Author Topic: Next Berkshire acquisition speculation  (Read 13289 times)

gfp

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Next Berkshire acquisition speculation
« on: August 09, 2019, 06:23:13 AM »
Not sure if there is already a thread discussing what the next material BRK acquisition will be (not including realtor offices and tiny crane operators here, just Billion dollar plus deals).

I'll posit a few whole company buyouts that Warren might consider -

CarMax, KMX
Philips 66, PSX
Home Depot, HD - although it is quite possible that he is completely done with retail
Coca-Cola, KO
DaVita, DVA - although he would probably rather steer clear of the healthcare industry entirely
Honeywell, HON
Boeing, BA
General Electric, GE - in whole or in parts
Mars, Inc - not likely that they would sell
Progressive, PGR - would this deal even be allowed by regulators?
Reyes Holdings - private company
Costco, COST - seriously doubt it at this price and above

Anyone know of some really large European private companies that would fit the bill?

Interested to hear other idea speculation.  Helps to pass the time between acquisitions - they are usually not the ones we speculate


John Hjorth

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Re: Next Berkshire acquisition speculation
« Reply #1 on: August 09, 2019, 06:52:32 AM »
Great idea with a recapitalization here, gfp,

CAT & DE - not now, but in the next severe downturn. I think CAT has done really well since the GFC. Mr. Gates owns CAT right now, if I remember correctly.

I'm not sure Mr. Buffett likes their financing arms though. Mr. Buffett could likely get better financing terms under the Berkshire umbrella for both compared to them as standalones, or provide group internal financing.

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Dynamic

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Re: Next Berkshire acquisition speculation
« Reply #2 on: August 09, 2019, 07:01:24 AM »
I suspect it could be something where there's a new insight and something has significantly and materially changed. For example BNSF railroad - things had dramatically changed and permitted returns and tax treatment made it a great investment but it took others a while to recognize the value.

Castanza

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Re: Next Berkshire acquisition speculation
« Reply #3 on: August 09, 2019, 07:35:04 AM »
I'd like to see something like Waste Management. It certainly is expensive right now, but it would branch them out a bit more.

bizaro86

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Re: Next Berkshire acquisition speculation
« Reply #4 on: August 09, 2019, 08:13:01 AM »
One of the airlines seems plausible.

I'd prefer they buy Aercap, but they don't seem interested in airplane leasing.

On that I'd love to see in the next downturn would be DIS. At $250B market cap it would be big enough to move the needle, and the parks/hotels/cruise ships have plenty of opportunity to deploy capital at attractive returns

longinvestor

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Re: Next Berkshire acquisition speculation
« Reply #5 on: August 09, 2019, 08:36:26 AM »
AXP; especially if there’s a swoon again similar to the Salad Oil scandal.

longinvestor

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Re: Next Berkshire acquisition speculation
« Reply #6 on: August 09, 2019, 08:39:53 AM »
A large insurance biz.

Or big chunks of the insurance book from distressed companies. Just like AIG. There’re shoes likely to drop in the coming decade.

gfp

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Re: Next Berkshire acquisition speculation
« Reply #7 on: August 09, 2019, 09:25:14 AM »
AXP; especially if there’s a swoon again similar to the Salad Oil scandal.

I suppose if they were willing to give up their Bank charter.  And if they weren't a bank, it would free up Berkshire to acquire Delta without worrying about the Fed fretting over a very material commercial relationship...

Charlie

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Re: Next Berkshire acquisition speculation
« Reply #8 on: August 09, 2019, 10:05:12 AM »
- Aldi
- Lidl
- Lindt & Sprüngli
- Ferrero
- Engel & Völkers
- Hannover Rück
- Ikea

 The strong US dollar would be a nice tailwind for European acquisitions.  :)
« Last Edit: August 09, 2019, 10:50:54 AM by Charlie »

rogermunibond

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Re: Next Berkshire acquisition speculation
« Reply #9 on: August 09, 2019, 10:17:11 AM »
I'll take a stab here.  Howmet Aerospace by Precision Cast when it gets spun out of Arconic.