jain Foundation, sold the shares.  Presumably to make donations, fund research, be charitable, meet minimum requirements to remain a tax exempt foundation, etc...

https://www.sec.gov/Archives/edgar/data/1067983/000172845120000003/xslF345X03/primary_doc.xml

Why do we think Ajit Jain sold some BRK shares for just under $1MM?  [Info reported on Dataroma as insider transaction.]



08 Jul 09:42   
BRK.A
BERKSHIRE HATHAWAY INC   
JAIN AJIT
Vice Chairman   01 Jul 2020   Sale   5,600   177.735   995,316   I

* D/I = Direct / Indirect
* 10% = Entity with 10% or higher ownership stake
* A = Amendment Filing (SEC Form 4/A)

nickenumbers

  • Sr. Member
  • ****
  • Posts: 259
Re: Buffett/Berkshire - general news
« Reply #1696 on: July 14, 2020, 09:20:17 AM »
Maybe he wanted to buy a boat??

Okay, I chuckled at that!  You never know.. 
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

John Hjorth

  • Hero Member
  • *****
  • Posts: 3215
Re: Buffett/Berkshire - general news
« Reply #1697 on: July 14, 2020, 01:11:17 PM »
Maybe he wanted to buy a boat??

Okay, I chuckled at that!  You never know..

#metoo! [ : - D] -Well, with a salary of USD 19 M for 2019 [including a bonus of USD 3 M or something like that], I suppose you "just" swipe some plastic if you want to buy "a boat" [not a yacht].
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

rb

  • Hero Member
  • *****
  • Posts: 3813
Re: Buffett/Berkshire - general news
« Reply #1698 on: July 14, 2020, 01:22:36 PM »
John, my friend, that only happens in the movies. In reality they don't let you swipe plastic. I bought a car a couple of years ago and they only let me swipe plastic for $5,000. I had to bring paper for the rest. This wasn't a corner store place either, it was a BMW dealership.

Full disclosure: I gave them a certified cheque. I didn't ask if also took Berkshire stock certificates.

John Hjorth

  • Hero Member
  • *****
  • Posts: 3215
Re: Buffett/Berkshire - general news
« Reply #1699 on: July 14, 2020, 01:31:09 PM »
rb,

You're right. The last time I bought something tangible & expensive [for my part: a car] I paid with a certified cheque, too. Later, I have at my broker bought Berkshire shares in one transaction above that figure in the car transaction - the difference is the broker already knows the cash is present and available.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai