Author Topic: Buffett/Berkshire - general news  (Read 711581 times)

wescobrk

  • Hero Member
  • *****
  • Posts: 794
Re: Buffett/Berkshire - general news
« Reply #1870 on: September 15, 2020, 06:22:44 AM »
I don't know if it was Ted or the other chap but I bet they wish they didn't sell Amazon earlier in the year. Not sure how they missed that one. They could have put several hundred million of their cash to work.
I know they have helped Buffett in a lot of ways outside of portfolio management but they haven't exactly hit the ball out of the mark with the money they have managed over the last several years.

Berkshire is only 4000 Amazon shares off their all time high share count.  I don't think it was a meaningful sale of Amazon shares and it may not have been a sale at all with various subsidiary divestitures over the last year making it look like Berkshire was selling shares (DVA for instance) when they were not.

Thanks for pointing out the small number. I guess I was frustrated they didn't buy any after a huge sell off.

That's true. I guess we won't ever know until the sad day Warren passes away since they have never spoken to Berkshire shareholders.


bizaro86

  • Hero Member
  • *****
  • Posts: 1405
Re: Buffett/Berkshire - general news
« Reply #1871 on: September 15, 2020, 08:45:14 AM »
If buying SNOW a profitable trade, why complaining?
I would bet this is a short term trade, properly hedged.
The rational of this trade has more to do market structure and supply and demand than value investing.

I am extremely (honestly!) curious how one would hedge an IPO allocation of a stock?

How about shorting a basket of public companies in the same industry but are more over valued? I.e CRM?

Or maybe they just have some insights that you don’t have? Maybe they have used SNOW’s product and found it’s extremely useful and have huge scalability? What insights you have that others don’t have so you have the confidence to discredit their investment decision?

You said you thought it was a short term hedged trade. I like learning new things, so wanted to know how you thought they might have done that.

I don't have any insights of any kind, and have no opinion on whether this is a good idea. I'm a bit concerned it is outside their circle of competence, but cloud databases are so far outside my circle of competence I have no idea what valuation is appropriate here. I certainly wasn't trying to discredit their decision, and that's not what the words that I wrote say.

Edited to add: I really like market structure/capital structure arbs, and do them often.

Gregmal

  • Hero Member
  • *****
  • Posts: 4556
Re: Buffett/Berkshire - general news
« Reply #1872 on: September 15, 2020, 09:02:36 AM »
Personally I think its crazy the amount of focus being given to this when you look at the size of the investment vs Berkshire's total capital...

Additionally, whats wrong with doing this? I do similar things with the capital I have at my disposal...granted, not a few hundred million but still, speculating on small amounts is perfectly fine. Heres a newsflash for folks...over the past decade, investments like SNOW have worked wonderfully, whereas a good many of the ones put on by Berkshire under the "old formula" and many value investors, have not. Are people averse to making money? I would wager a good amount that this trade makes BRK some money.

fareastwarriors

  • Hero Member
  • *****
  • Posts: 3935
Re: Buffett/Berkshire - general news
« Reply #1873 on: September 15, 2020, 09:52:00 AM »

fareastwarriors

  • Hero Member
  • *****
  • Posts: 3935
Re: Buffett/Berkshire - general news
« Reply #1874 on: September 15, 2020, 04:28:45 PM »


Snowflake is selling shares at $120 in its IPO, initially valuing the company at $33.3 billion.

The company raised its price range on Monday to between $100 and $110.

Snowflake is poised to be the biggest IPO in a heavy week for tech offerings.


https://www.cnbc.com/2020/09/15/snowflake-prices-ipo-above-increased-range-implying-initi.html

Gregmal

  • Hero Member
  • *****
  • Posts: 4556
Re: Buffett/Berkshire - general news
« Reply #1875 on: September 16, 2020, 08:55:24 AM »
God damn it. The obvious was obvious. One can talk about the lockup, but a 100% head start aint bad. Perhaps now that Berkshire is doing it, people will dare to think(and maybe even venture) a little outside of their comfort zone.

aws

  • Full Member
  • ***
  • Posts: 243
Re: Buffett/Berkshire - general news
« Reply #1876 on: September 16, 2020, 09:58:54 AM »
I'm more inclined toward thinking we are somewhere in the 1999-2000 timeline with these tech IPOs.  What is it now with this pop, like 150x revenue?  It's working now but how many companies can trade at such insane valuations?  Are they all going to get 100% revenue growth a year?

wescobrk

  • Hero Member
  • *****
  • Posts: 794
Re: Buffett/Berkshire - general news
« Reply #1877 on: September 16, 2020, 10:03:35 AM »
Personally I think its crazy the amount of focus being given to this when you look at the size of the investment vs Berkshire's total capital...

Additionally, whats wrong with doing this? I do similar things with the capital I have at my disposal...granted, not a few hundred million but still, speculating on small amounts is perfectly fine. Heres a newsflash for folks...over the past decade, investments like SNOW have worked wonderfully, whereas a good many of the ones put on by Berkshire under the "old formula" and many value investors, have not. Are people averse to making money? I would wager a good amount that this trade makes BRK some money.

Well said.
I type on my phone and don't spend more than a few seconds typing my messages as I'm not trying to impress anyone on the board, it is more of just sharing my thoughts and what I'm doing and being part of discussing companies.
if it works it works. Yes, I'm very well are of process and outcome but the Todd and Ted doubled their investment on this.

Sometimes this board comes across as too rigid in thinking but there are some very sharp people on this board as well and the reason why I still check it.
I miss Ericopoly's posts. He had some great ones. I guess he isn't on much anymore. His BAC option posts were very good.

Gregmal

  • Hero Member
  • *****
  • Posts: 4556
Re: Buffett/Berkshire - general news
« Reply #1878 on: September 16, 2020, 10:10:37 AM »
I'm more inclined toward thinking we are somewhere in the 1999-2000 timeline with these tech IPOs.  What is it now with this pop, like 150x revenue?  It's working now but how many companies can trade at such insane valuations?  Are they all going to get 100% revenue growth a year?

There is often a misperception that you are either a participant in the bubble and bound for doom, or you sit on the sidelines and wait to get rich after it implodes. The truth is there is very much in between, and there are many ways to dance and enjoy the party without blowing yourself up. There is also, often, quite a bit of time spent waiting/doing nothing while the party goes on. Why waste that time? As a BRK shareholder, moves like this one and RH, make my happy. If they were doing this with billions....yea that would change the profile for me. But taking shots on high probability trades is a good thing. Simply putting the Berkshire name behind something, has historically shown to be a valuation booster. I'd gander that is part of the reason this IPO is so hot. Monetize that more often!

John Hjorth

  • Hero Member
  • *****
  • Posts: 3261
Re: Buffett/Berkshire - general news
« Reply #1879 on: September 16, 2020, 10:56:07 AM »
I like to read your stuff, Greg.

Interesting times. -Please keep your posts coming.
« Last Edit: September 16, 2020, 10:58:32 AM by John Hjorth »
”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