Author Topic: Mystery Berkshire Investment  (Read 42480 times)

Dooba

  • Newbie
  • *
  • Posts: 11
  • Lawyer, part-time value investor
Re: Mystery Berkshire Investment
« Reply #20 on: February 11, 2021, 06:01:37 AM »
General Electric is far more possible than Boeing, IMHO.

Larry Culp cut his teeth at Danaher and he is well known name.

Its aviation exposure is an actual positive with the recovery in Aftermarket and 737 MAX pulling its weight on production side. Think about it. The bulk of commercial aircraft flying out there either have engines from GE, Pratt & Whitney, Rolls-Royce or Safran. With the first two + Safran dominating the narrow-body market.

Its health care is a positive as well. The big question mark were on its Power division (they wrote off the bad part of Alstom) and GE Capital, the latter is being dismantled completely except for financing that is needed to supports its industrial operations. Its renewables (which i dont know much about) can only be a positive.

In 2012, GE Capital was 31% of revenues now it is less than 10%.
Aviation was 13% of sales in 2012 and now it is 34%. Long term debt has gone down from $220 billion to ~$60 billion.

I think General Electric will rip and will ride the opening economy and rotation to value trade.

Interesting thesis. I haven't been paying much attention to GE because I thought its management was crap, but you've got me interested in taking another look.
“I have never seen a management consultant’s report in my long life that didn’t end with the following paragraph: 'What this situation really needs is more management consulting.' Never once. I always turn to the last page."-Charlie Munger


Investmentacct

  • Full Member
  • ***
  • Posts: 202
Re: Mystery Berkshire Investment
« Reply #21 on: February 11, 2021, 10:13:57 AM »
BTC? 

OK, JK,  I'd guess Google as well.

BTC quite  possible. As 6 hour download of a BTC node replaces each banking function through out world. It may not be longer before Oracle of Omaha and venerated Charlie Munger change their mind on it.  PS: Interesting one from today is BNY Mellon news. All old players on street  joins; ultimately Oracle joins. This may be only start up investment where general public had open market ledger and cap table (fully visible) access for 12 years or so before Traditional finance make their mind about it. As WEB says: "If history is guide to riches ; librarians would be richest in the world." Digital Scarcity is the trail on which World embarks. World abundant with Central bank currencies;  a new trail leading to Digital Scarcity has begun.
« Last Edit: February 11, 2021, 10:26:20 AM by Investmentacct »

kab60

  • Hero Member
  • *****
  • Posts: 1492
Re: Mystery Berkshire Investment
« Reply #22 on: February 11, 2021, 10:32:19 AM »
GE makes a lot of sense, if he is comfortable that there are no hidden nukes. Energy, healthcare, aviation are good to great businesses with a lot of staying power. It would also be a win-win since the backing of Berkshire would be a big vote of confidence and lower GE's cost of capital. The possible dealbreaker is a rotten culture ala WFC and getting comfortable Culp can change that which might be too big a leap of faith. But between BHE and Castparts he should be able to get som insights.

I don't see him entering the military complex through Boeing, has he ever invested in something with a defence component?

LC

  • Hero Member
  • *****
  • Posts: 5588
Re: Mystery Berkshire Investment
« Reply #23 on: February 11, 2021, 10:41:35 AM »
BTC? 

OK, JK,  I'd guess Google as well.

BTC quite  possible. As 6 hour download of a BTC node replaces each banking function through out world. It may not be longer before Oracle of Omaha and venerated Charlie Munger change their mind on it.  PS: Interesting one from today is BNY Mellon news. All old players on street  joins; ultimately Oracle joins. This may be only start up investment where general public had open market ledger and cap table (fully visible) access for 12 years or so before Traditional finance make their mind about it. As WEB says: "If history is guide to riches ; librarians would be richest in the world." Digital Scarcity is the trail on which World embarks. World abundant with Central bank currencies;  a new trail leading to Digital Scarcity has begun.

Every banking function?

How does BTC assess credit risk, market risk, IRR, etc? How does BTC perform collections and fraud functions? How does BTC perform hedging? Risk appetite assessments? I am not well versed in Bitcoin or block chains but I have not seen anything related to these functions discussed in conjunction with Bitcoin.
"Lethargy bordering on sloth remains the cornerstone of our investment style."

MarioP

  • Jr. Member
  • **
  • Posts: 68
Re: Mystery Berkshire Investment
« Reply #24 on: February 11, 2021, 11:05:25 AM »
GE makes a lot of sense, if he is comfortable that there are no hidden nukes. Energy, healthcare, aviation are good to great businesses with a lot of staying power. It would also be a win-win since the backing of Berkshire would be a big vote of confidence and lower GE's cost of capital. The possible dealbreaker is a rotten culture ala WFC and getting comfortable Culp can change that which might be too big a leap of faith. But between BHE and Castparts he should be able to get som insights.

I don't see him entering the military complex through Boeing, has he ever invested in something with a defence component?

In the ‘90 he invested in General Dynamics

ValueMaven

  • Hero Member
  • *****
  • Posts: 582
Re: Mystery Berkshire Investment
« Reply #25 on: February 11, 2021, 11:23:13 AM »
Yes - but that was an arb play.  They were tendering for a lot of stock - and selling off many parts of the business.  It was more of a special situation then anything else...

Investmentacct

  • Full Member
  • ***
  • Posts: 202
Re: Mystery Berkshire Investment
« Reply #26 on: February 11, 2021, 11:36:11 AM »
BTC? 

OK, JK,  I'd guess Google as well.

BTC quite  possible. As 6 hour download of a BTC node replaces each banking function through out world. It may not be longer before Oracle of Omaha and venerated Charlie Munger change their mind on it.  PS: Interesting one from today is BNY Mellon news. All old players on street  joins; ultimately Oracle joins. This may be only start up investment where general public had open market ledger and cap table (fully visible) access for 12 years or so before Traditional finance make their mind about it. As WEB says: "If history is guide to riches ; librarians would be richest in the world." Digital Scarcity is the trail on which World embarks. World abundant with Central bank currencies;  a new trail leading to Digital Scarcity has begun.

Every banking function?

How does BTC assess credit risk, market risk, IRR, etc? How does BTC perform collections and fraud functions? How does BTC perform hedging? Risk appetite assessments? I am not well versed in Bitcoin or block chains but I have not seen anything related to these functions discussed in conjunction with Bitcoin.

Apologize for premature all banking functions comment; and pardon for my ignorance in world full of experts.


Bitcoin is zero trust (full verification every 10 minutes) - closed system designed for specific functions.
https://bitcoin.org/bitcoin.pdf



assess credit risk, market risk, IRR, etc? --> Traditional Banks may need to evolve to verify and transact BTC public ledger(Currently Fintechs(Square,PayPal) have started to transact in past couple of years) . Putting BTC on collateral function; will able to assess the credit risk. BTC is zero trust system.

How does BTC perform collections and fraud functions? --> It is zero trust system. What it entails is every transaction is verified for its entirety and keeps the records. In traditional banking functions; We send EDI files for data exchange between related parties. Distributed nodes keeps the full ledger available all time for anyone's who is user of system.

How does BTC perform hedging? Risk appetite assessments? --> Hedging function can not be replaced by BTC; but having BTC in your portfolio may hedge modern finance fallacies. Risk Appetite assessment. ( BTC is 365/24/7 system can be transacted all time with) so some of the Risk assessment relates to "information synchronicity"; BTC will make immaterial

Key difference is because of Bitcoin's digital scarcity "TIME" becomes material of IRR and any finance function (in -ve interest world; TIME doesn't carry any value and seem to make less of difference).


"Time is Money" .  "Do you love life? Then do not squander time; For that's the stuff life is made of." -- Benjamin Franklin

More experts in these area of Banking can chime in.

« Last Edit: February 11, 2021, 11:38:57 AM by Investmentacct »

kdk77

  • Newbie
  • *
  • Posts: 13
Re: Mystery Berkshire Investment
« Reply #27 on: February 11, 2021, 11:44:39 AM »
Could be MSFT

rb

  • Hero Member
  • *****
  • Posts: 4158
Re: Mystery Berkshire Investment
« Reply #28 on: February 11, 2021, 12:07:08 PM »
Could be MSFT
He's said before they won't buy MSFT because of Gates.

John Hjorth

  • Hero Member
  • *****
  • Posts: 3343
Re: Mystery Berkshire Investment
« Reply #29 on: February 11, 2021, 12:10:08 PM »
... and pardon for my ignorance in a world full of experts.

My late mother taught me in a very special [, & here, undisclosed] way never to steal. Opportunistic, I'm here making an exception.
”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