Author Topic: Catalyst for BRK from Book Value to New Metric  (Read 5412 times)

πv

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Re: Catalyst for BRK from Book Value to New Metric
« Reply #20 on: March 09, 2020, 05:16:46 PM »
Agreed, he could lose money on OXY pref if this rate of destruction continues in O&G. I donít think he will, but itís still preferred equity, not senior secured (of course itís possible to lose money in senior debt too, but you all get my point).

I don't think he would let that happen.  All it takes is a "small" loan to keep them afloat until the O&G recovers.  No debt expiring in 2020 so they have a little time.


Viking

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Re: Catalyst for BRK from Book Value to New Metric
« Reply #21 on: March 09, 2020, 05:33:22 PM »
What did Buffett buy in the Financial Crisis? Infrastructure: a railroad. Now only if something like MidAmerican was available for cheap...

longlake95

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Re: Catalyst for BRK from Book Value to New Metric
« Reply #22 on: March 09, 2020, 05:34:24 PM »
It is, it's called KMI...

thepupil

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Re: Catalyst for BRK from Book Value to New Metric
« Reply #23 on: March 09, 2020, 05:40:23 PM »
I don't either, I'm just saying it isn't "risk free". he could also move up capital structure and buy some long duration oxy notes at 60 cents right now, a cool 40 points down since issuance just a few months ago and 30 from friday

The company's 4.400% notes that mature in August of 2049 slid to 63 cents on the dollar from 90.14 cents in late trade Friday, according to MarketAxess data. The bonds were 289 basis points wider on the day for a yield spread of 665 basis points over comparable Treasurys.

https://www.marketwatch.com/story/occidental-petroleum-bonds-collapse-as-crude-price-decline-raises-concerns-it-may-need-to-cut-dividend-2020-03-09

longinvestor

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Re: Catalyst for BRK from Book Value to New Metric
« Reply #24 on: March 09, 2020, 05:47:38 PM »
What did Buffett buy in the Financial Crisis? Infrastructure: a railroad. Now only if something like MidAmerican was available for cheap...

No secret that they are looking in the Utility world. Eyes on transmission assets. Something like Oncor, somewhere midwest to west?