Author Topic: Buffett/Berkshire - general news  (Read 773948 times)

fareastwarriors

  • Hero Member
  • *****
  • Posts: 4103
Re: Buffett/Berkshire - general news
« Reply #670 on: February 11, 2018, 10:48:24 PM »


alpha

  • Full Member
  • ***
  • Posts: 226
Re: Buffett/Berkshire - general news
« Reply #671 on: February 13, 2018, 06:10:31 PM »

Phillips 66 is going to buy back 3.28 billion worth of shares from BRK for $93.72 per share to keep BRK's holdings under 10%


https://www.reuters.com/article/us-phillips-66-buyback-berkshire/phillips-66-to-buy-back-35-mln-shares-from-berkshire-hathaway-idUSKCN1FX33G

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2134
    • scorpion capital
Re: Buffett/Berkshire - general news
« Reply #672 on: February 14, 2018, 01:52:04 AM »
"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10 percent,” Buffett said in a statement."

I'm not too clear - this is not a bank stock, does Berkshire have a sub-10% requirement for refinery/oil stocks too? It sounds like in this case regulatory requirements were too onerous - but what would they be?  Also, is it correct to understand that *either* Berkshire desires to own <= 10% of this OR it can own 100% (a full buyout) but not anything in-between?

longinvestor

  • Guest
Re: Buffett/Berkshire - general news
« Reply #673 on: February 14, 2018, 03:46:06 AM »
"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10 percent,” Buffett said in a statement."

I'm not too clear - this is not a bank stock, does Berkshire have a sub-10% requirement for refinery/oil stocks too? It sounds like in this case regulatory requirements were too onerous - but what would they be?  Also, is it correct to understand that *either* Berkshire desires to own <= 10% of this OR it can own 100% (a full buyout) but not anything in-between?

Believe it is the SEC reporting requirement of 3 days versus 3 months.

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2150
Re: Buffett/Berkshire - general news
« Reply #674 on: February 14, 2018, 05:50:43 AM »
If I had to guess it was probably more about FERC and/or DOT regulators that Berkshire Hathaway Energy deals with.  It is possible that over 10% they start to consider PSX assets when Berkshire seeks certain approvals.

Another possibility is that it was PSX's idea to buy the block, Warren was OK with it, and they used it as an excuse.

"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10 percent,” Buffett said in a statement."

I'm not too clear - this is not a bank stock, does Berkshire have a sub-10% requirement for refinery/oil stocks too? It sounds like in this case regulatory requirements were too onerous - but what would they be?  Also, is it correct to understand that *either* Berkshire desires to own <= 10% of this OR it can own 100% (a full buyout) but not anything in-between?

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2134
    • scorpion capital
Re: Buffett/Berkshire - general news
« Reply #675 on: February 14, 2018, 02:08:31 PM »
Seems Buffett has sold out almost the entire IBM position. Did he find something better than 11x earnings or better prospects and is loading his cash reserves?


gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2150
Re: Buffett/Berkshire - general news
« Reply #676 on: February 14, 2018, 02:16:11 PM »
He's been liquidating it for a while now, and mentioned he was still selling in a fairly recent CNBC interview.  I'm surprised he sold almost all of it before December 31st, since he had mentioned having high basis and low basis shares and choosing the shares he was selling before and after the new year.  I guess he didn't really have many low-basis shares left.  I don't think it is about finding something "better" - but rather moving on from a position that did not work out as he originally saw it going.  I do like to see the mental flexibility to change his mind, even with the cover of his whole "ideal holding period is forever" and a 4% dividend yield to justify holding.  It's amazing how much confidence he has in Apple - that position is getting really big.  Far bigger, at cost, than any other stock purchases in his life.

Seems Buffett has sold out almost the entire IBM position. Did he find something better than 11x earnings or better prospects and is loading his cash reserves?

Sharad

  • Full Member
  • ***
  • Posts: 159
    • Blogging About Money
Re: Buffett/Berkshire - general news
« Reply #677 on: February 15, 2018, 02:48:08 PM »
A pretty negative article on Buffett was recently published. I'm only going to read Market Watch's analysis of said publication. Here is Market Watch's take:

https://www.marketwatch.com/story/why-warren-buffett-is-a-prime-example-of-the-failure-of-american-capitalism-2018-02-15
"If we are not able to ask skeptical questions, to interrogate those who tell us that something is true, to be skeptical of those in authority, then we are up for grabs for the next charlatan - political or religious - who comes ambling along."
- Carl Sagan

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2134
    • scorpion capital
Re: Buffett/Berkshire - general news
« Reply #678 on: February 15, 2018, 02:51:53 PM »
"“Companies in Buffett’s portfolio have extorted windfall profits, ripped off taxpayers, and abused customers,” he says, adding that Buffett “makes no secret of his fondness for monopoly. He repeatedly highlights the key to his personal fortune: finding businesses surrounded by a monopoly moat, keeping competitors at bay.”"

Hmmm, same as governments I would say - another side of the coin. Government is the ultimate monopoly.


gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2150
Re: Buffett/Berkshire - general news
« Reply #679 on: February 15, 2018, 03:20:49 PM »
Interesting that "moat" is now equal to "monopoly"...  Apparently the United States is not supposed to allow any competitive advantage, brand name or otherwise

additionally, the author of the article in "the nation" appears to think Buffett is an investor in TransDigm.  News to me....

"Buffett takes full advantage of tax loopholes. He uses Berkshire Hathaway, a valuable tax shelter, for his investments."  We should all stash our investments in a C-corp.  Way to stick it to the government warren
« Last Edit: February 15, 2018, 04:16:43 PM by globalfinancepartners »