Author Topic: Buffett/Berkshire - general news  (Read 711588 times)

Spekulatius

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Re: Buffett/Berkshire - general news
« Reply #1880 on: September 16, 2020, 04:18:46 PM »
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!

Yes, they can definitely monetize the Berkshire brand. This looks like a win  and I think they can do even better participating in late round venture capital.

I also see the opportunity for them to do creative deals and use Berkshires size to their advantage. If a tech startup has a promising product that is useful for Berkshire’s operating subs, make a deal and give them a contract (and hence immediate validation) and take a stake in them at the same time.

Could be a win win and something other venture investors can’t do. In the end, this is a big enterprise that needs to evolve, or become a dinausaur...
Life is too short for cheap beer and wine.


mattee2264

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Re: Buffett/Berkshire - general news
« Reply #1881 on: September 17, 2020, 04:11:28 AM »

 Yeah it is good that Berkshire seems to be adapting. Warren has been whining for years about how cheap money and competition from PE has made it very difficult to find any good acquisitions that move the needle for Berkshire and over the last decade lack of exposure to Big Tech has hurt investment returns.
Todd and Ted are clearly very smart and tech savvy so if they are able to use Berkshire's deep pockets and reputation to get in on some of the better tech IPOS then why not especially if they are not risking a huge amount of money?

fareastwarriors

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Re: Buffett/Berkshire - general news
« Reply #1882 on: September 21, 2020, 08:46:06 AM »

Occidental to Pay Buffett Dividend in Cash, Signaling Confidence


 Shale explorer was making payments to billionaire in shares
 Debt-laden Occidental hit harder than many by 2020 oil crash

https://www.bloomberg.com/news/articles/2020-09-21/occidental-to-pay-buffett-dividend-in-cash-signaling-confidence

gfp

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Re: Buffett/Berkshire - general news
« Reply #1883 on: September 22, 2020, 09:21:11 AM »
Small acquisition for IMC Group (Iscar) -
https://www.ctemag.com/news/people-companies/imco-carbide-tool-joins-imc-group

Also Ted tendered 2 million of Berkshire's DVA shares into DVA's $88 tender offer last week. (and 200k shares of his personal DVA)

https://www.sec.gov/Archives/edgar/data/927066/000120919120051292/xslF345X03/doc4.xml

ValueMaven

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Re: Buffett/Berkshire - general news
« Reply #1884 on: September 22, 2020, 03:03:51 PM »
Interesting.  DaVita has been an interesting one for BERK.  I'm glad they didnt buy it...

ValueMaven

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Re: Buffett/Berkshire - general news
« Reply #1885 on: September 24, 2020, 05:05:42 AM »
Another preferred + warrant transaction for grandpa Warren

Berkshire plans to make a $600 million preferred-equity investment in Scripps to help finance the purchase of closely held ION, the people said. Berkshire will also get a warrant to purchase as many as 23.1 million Class A Scripps shares at $13 apiece. Scripps stock closed Wednesday at $10.47.

gfp

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Re: Buffett/Berkshire - general news
« Reply #1886 on: September 24, 2020, 06:43:14 AM »
Here are the basic terms.  Ted Weschler learning the family business-

 
• $600 millioninvestment from Berkshire Hathaway
‒ Dividend of 8% per year if paid in cash; 9% if deferred
• Berkshire Hathaway also to receive a warrant to purchase up to 23.1 million Scripps Class A shares. ‒ Exercise price of $13 per share
• The preferred stock will have no maturity date.
• Berkshire Hathaway will not receive any board seats and will have no other governance rights.
While the preferred stock is outstanding, Scripps cannot issue a dividend or repurchase shares.

*maybe they would be interested in purchasing a Miami TV station some day

rogermunibond

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Re: Buffett/Berkshire - general news
« Reply #1887 on: September 24, 2020, 07:18:36 AM »
Aren't the OTA broadcasters sitting on valuable spectrum that the FCC might be willing to allow them to lease out?  I'll admit I'm not up on the latest in UHF/VHF FCC plans though.

voyager

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Re: Buffett/Berkshire - general news
« Reply #1888 on: September 24, 2020, 08:53:56 AM »
Aren't the OTA broadcasters sitting on valuable spectrum that the FCC might be willing to allow them to lease out?  I'll admit I'm not up on the latest in UHF/VHF FCC plans though.

Spectrum is kind of a catch 22.  For broadcasters, you really need that spectrum to have good quality on your channels, so is more of a terminal value item rather than additional value.  If you want to do the math, you look up each broadcaster's license and then apply the going rate of gigahertz per thousand people from the most recent auction.  I used to work in the industry, so I have a decent understanding of it. 

The more important thing is OTT subscriber growth and OTT subscriber rates (currently less than half of what cable companies pay).  If that continues to grow, broadcasters will be in fine shape even with cord cutting.   

Xerxes

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Re: Buffett/Berkshire - general news
« Reply #1889 on: September 24, 2020, 08:03:35 PM »
I always find the "Schumpeter" column in The Economist fun to read.

https://www.economist.com/business/2020/09/26/what-warren-buffett-sees-in-japan-inc