Semper Augustus letter

[longinvestor]

http://www.loschmanagement.com/content/operating-earnings


Here's another nice one on BRK. While not as deep an analysis, it is the first one (what I've seen) that breaks out how capital is being allocated into the 5 buckets (priorities mentioned in the chairman's letter). Roughly $200 B into wholly owned businesses/PPE versus $22 B into equities from 2006-16.

[John Hjorth]

http://www.loschmanagement.com/content/operating-earnings


Here's another nice one on BRK. While not as deep an analysis, it is the first one (what I've seen) that breaks out how capital is being allocated into the 5 buckets (priorities mentioned in the chairman's letter). Roughly $200 B into wholly owned businesses/PPE versus $22 B into equities from 2006-16.

longinvestor,

Also a very good read - this with a new angle on things [straight cash flow vs. allocation of capital]. Thanks for sharing.

[jberkshire01]

Chris Bloomstran's follow-up interview with Kate Welling: http://www.valueinvestingworld.com/2016/04/kate-welling-talks-with-chris-bloomstran.html

[John Hjorth]

Today I received an email from Chad, containing the SA client letter. Basicly, the client letter was contained as two attachments to the email, consisting of a cover letter [in pdf] and the document [in pdf] linked to by jberkshire01 above.


Attached is the cover letter, as promised [nothing material news in that].

[stahleyp]

Did you guys see his returns?

Since inception net of fees is 5.4% vs 5.1% with the S&P 500. take taxes into consideration and I bet the index wins by a decent margin.

[John Hjorth]

Did you guys see his returns?

Since inception net of fees is 5.4% vs 5.1% with the S&P 500. take taxes into consideration and I bet the index wins by a decent margin.

Paul,

Yes, I [for one] noticed that. [However I'm not sure I understand your comments about the S&P 500 - as I understand things, S&P 500 is measured before tax].

Earlier [after my first post in this topic] I looked up the quaterly holdings for SA on Edgar, and what stoke my mind [from a quick view on it] was that XOM was the second biggest position, next to BRK, in the fund. I would really like to read more about that SA thesis [based on value investing [pricing power etc.], but I'm not entitled to, as a non client.

However, that does not change my mind on or my perception of the SA BRK analysis.

[ZenaidaMacroura]

Did you guys see his returns?

Since inception net of fees is 5.4% vs 5.1% with the S&P 500. take taxes into consideration and I bet the index wins by a decent margin.

Paul,

Yes, I [for one] noticed that. [However I'm not sure I understand your comments about the S&P 500 - as I understand things, S&P 500 is measured before tax].

Earlier [after my first post in this topic] I looked up the quaterly holdings for SA on Edgar, and what stoke my mind [from a quick view on it] was that XOM was the second biggest position, next to BRK, in the fund. I would really like to read more about that SA thesis [based on value investing [pricing power etc.], but I'm not entitled to, as a non client.

However, that does not change my mind on or my perception of the SA BRK analysis.

Is XOM a relatively recent pickup?

[John Hjorth]

Did you guys see his returns?

Since inception net of fees is 5.4% vs 5.1% with the S&P 500. take taxes into consideration and I bet the index wins by a decent margin.

Paul,

Yes, I [for one] noticed that. [However I'm not sure I understand your comments about the S&P 500 - as I understand things, S&P 500 is measured before tax].

Earlier [after my first post in this topic] I looked up the quaterly holdings for SA on Edgar, and what stoke my mind [from a quick view on it] was that XOM was the second biggest position, next to BRK, in the fund. I would really like to read more about that SA thesis [based on value investing [pricing power etc.], but I'm not entitled to, as a non client.

However, that does not change my mind on or my perception of the SA BRK analysis.

Is XOM a relatively recent pickup?

ZenaidaMacroura,

I haven't checked it out, so I don't know.

Disclosure : I have a small position myself in XOM [less than 2% for myself, less than 0,5% on overall level], and I'm [personally] up about 9% [ex. dividends, in my own obscure functional currency [DKK], related closely to EUR] since I bought it, about the same time that BRK invested in XOM.

[doughishere]

http://www.loschmanagement.com/content/operating-earnings


Here's another nice one on BRK. While not as deep an analysis, it is the first one (what I've seen) that breaks out how capital is being allocated into the 5 buckets (priorities mentioned in the chairman's letter). Roughly $200 B into wholly owned businesses/PPE versus $22 B into equities from 2006-16.

That was really good.

[stahleyp]

Did you guys see his returns?

Since inception net of fees is 5.4% vs 5.1% with the S&P 500. take taxes into consideration and I bet the index wins by a decent margin.

Paul,

Yes, I [for one] noticed that. [However I'm not sure I understand your comments about the S&P 500 - as I understand things, S&P 500 is measured before tax].

Hey John,

The S&P 500 is super tax efficient so the returns are very close to what you'd have since turnover is so low. Granted, once you eventually sell it you'll owe taxes but on year to year basis, not much is going on besides dividends.