BK, USB and GS were all being accumulated the previous quarter and are logiical bets. Maybe something new. It’s funny the headlines saying stuff like this Rolfe quote from the WSJ:
What the buybacks signal, in a very big way, is that [Mr. Buffett’s] short list of putting prospective billions to work, either in private businesses or equities, outside of Apple, are nil,” said David Rolfe, chief investment officer of Wedgewood Partners Inc. in St. Louis, which owns Berkshire shares.
No mention of the huge purchases of equities in the quarter or explanation of why the cash balance is declining and didn’t print $120 billion this quarter like it would have, absent massive buying of investments...
Just look at the equity portfolio’s growth in the past 12 months. They have been buying a lot to keep cash at $100 Billion
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in other news, BNSF continues to roll over debt at extremely attractive rates. Look at this 30 year issuance from Q3 -
BNSF’s borrowings are primarily senior unsecured debentures. In the first nine months of 2018, BNSF issued $1.5 billion of senior unsecured debentures due in 2048, including $750 million in the third quarter. These debentures have a weighted average interest rate of 4.1%.
Seems like all the borrowing lately is 2048-49 stuff -
In August 2018, BHFC issued $2.35 million of 4.2% senior notes due in 2048. Such borrowings are fully and unconditionally guaranteed by Berkshire
In July 2018, BHE issued $1.0 billion of 4.45% senior unsecured debt that matures in 2049. BHE subsidiaries also issued debt in July 2018, aggregating $1.05 billion and due in 2049.
And the entire bond portfolio for a company with $736 Billion in invested assets is $17.8 billion at cost ($18.3 at market). An insurance company with a 2.5% allocation to fixed income.
