Author Topic: Mystery Berkshire Investment  (Read 40546 times)

kab60

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Re: Mystery Berkshire Investment
« Reply #70 on: February 17, 2021, 07:05:33 AM »
I like these moves. Not sure on Chevron, but oil was cheap in Q4. Things like Verizon, Kroger, BMS all trade around 10x earnings/free cash flow with low-mid digit expected growth. And all three are resilient mofos that shouldn't care too much about the broader economic environment. So it looks like a low-risk way of getting at least a 10 pct. return plus any growth and possible multiple re-rating as a cherry on top. I didn't look closely into Verizon before, but it doesn't look too shabby, and it doesn't seem like one pays too much for the possibility of 4/5G taking some share of home broadband from cable/fiber. I don't live in the states, but I made that shift some time ago as it was both cheaper and faster with mobile broadband, plus I can take it with me to our vacation home, so I don't need two connections.


RadMan24

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Re: Mystery Berkshire Investment
« Reply #71 on: February 17, 2021, 09:03:49 AM »
Not getting the hate on VZ. Seems like a good company at a great price given ZIRP. Going through a capex supercycle with 5G, but when built out is done, should begin to pick up market share from cable internet cos. Definitely slipped my radar and will be looking to pick up a tracking position.

Feeling meh on CVX though. Previous investments like XOM, PSX, and Flying J I would say were an overall mixed bag (but maybe... this time it's different? Like airlines? :P)

Flying J has been a great investment. I think Buffett wanted to buy PSX, but got rebuffed, was a good investment. XOM was more of a cash holding idea, according to Munger, and it ended up not working due to the drop in oil.

mattee2264

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Re: Mystery Berkshire Investment
« Reply #72 on: February 17, 2021, 09:40:15 AM »

 Chevron seems like a pretty good investment. Short cycle projects so should be a nice cash cow and make hay as oil enjoys a final hurrah before green energy starts to take too much share.

John Hjorth

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Re: Mystery Berkshire Investment
« Reply #73 on: February 17, 2021, 12:35:37 PM »
Well, I don’t think these purchases are big mistakes, like I did with his airline purchases and selling of WFC. I just think BRK will return more to me as an investor than VZ or CVX could possibly. That is why I have 80% of my portfolio in BRKB.

Mike,

I like your take on this. To me, it's that plain simple. Based on the VZ and CVX additions, I hope to see some serious & material addition to BRK soon!
”In the race of excellence … there is no finish line.”
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boilermaker75

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Re: Mystery Berkshire Investment
« Reply #74 on: February 17, 2021, 04:36:27 PM »
Well, I don’t think these purchases are big mistakes, like I did with his airline purchases and selling of WFC. I just think BRK will return more to me as an investor than VZ or CVX could possibly. That is why I have 80% of my portfolio in BRKB.

Mike,

I like your take on this. To me, it's that plain simple. Based on the VZ and CVX additions, I hope to see some serious & material addition to BRK soon!

Thanks John. I think VZ and CVX will be ok, but I'd be a real happy camper if BRK bought back $15 billion, or more, in the fourth quarter.

Xerxes

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Re: Mystery Berkshire Investment
« Reply #75 on: February 19, 2021, 05:51:02 PM »
This a great point of view on BRK 13F.

https://www.cnbc.com/video/2021/02/19/josh-brown-why-berkshires-stock-moves-arent-relevant-to-investors-anymore.html

Personally, I feel that Buffet is doing what he likes best. Reading and investing all with pocket money, none of those moves says much to an outsider looking in, ... but every now and then, he goes back to work, rolls up his sleeves, and knocks it out of the park with an Apple giant-size bet ... but then reverts back to his side activity of medium-term trading.