Author Topic: Buffett/Berkshire - general news  (Read 670655 times)

gfp

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Re: Buffett/Berkshire - general news
« Reply #1730 on: July 23, 2020, 09:02:04 AM »
I was just commenting that I haven't seen any mention of it on the CNBCs or Bloombergs (that doesn't mean they didn't mention it but I didn't see it) and in the not too distant past they used to cover every disclosed or rumored move Buffett made.  Sign of the times was just referencing that nobody cares what stock Warren Buffett likes these days - after all, he's washed up as a stock picker. 

But yes - it is also true that $800 million of incremental purchases of an already large equity position is not big news for Berkshire.  It could also be the case that they didn't stop buying after the 1st three days.  We'll know soon enough if he has continued since he has to report promptly on this one.

Remember when Buffett buying $800 million worth of stock in the open market used to get reported on by the press?  Sign of the times

gfp, sorry, trying to parse your sarcasm. Which one of these did you mean?
  • (a) $800 million purchase is such a big news that Mainstream press should be making a bigger deal about it. In current times, only some of the press is reporting it and not making a huge deal they would have been making in the past.
  • (b) $800 million is such a tiny amount given Buffett's portfolio.  Sign of times that press has to even report it.


John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #1731 on: July 23, 2020, 09:22:15 AM »
navmehta,

gfp has been around here at CoBF now for more than ten years. gfp has never been involved [at least to my knowledge] in any [heated?] conversation here on CoBF.

To me, gfp always posts facts [based on ""on the ground" basic work" [which over the years has been a lot of valuable sharing!], sometimes spiced with a bit of a personal [forward looking] opinion & judgement - but never any kind of sarcasm.
« Last Edit: July 23, 2020, 09:28:03 AM by John Hjorth »
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LC

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Re: Buffett/Berkshire - general news
« Reply #1732 on: July 23, 2020, 09:39:18 AM »

But yes - it is also true that $800 million of incremental purchases of an already large equity position is not big news for Berkshire.  It could also be the case that they didn't stop buying after the 1st three days.  We'll know soon enough if he has continued since he has to report promptly on this one.


Given the price action today I would guess he is continuing to purchase.
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redskin

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Re: Buffett/Berkshire - general news
« Reply #1733 on: July 23, 2020, 12:35:06 PM »
He bought about 15% of the average daily volume.

gfp

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Re: Buffett/Berkshire - general news
« Reply #1734 on: July 24, 2020, 12:40:05 PM »
If Berkshire doesn't start selling OXY common shares, they will be at 10% with this recent (stock) dividend payment on the preferred.  This prospectus sounds like they are selling, but really it is just a registration statement for the new shares OXY is issuing Berkshire.  If Berkshire doesn't stay below 10% (which they are basically at right now absent some quick sales), they will have to disclose share sales within a few days of each trade - which they tend to avoid when possible.  Maybe they will let it build up.

https://www.sec.gov/Archives/edgar/data/797468/000114036120016019/nt10013471x1_424b7.htm

JPerez

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Re: Buffett/Berkshire - general news
« Reply #1735 on: July 24, 2020, 02:29:42 PM »
They are counting the 80 million  warrants as shares for ownership purposes.
If you take that away it looks like they owned 0 shares other than the 11 million they got as a dividend earlier. So nowhere near the 10%.
They might owned oxy shares in other entities that are not listed in the prospectus.

gfp

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Re: Buffett/Berkshire - general news
« Reply #1736 on: July 24, 2020, 02:46:04 PM »
Interesting - thanks for the clarification.  If that is correct, Berkshire has sold something like 19 million OXY shares that they previously owned, plus at least one batch of 11 million that they had previously been paid as pref. dividends.

scorpioncapital

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Re: Buffett/Berkshire - general news
« Reply #1737 on: July 27, 2020, 05:49:10 AM »
So something like get paid in shares, sell them to recreate the dividend and maybe on the tail-end of the option expiry if the price has risen, get the dividend back and keep the remainder as an equity holding. If things look just as bad in 8 or 9 years, just sell it all out via the shares and consider it a dividend-equivalent? If they got paid entirely in stock instead of dividends what break-even price would recreate their current dividend of 8%?

gfp

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Re: Buffett/Berkshire - general news
« Reply #1738 on: July 27, 2020, 05:59:13 AM »
The OXY shares are issued at 90% of the VWAP for some number of days preceding the dividend declaration.  So they are issued at different prices each quarter.  Berkshire appears to be selling them - perhaps even before they are delivered as they have sometimes done in the past.  I would not be surprised, if OXY has it right in this registration filing, to learn that Berkshire was pre-selling the dividend shares and ending up with a zero share position upon delivery. (not counting the warrants of course, which are at a very high strike)

sleepydragon

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Re: Buffett/Berkshire - general news
« Reply #1739 on: July 27, 2020, 06:13:10 AM »
The OXY shares are issued at 90% of the VWAP for some number of days preceding the dividend declaration.  So they are issued at different prices each quarter.  Berkshire appears to be selling them - perhaps even before they are delivered as they have sometimes done in the past.  I would not be surprised, if OXY has it right in this registration filing, to learn that Berkshire was pre-selling the dividend shares and ending up with a zero share position upon delivery. (not counting the warrants of course, which are at a very high strike)

May not be a bad idea for Buffett to keep the shares at this price though. Berkshire shareholders can own a big part of the Permian Basin which could be the future Saudi.
I just finished reading “ Saudi America: The Truth About Fracking and How It's Changing the World”, which was recommended from the Annual meeting. Interesting Buffett read this book and still invested in OXY.