Author Topic: Buffett/Berkshire - general news  (Read 511471 times)

boilermaker75

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Re: Buffett/Berkshire - general news
« Reply #730 on: March 26, 2018, 04:57:29 AM »
Yea, that is WAY to risky of a trade for me...I dont care what premiums you are getting upfront.  I havent written puts on BRK in the low $100s awhile ago, but I feel like where we are in the market - you really have no idea what is going to happen.  I think if a big vol induced sell-off occurs, that writing both near-dated, and long-dated puts near 1.1x - 1.x2 BV makes a ton of sense.  Back in Jan of 17 one can sell the January 2019 BRK.B Put at $137.5 strike, and collect a premium of $2.20 (bid price).  So, unless you see BRK.B falling ~37% in the next two years, and are happy to own Berkshire at much lower prices…this could be an interesting way to add synthetically to an already established long position.  Of course if the stock rallies, you collect the premium and nothing more...that trade was obviously a home-run. 

Sincerely,
VM

As globalfinancepartners has pointed out my strategy is less risky than yours. If I get put to I end up paying less for my BRKB than you just did.

Think of it as selling insurance with a claim not being a bad thing; essentially you are getting your position at a lower price.

I use put writing to enter all my long term hold position. It is like a limit order that pays me while I wait for a better price. The negative is that you might not get your position, but this has rarely happened for me.

When we were coming out of the financial crisis I was fully invested. I still wrote a lot of puts and rarely was put to. And when I was I sold a covered call and was usually quickly off of margin. So it was kind of like being on margin, but never owing any interest.


gfp

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Re: Buffett/Berkshire - general news
« Reply #731 on: March 26, 2018, 05:13:48 AM »
That USG filing is great.  They're like, "can we get a commitment from you for your block?" And Warren's like, not for free silly!

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #732 on: March 26, 2018, 05:46:15 AM »
That USG filing is great.  They're like, "can we get a commitment from you for your block?" And Warren's like, not for free silly!

Yes, pretty entertaining read, actually. One can almost picture the whole thing going on - and picture those Germans chewing on it right now. I love it!
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gfp

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Re: Buffett/Berkshire - general news
« Reply #733 on: March 26, 2018, 06:12:52 AM »
I'm sure Buffett would much rather receive calls for him to buy large German family owned companies, rather than sell to one.  But maybe it helps again to raise his profile a bit in that group.

Dynamic

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Re: Buffett/Berkshire - general news
« Reply #734 on: March 26, 2018, 09:09:37 AM »
The Bloomberg article I quoted earlier now includes news of USG's rejection of the takeover under the new title:
"Berkshire-Backed USG Rejects $5.9 Billion Takeover by Knauf"

It also shows a surge in the USG stock price, partly from the easing of trade war fears since Friday, no doubt, and partly from the takeover talk I imagine.

gfp

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longinvestor

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  • Never interrupt compounding unnecessarily -Munger
Re: Buffett/Berkshire - general news
« Reply #736 on: March 27, 2018, 06:49:48 AM »
Todd Combs article in Bloomberg

https://www.bloomberg.com/news/articles/2018-03-27/what-do-bezos-buffett-and-dimon-have-in-common-meet-todd-combs

Interesting, I’ve wondered if Combs does become CEO. Age is an edge for him, plus with Precision Castparts, he’s made the biggest ever deal at Berkshire. I suppose he has the blueprint of the future  tattooed on him.

The article suggests mucho apprehension about who in healthcare is in Combs’s crosshairs. “What’s he going to do” “what’s he going to do”



nickenumbers

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Re: Buffett/Berkshire - general news
« Reply #738 on: April 05, 2018, 07:50:12 AM »
https://www.valuewalk.com/2018/04/whitney-tilson-why-the-hell-didnt-i-listen-to-charlie-munger/

Charlie Munger is on our group.  Welcome!  This is amazing and impressive.  I guess he finally got himself a Thinkpad, or maybe he purchased and Iphone.

 :P :P
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zippy1

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Re: Buffett/Berkshire - general news
« Reply #739 on: April 06, 2018, 05:38:41 AM »
https://www.valuewalk.com/2018/04/whitney-tilson-why-the-hell-didnt-i-listen-to-charlie-munger/

Charlie Munger is on our group.  Welcome!  This is amazing and impressive.  I guess he finally got himself a Thinkpad, or maybe he purchased and Iphone.

 :P :P
And the divestment of daily journal!