sleepydragon

Well, The press release says they may or may not buyback, depending on their view of the intrinsic value. I am hoping no buyback :) cuz i want to buy more

Earning is good, but nothing like tender or buyback like CNBC predicted

Is it possible for a company to remove itself from S&p 500? Say, Berkshire do a reverse split of B shares or merge B shares back to A shares,, thus perhaps disqualify itself. Then Berkshire structures a deal to buy back all the shares that index tracking funds are holding.

I have a friend who used to work for ray dalio. He is extremely driven and hard working. He used to be fat and when he talks, clients doesn’t respect him much. After failing to lose weights, he did a surgery to cut half of his stomach. He is also a very nice, solid, family guy. But he is kinda weird: He is a big fan of Chairman Mao and Chinese communism, and the culture in bridgewater is biazard (it’s culture revolution everyday there — everyone recite every sentence in his “principles “

I bought BRKB 3 times this month. Good timing! Lol

Corporate profits are currently at 10% of GDP. The long term average is around 6%: http://fortune.com/2017/12/07/corporate-earnings-profit-boom-end/ In 1998 (or 1999) annual meeting, Buffett has said 20% of GDP is definitely Not possible over the longer term (he was referring to the high PE and forward profits at the market at that time). I guess we will be fine if GDP gets to 4%? But all these talks about trade wars is not helping..

If It's not asking too much, what other stalwarts do you have? Throughout this year I've intermitently been on brk, google and davita, accordingly to the price fluctuations, but I don't see them the same way I see brk... Thank you. Ps: added brk today. 18% of the portfolio now. Rolling, my favourite group right now are the large US banks (surprise, surprise). For the past couple of years I have viewed them as turnaround plays. However, I now view the big US banks as more like stalwarts. As an example, you can buy BAC today at $29. It will earn about $2.55 in 2018 and close to $2.90 in 2019. 100% of earnings will be returned to investors for the next few years (2% dividend and 8% stock buybacks). It will grow top line by about 4% and bottom line by about 15% for the next few years. Under Trump US GDP growth may actually accelerate. The Fed will continue hiking rates. Mobile banking is dramatically lowering costs. Operating leverage continues quarter after quarter. Deregulation has legs. Do I expect 30% per year from my big US bank stocks? No. I will be very happy with 15-20% returns. Like shooting fish in a barrel. :-) PS: I do think at some point in the next couple of years investors are going to fall back in love with bank stocks where they will bid up the PE multiple. When I see This happen I will be happy to sell and wait in the weeds for the next fat pitch. 15% means doubling every five years. I am ok with that :) The banks are going to earn 15% roe in a few years, certainly this case for WFC.

alwaysdrawing, can you share your portfolio so we can see how much better it is?

Why does people think AXP and KO and WFC are currently bad investments? It’s laughable. I think they are great investments at current price. Are you sure that you know these companies well enough, better than Buffett? How long have you been following these companies ? Have you even read the 10K?

Anyone know why its website is done? Will it ever get back up? Maybe it’s not generating the 15% ROE hurdle rate required by Buffett? :)

Maybe a real estate attorney? :)

wow, I wonder if Buffett or Bezo was reading this

How are you coming up with $45B earnings for BRK? He's taking last year's GAAP which includes the change in the DTL which is one-time in nature, which I think is what you are getting at. ($21 billion of the $45 billion for 2017 was negative tax expense) To use a reasonable neutral third party, JP Morgan estimates ~$28 billion for 2019 ($5B investment income, $2B of underwriting = $7 Billion insureance + $29 billion operating+$4 billion investment gains +- some other crap for $34 billion of pre-tax income less $6.6 b of taxes = $28 billion of earnings), with upside in the event of deployment of excess capital. I think Berkshire is safe and relatively cheap and it is my largest position (and my family's). $45 billion of earnings ain't happening (unless the stock portfolio zooms up, which you wouldn't capitalize those earnings) EDIT: What I mean is that $45 billion of operating earnings ain't happening any time soon. Because of the accounting changes made recently you could get there with stock value change, but that's not the same thing. Overall, I think longinvestor just took 2017 GAAP NI and did not mean it as a representation of anything more than that, 2017 NI. Look through earnings are ~$12b—so plus op earnings—let's call it around ~$35b total. Berkshire is trading around 13x earnings which seems like a fair deal to me. If excluding the 100b cash, the pe becomes around 11ish I think

How are you coming up with $45B earnings for BRK? Brk has 180b of stock portfolio, I think? Maybe the earning of these companies as % of brk ownership?

At my age, my hair is precious. My wife says she will divorce me if I lose all my hair and my teeth. So I would rather not to buy stocks on margin at anytime :)

Speaking of flax seed, I gave my chicken that stuff. Lol According to my wife, flax seed has long chain omega 3 which is very hard for human to digest. But chicken can digest it and turn them into short chain omega 3 in their eggs which is better for human

I am reading “a piece of action”

https://www.cnbc.com/2018/05/30/warren-buffett-reportedly-offered-uber-3-billion-investment-but-talks-crumbled.html Interesting that he confirms the talks, now if he doesn't confirm or comment on other roamers he is basically denying them Cuz Uber is a big customer of Geico. And I am sure Web has some insights on Uber through Geico.

What if guy who sell you the lease has insider knowledge and know the lease will go bad in a few years? Maybe negotiate a “put” so u can put the lease back to him, but then there is counter party risk. Also you can’t diversify (it will work if you have 10 similar deals like this)

Watch porn. Just kidding! :) In the morning, I start with social media ( Facebook) :p

Why Rocket financial's registration want my job title and employer info? That's strange! And

I have switched to yahoo finance and later Morningstar. I like Morningstar a lot, let me create views and see various ratios in one table. The news are also better.

I was trying to buy the stock today but it went up too fast!!

If u want to really learn programming, you shall learn LISP. It requires serious logics and brain powers.

I am learning wood works, first building a raised bed for planting. Ultimately my wife hope I can become skillful enough to build a chicken coop. My wife is more excited than I.