Author Topic: Buffett/Berkshire - general news  (Read 523982 times)

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1838
Re: Buffett/Berkshire - general news
« Reply #520 on: July 07, 2017, 08:49:52 AM »
Didn't they also buy a "stick built" home builder in Colorado?  Sort of intriguing to me, given some prior comments he's made about his belief that the housing market will perform this year.  Bill Miller is really bullish on homebuilders too, if memory serves.

Clayton has been buying traditional site built homebuilders pretty steadily for a few years now.  Ever since they basically reached their limit as far as market share in manufactured homes goes.  Clayton has a very high market share of their industry when you include all the acquired marks.  The Colorado deal link is a few posts up I believe.  There is a big shortage of skilled carpenters in Colorado and a lot of other markets, which is constraining and slowing the homebuilding business.  But that can be a positive.  Seems like half the people I know are moving to Colorado these days.  Must be nice out there!  (or they're all potheads)


CorpRaider

  • Hero Member
  • *****
  • Posts: 2222
    • The Corpraider
Re: Buffett/Berkshire - general news
« Reply #521 on: July 07, 2017, 03:44:00 PM »
Me too.  Two guys I have worked with just moved out there.  One is really freaking out about getting into the housing market too.  Smells bubbly...but I guess it's a bargain if you're moving from San Fran or TriBeCa.

John Hjorth

  • Hero Member
  • *****
  • Posts: 2853
”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

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1803
  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #523 on: July 11, 2017, 08:12:37 PM »
Didn't they also buy a "stick built" home builder in Colorado?  Sort of intriguing to me, given some prior comments he's made about his belief that the housing market will perform this year.  Bill Miller is really bullish on homebuilders too, if memory serves.

Clayton has been buying traditional site built homebuilders pretty steadily for a few years now.  Ever since they basically reached their limit as far as market share in manufactured homes goes.  Clayton has a very high market share of their industry when you include all the acquired marks.  The Colorado deal link is a few posts up I believe.  There is a big shortage of skilled carpenters in Colorado and a lot of other markets, which is constraining and slowing the homebuilding business.  But that can be a positive.  Seems like half the people I know are moving to Colorado these days.  Must be nice out there!  (or they're all potheads)

Here's one more http://www.builderonline.com/builder-100/strategy/alabama-shakes-clayton-buys-birminghams-harris-doyle-homes_o

The Clayton acquisition is the fifth site-build company added to the nation's largest manufactured home builder, whose market share is 50% of the category, which accounts for seven in 10 homes priced below $150,000.

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 11562
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: Buffett/Berkshire - general news
« Reply #524 on: July 14, 2017, 11:16:32 AM »
https://www.wsj.com/articles/sprint-executives-have-engaged-warren-buffett-about-investment-1500055560

Quote
Sprint Corp. Chairman Masayoshi Son has engaged Warren Buffett and cable mogul John Malone in discussions about participating in a deal with the wireless company, people familiar with the situation say.
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1838
Re: Buffett/Berkshire - general news
« Reply #525 on: July 18, 2017, 03:15:13 PM »

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1803
  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #526 on: July 18, 2017, 05:00:21 PM »
FT has an article about the power imbalances on the US west coast and Berkshire Energy's membership in the regional marketplace for excess energy in the region -

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=4&cad=rja&uact=8&ved=0ahUKEwjRq9e67ZPVAhVJxoMKHYiTCLYQqQIIKigAMAM&url=https%3A%2F%2Fwww.ft.com%2Fcontent%2F10d2852a-68d0-11e7-9a66-93fb352ba1fe&usg=AFQjCNEN9ToaxtiNilm9fUFeqc-OaHpuuw
The Western regional EIM is a pivotal development in the evolution of the utility world from the monopoly days. It's not a coincidence that the vast majority of BHE's assets are there. I read somewhere that the EIM is the face of the deregulation. I've been following the entry of BHE in the west and there's a lot of bickering from the incumbents. There are 38 regional regulators called the Bonneville power administration from the good ol days, plus the state's parochial interests colliding with market forces. Berkshire's billions and keeping rates low are massive disruption.

It would be a great question at the meeting next year. The backdrop of the huge investment in the west and these new developments like the EIM. What's the future etc.
« Last Edit: July 18, 2017, 05:29:29 PM by longinvestor »

Kapitalust

  • Newbie
  • *
  • Posts: 42
Re: Buffett/Berkshire - general news
« Reply #527 on: August 04, 2017, 04:25:26 PM »
2017 Q2 is out: http://www.berkshirehathaway.com/news/aug0417.pdf

$99.7 billion in cash by the end of June  :o

Berkshire's cash pile represents 5.4% of Corporate America's total cash pile (https://www.ft.com/content/2cbc02d4-e0bf-3ece-9f5d-b9b063561e2b)
« Last Edit: August 04, 2017, 04:32:49 PM by Kapitalust »

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1838
Re: Buffett/Berkshire - general news
« Reply #528 on: August 04, 2017, 05:03:04 PM »
Insurance Insider has a good summary of the insurance results - Gen Re is growing premiums under Ajit's leadership, and a previous note mentioned that the TransRe partnership has produced $350m in new premiums to GenRe.
--------------------

AIG deal pushes Berkshire to $22mn underwriting loss
Dan Ascher

Berkshire Hathaway's record-breaking $34bn retroactive reinsurance deal with AIG has pushed the Warren Buffett-led firm's underwriting group to a loss in the second quarter.

The segment, which includes property and casualty as well as life (re)insurance business, swung to a $22mn underwriting loss from a $337mn gain reported for the year-ago period.

Berkshire's collection of underwriting companies, which include personal lines carrier Geico and reinsurer Gen Re, were dragged into the red by a $400mn underwriting loss within Berkshire Hathaway Reinsurance Group, including a $331mn pre-tax retroactive reinsurance deficit.

Berkshire blamed the bulk of that $331mn loss on an unspecified "deferred charge amortization" related to the AIG transaction, as well as another unnamed retro deal written at the end of last year.

The reinsurance group was pushed further into deficit by its life unit which clocked a $121mn loss, primarily due to foreign exchange fluctuations for periodic payment annuity business.

Losses in Berkshire's reinsurance group more than offset gains in all of the financial behemoth's other underwriting units.

Gen Re profits swelled to $25mn from the mere $2mn the direct reinsurer reported this time last year. However the result paled beside the carrier's life and health division which swung to a $39mn profit from a $21mn loss in the second quarter of 2016.

A year ago, Gen Re's property and casualty division put the reinsurer into the black with a $23mn profit. But in the just-ended quarter the unit posted a $14mn loss.

Nevertheless, Gen Re reported a 25 percent uptick in P&C premiums earned for the period, which grew to $777mn driven by more income from direct and broker markets as well as greater participation on renewals.

Meanwhile Buffett's primary underwriting group, which includes National Indemnity Company and Berkshire Hathaway Specialty Insurance, reported a 8.9 percent increase in premiums written, which were $1.8bn for the period just gone.

The group's profitability improved delivering an underwriting gain of $232mn, up by a third on the result posted at this time last year.

Meanwhile, despite a $1bn or 16.7 percent increase in premiums written at Geico, profit fell almost 21 percent to $119mn.

Berkshire said that increases in average Geico policy premiums had failed to offset inflation in claims costs.

The loss produced by the Reinsurance Group's deficit contributed to Berkshire's earnings miss for the quarter, as it posted disappointing net income of $4.262bn, or $2,592 per class A share.

Analysts had expected the company to earn $2,858 a share, according to the average of four estimates collected by MarketWatch.

On an operating basis, the company's profit fell 11 percent to $4.12bn, Reuters reported. The news service said that equated to $2,505 per class A share while analysts had anticipated $2,791.

rb

  • Hero Member
  • *****
  • Posts: 2922
Re: Buffett/Berkshire - general news
« Reply #529 on: August 04, 2017, 05:34:16 PM »
2017 Q2 is out: http://www.berkshirehathaway.com/news/aug0417.pdf

$99.7 billion in cash by the end of June  :o

Berkshire's cash pile represents 5.4% of Corporate America's total cash pile (https://www.ft.com/content/2cbc02d4-e0bf-3ece-9f5d-b9b063561e2b)
Yep at these levels they can afford to do 2-3 elephants over the next couple of years...... should the opportunity arise.