Author Topic: Buffett/Berkshire - general news  (Read 524219 times)

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #650 on: January 17, 2018, 05:09:22 PM »
Bloomberg with a reminder that Berkshire's reported earnings are going to include unrealized investment fluctuations going forward ->
https://www.bloomberg.com/news/articles/2018-01-17/buffett-s-nightmare-begins-as-earnings-include-stock-swings
Great, that will mean buying opportunities and keep more idiots from buying the stock, because higher Beta moves the stock into risky category, ha.
« Last Edit: January 17, 2018, 05:20:15 PM by longinvestor »


alpha

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longinvestor

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Re: Buffett/Berkshire - general news
« Reply #652 on: January 19, 2018, 07:29:09 AM »
Ajit Jain reports $109 million Berkshire stake

https://www.reuters.com/article/us-berkshire-hathaway-stakes/possible-buffett-successor-jain-reports-109-million-berkshire-stake-idUSKBN1F806A

Management buying stock with their own money, isn't that great? Between Abel and Jain's ownership it is approaching 1B. How much do the heads of the subs own?

rolling

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alpha

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villainx

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Re: Buffett/Berkshire - general news
« Reply #655 on: January 30, 2018, 08:41:36 PM »
I think it was Morgan Housel, but someone said that the past 15+ year BRK outperformance could be due to BRK not having the typical hedge fund fee structure.  However, I'm assuming a lot of the sub CEO's are fairly compensated, so ...:

1) is that assertion true?  if BRK top dogs got typical hedge fees, would performance suffer?
2) more relevant, post Buffet, would compensation impact BRK in a meaningful way?  I guess I look at some of the supposed mini BRK, and they have been motoring a long with - I assume - more than fair compensation to management.  Just wondering.

rb

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Re: Buffett/Berkshire - general news
« Reply #656 on: January 30, 2018, 08:53:56 PM »
I think you are correct in the assumption that BRK managers are fairly compensated. BRK managers have long tenures. if they aren't compensated properly then why would they stay?

Furthermore the initial assertion/premise is ridiculous. Why would an operating manager get compensated like a hedge fund manager? Does that happen anywhere except the proponent's weird imagination? Does Jamie Dimon get 2% of assets and 20% profit of JP Morgan? It's stupid.

As for number 2, no compensation will not impact BRK in a meaningful way post Buffett.

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #657 on: January 31, 2018, 03:28:49 AM »
Actually, compensation is decided by the manager himself/herself. Buffett asks them when they come to Berkshire and he's seldom changed a word in the agreement. He's addressed this at the meeting. Surely, they work out a properly crafted incentive based on microeconomics of the business. It's quite sound this way. No one is likely to ask for the horseshit hedge fund type deal with Buffett. Or his successor. Buffett called that compensation "merely for breathing".
« Last Edit: January 31, 2018, 03:31:23 AM by longinvestor »

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #658 on: January 31, 2018, 03:46:42 AM »
From the 2017 AGM proxy, we know the 2016 compensation of Berkshire SVP & CFO Marc Hamburg as USD 1,550,000 [no bonus that year] plus a bit pension. So I suppose we will see the total compensation of Mr. Jain and Mr. Abel in the 2018 AGM proxy, right?
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DooDiligence

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Re: Buffett/Berkshire - general news
« Reply #659 on: January 31, 2018, 05:29:42 AM »
From the 2017 AGM proxy, we know the 2016 compensation of Berkshire SVP & CFO Marc Hamburg as USD 1,550,000 [no bonus that year] plus a bit pension. So I suppose we will see the total compensation of Mr. Jain and Mr. Abel in the 2018 AGM proxy, right?

That'll be cool to see!

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