Author Topic: Buffett/Berkshire - general news  (Read 524224 times)

sleepydragon

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Re: Buffett/Berkshire - general news
« Reply #560 on: August 18, 2017, 01:52:29 PM »
He bought for Berkshire Wfc and bac first. Later,he bought Jpm for his personal account because he ran out of banks to buy (interesting he didnt mention citi).  CNBC asked him why he didn't buy Jpm earlier for Berkshire, he said  Wfc are better..
« Last Edit: August 18, 2017, 03:01:52 PM by sleepydragon »


Mephistopheles

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Re: Buffett/Berkshire - general news
« Reply #561 on: August 20, 2017, 03:57:12 PM »
First off, he owns WFC in his personal account too, not just JPM. He bought some WFC I think in the 90s and then during the GFC.

He said he bought JPM in his personal account and not WFC for the conflict of interest, but he already has WFC so I don't get it. Maybe he wanted to avoid buying even more WFC and keep what he has.

My guess is that he doesn't buy JPM for Berkshire because it already has what, like close to $40 billion in WFC/BAC? That and I also think he likes the deposit bases of WFC and BAC and their larger focus on bread and butter banking. JPM's investment bank is bigger portion of its assets than BAC's I believe, and also a bigger derivative book. Yea BAC has Merrill but he also got a steal with the warrant/pfd deal. Having said that, JPM it's still well run and he loves Jamie Dimon as a leader, so he bought in his personal account. Just my opinions.
« Last Edit: August 20, 2017, 03:59:20 PM by Mephistopheles »

Jurgis

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Re: Buffett/Berkshire - general news
« Reply #562 on: August 23, 2017, 11:07:04 AM »
Anecdote fitting the Oncor acquisition situation:

Quote
Despite his cordial demeanor, make no mistake, Buffett is a steely businessman. In just one of hundreds of telling
anecdotes, a trader at Salomon Brothers recounted how Buffett in the early 1970s was in the market for less-thanrobust
bank stocks like Harris Trust. He got a call that a block of Harris stock was available at the market price of
about $49, on which he offered $47. Taken aback, the offering party came back with a bid of $48.50, assuming that
was enough of a discount to the market price to get a deal done, at which point Buffett walked away. As the seller
hit the Street to sell the stock, without any takers, the market price fell, and when it was around $44, he came back
to Buffett offering to sell at that lower price. Buffett's response: "I'll pay $42."

from this week's Barron's article "Warren Buffett's Best Advice" http://www.barrons.com/articles/warren-buffetts-best-advice-and-why-he-doesnt-own-gold-1503115174
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CorpRaider

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Re: Buffett/Berkshire - general news
« Reply #563 on: August 23, 2017, 12:29:51 PM »
The deposits are the moat, is my (very limited) understanding of his analysis.

redskin

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Re: Buffett/Berkshire - general news
« Reply #564 on: August 23, 2017, 07:25:41 PM »
First off, he owns WFC in his personal account too, not just JPM. He bought some WFC I think in the 90s and then during the GFC.

He said he bought JPM in his personal account and not WFC for the conflict of interest, but he already has WFC so I don't get it. Maybe he wanted to avoid buying even more WFC and keep what he has.

My guess is that he doesn't buy JPM for Berkshire because it already has what, like close to $40 billion in WFC/BAC? That and I also think he likes the deposit bases of WFC and BAC and their larger focus on bread and butter banking. JPM's investment bank is bigger portion of its assets than BAC's I believe, and also a bigger derivative book. Yea BAC has Merrill but he also got a steal with the warrant/pfd deal. Having said that, JPM it's still well run and he loves Jamie Dimon as a leader, so he bought in his personal account. Just my opinions.

Why do you think he owns WFC in his personal account?

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #565 on: August 23, 2017, 08:02:17 PM »
First off, he owns WFC in his personal account too, not just JPM. He bought some WFC I think in the 90s and then during the GFC.

He said he bought JPM in his personal account and not WFC for the conflict of interest, but he already has WFC so I don't get it. Maybe he wanted to avoid buying even more WFC and keep what he has.

My guess is that he doesn't buy JPM for Berkshire because it already has what, like close to $40 billion in WFC/BAC? That and I also think he likes the deposit bases of WFC and BAC and their larger focus on bread and butter banking. JPM's investment bank is bigger portion of its assets than BAC's I believe, and also a bigger derivative book. Yea BAC has Merrill but he also got a steal with the warrant/pfd deal. Having said that, JPM it's still well run and he loves Jamie Dimon as a leader, so he bought in his personal account. Just my opinions.

Why do you think he owns WFC in his personal account?

He said so in the meeting this year, it was some bank holding that was subsequently acquired by WFC. Munger has something like this as well, maybe American Express from the 70's or something? Someone asked this same question that insinuated front running. Buffett said that anything Berkshire held or was attractive to BRK was out of bounds for him. He joked that he wants his personal end result to be zero but not that of shareholders.

Every year some small minded questioner asks something like this, insinuating unethical or sleazy behavior. One guy got on the mic and asked him how come he sold his 10 year old cadillac for some $200K? Did he not feel guilty about making money on everything including a used car. Well, it turns out that the money went to a Omaha girls charity. Buffett even told the story of the guy who paid the $200K and on his drive back to NY, was stopped by a trooper for missing number plate and was let go after the driver related the story of the car purchase and showed Warren's signature on the dash.

Too bad the giant screen in the meeting venue only shows the face of the questioner during the question but not after Buffett finishes answering it. I wanted to see the face of guys after such question. Slaps do leave a mark on the cheek but disappears soon, this one should scar grey matter. 

 

rb

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Re: Buffett/Berkshire - general news
« Reply #566 on: August 23, 2017, 09:07:47 PM »
Well I though this was funny.

https://www.reuters.com/article/us-berkshire-hatha-ratings-idUSKCN1B228N

Basically since Berkshire doesn't get to buy oncor S&P wan't cut it's rating. Because 100 billion in your bank account is not enough to keep a AA rating anymore. There's a real pack of geniuses over there at S&P.  ::)

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #567 on: August 24, 2017, 04:43:58 AM »
Well I though this was funny.

https://www.reuters.com/article/us-berkshire-hatha-ratings-idUSKCN1B228N

Basically since Berkshire doesn't get to buy oncor S&P wan't cut it's rating. Because 100 billion in your bank account is not enough to keep a AA rating anymore. There's a real pack of geniuses over there at S&P.  ::)
;D
yeah, they likely also had Lehman and AIG at AAA in 2007. You can't be right all the time, you know.
« Last Edit: August 24, 2017, 04:46:40 AM by longinvestor »

gfp

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Re: Buffett/Berkshire - general news
« Reply #568 on: August 24, 2017, 04:51:17 AM »
I do think it is amusing to Warren and Charlie that Berkshire isn't able to attain the AAA rating anymore.  I remember it being something like, "they hold their cash in treasuries and the USA isn't AAA anymore, so we can't count on the cash being good at the AAA level anymore."  Interesting that it looks like Microsoft, JnJ and Exxon Mobil are still triple A?  Is that out of date or are those the only non financial AAA issuers these days?

I feel like Berkshire's diversification of income streams makes them less likely to default on their debt than the three above.  Maybe no corporates should be rated AAA.

boilermaker75

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Re: Buffett/Berkshire - general news
« Reply #569 on: August 24, 2017, 05:08:44 AM »
First off, he owns WFC in his personal account too, not just JPM. He bought some WFC I think in the 90s and then during the GFC.

He said he bought JPM in his personal account and not WFC for the conflict of interest, but he already has WFC so I don't get it. Maybe he wanted to avoid buying even more WFC and keep what he has.

My guess is that he doesn't buy JPM for Berkshire because it already has what, like close to $40 billion in WFC/BAC? That and I also think he likes the deposit bases of WFC and BAC and their larger focus on bread and butter banking. JPM's investment bank is bigger portion of its assets than BAC's I believe, and also a bigger derivative book. Yea BAC has Merrill but he also got a steal with the warrant/pfd deal. Having said that, JPM it's still well run and he loves Jamie Dimon as a leader, so he bought in his personal account. Just my opinions.

Why do you think he owns WFC in his personal account?

I've seen that stated many times. It would probably take some work for me to find any sources as everything I am recalling was some time ago, (5-15 years?).