Author Topic: Buffett/Berkshire - general news  (Read 552300 times)

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1860
Re: Buffett/Berkshire - general news
« Reply #1460 on: February 13, 2020, 05:49:45 AM »
Wells is the transfer agent for Berkshire's common stock.  Wells also handles a lot of the cash management type stuff for billions of dollars worth of cash and cash equivalents.  Wells is an underwriter (part of a group) on most Berkshire and Berkshire subsidiary bond offerings.

https://www.berkshirehathaway.com/2001ar/commonstock.html


Dynamic

  • Hero Member
  • *****
  • Posts: 595
Re: Buffett/Berkshire - general news
« Reply #1461 on: February 13, 2020, 07:25:12 AM »
Over at the TMFools forum, one post caught my eye; Given that investment gains are to be reported as income, we’re likely to see a monster headline number when earnings come out from Omaha. Buffett has been warning against this very headline focus but it would still be nice to see. I went back to see what other companies reported big earnings and AAPL figures 3 or 4 times in the past decade. And FNM! Berkshire has been in the top 3 a couple of times. Based on the new reporting requirements and the large Apple holdings, we’re rather likely to keep the pole position for the next decade!

I'd guess we're probably talking something like $80 billion +/- $2 billion in 2019 GAAP earnings for Berkshire (now including unrealized gains after deferred taxes). This would beat Apple's 2018 best but probably lag Fannie Mae's 2013 best according to this list:
https://en.wikipedia.org/wiki/List_of_largest_corporate_profits_and_losses
where Saudi Aramco and Vodafone have the top 2 spots at over $100bn in CPI-adjusted dollars.

Something in the $29-33 billion range in 2019Q4 would easily put Berkshire at No.2 in the quarterly records list on the same article, beating $22.2bn for Apple in 2020Q1 but well behind Fannie Mae's $58.7 in 2013Q1, pushing Berkshire's $21.7bn 2019Q1 down to 4th place.

thefatbaboon

  • Sr. Member
  • ****
  • Posts: 489
Re: Buffett/Berkshire - general news
« Reply #1462 on: February 14, 2020, 01:21:13 AM »
Thing is though how much of running bond issues or acting as stock transfer agent or partnering on rail car deals ends up as actual revenue on WFC books?  WFC had approx $80bn revenue last year so the relevant levels are $8bn, $4bn and $1.6bn. 

Also, what happens if it is a one-off?  Say most years its just fee income and commissions for some deal flow, debt issuance and general banking services and these (guessing) are less than $1.6bn of actual Wells revenue.  But every so often Berkshire buys something where Wells is principal owner in something like the Homeservices lending jv mentioned which say Wells is principal owner and therefore all sale amount counts and revenue goes over the $1.6 level.  Do you have to modulate down for one year and then can buy back the next year??


alwaysinvert

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 884
    • värdeinvesteraren
Re: Buffett/Berkshire - general news
« Reply #1463 on: February 14, 2020, 04:17:47 PM »
When was Buffett's last televised interview? Googling tells me he was on CNBC on May 3 but I can't find anything after that and I don't remember anything after the annual meeting rounds. Has he ever stayed out of the media for that long in the last 10 years or so?

Munger_Disciple

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 542
Re: Buffett/Berkshire - general news
« Reply #1464 on: February 14, 2020, 05:01:24 PM »
Wells is the transfer agent for Berkshire's common stock.  Wells also handles a lot of the cash management type stuff for billions of dollars worth of cash and cash equivalents.  Wells is an underwriter (part of a group) on most Berkshire and Berkshire subsidiary bond offerings.

https://www.berkshirehathaway.com/2001ar/commonstock.html

gfp,

Wells Fargo sold the transfer agency business to Equiniti. As a result, EQ Shareowner Services is now the transfer agent and registrar for Berkshire common stock.

https://www.berkshirehathaway.com/2018ar/2018ar.pdf  (page A-3)

-MD

John Hjorth

  • Hero Member
  • *****
  • Posts: 2931
Re: Buffett/Berkshire - general news
« Reply #1465 on: February 14, 2020, 05:41:59 PM »
When was Buffett's last televised interview? Googling tells me he was on CNBC on May 3 but I can't find anything after that and I don't remember anything after the annual meeting rounds. Has he ever stayed out of the media for that long in the last 10 years or so?

Agreed, and somewhat striking.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

ValueMaven

  • Sr. Member
  • ****
  • Posts: 369
Re: Buffett/Berkshire - general news
« Reply #1466 on: February 15, 2020, 11:43:35 AM »
really horrible write-up on Berkshire in Barrons this weekend as a cover story.  Basically calling for a breakup and a dividend...one of the worst piece I've seen on Buffett and Berkshire for sometime. 

What did others thing who read it?

alwaysinvert

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 884
    • värdeinvesteraren
Re: Buffett/Berkshire - general news
« Reply #1467 on: February 15, 2020, 12:43:01 PM »
really horrible write-up on Berkshire in Barrons this weekend as a cover story.  Basically calling for a breakup and a dividend...one of the worst piece I've seen on Buffett and Berkshire for sometime. 

What did others thing who read it?

Can't read it, but at what point does it become anything but "horrible" to call for some action? $200b in cash? $300b? $400b? Obviously he will do whatever he wants but the option value of the next billion at this point is probably pretty close to 0.

Charlie

  • Sr. Member
  • ****
  • Posts: 299
Re: Buffett/Berkshire - general news
« Reply #1468 on: February 16, 2020, 10:26:26 AM »
"really horrible write-up on Berkshire in Barrons this weekend as a cover story.  Basically calling for a breakup and a dividend...one of the worst piece I've seen on Buffett and Berkshire for sometime."

+1

He should have read Buffetts´ comments on the topics....
That doesn't stop him to congratulate himself: "We like to think that Barron’s provides the best coverage of Berkshire anywhere."    ;)

ValueMaven

  • Sr. Member
  • ****
  • Posts: 369
Re: Buffett/Berkshire - general news
« Reply #1469 on: February 16, 2020, 01:06:12 PM »
Extremely poor analysis.  I read it again (waste of my time) ... nothing was mentioned on the quality of management, the diversification of businesses, or frankly WEB's homerun in apple recently.  I get it - there is a limited amount of space to write...however this was a poor article.  Omitted large portions of BRK's overall valuation as well ... the funniest was on the margin side -- ie: GEICO's margins stick vs PGR -- not mentioning the huge market share growth b/c of advertising etc. 

'We like to think that Barron’s provides the best coverage of Berkshire anywhere.' --- LOL