Jump to content

redhots

Member
 View Profile  See their activity

  • Posts

    102

  • Joined

  • Last visited

 Content Type 

Posts posted by redhots

    Share Repurchases

    in Berkshire Hathaway

    Posted

    https://finance.yahoo.com/news/berkshire-hathaway-amends-share-repurchase-220400739.html

     

    The Board of Directors of Berkshire Hathaway Inc. has today authorized an amendment to Berkshire’s share repurchase program. The earlier share repurchase program provided that the price paid for repurchases would not exceed a 20% premium over the then-current book value of such shares. Under the amendment adopted by the Board of Directors, share repurchases can be made at any time that both Warren Buffett, Berkshire’s Chairman and CEO, and Charlie Munger, a Berkshire Vice Chairman, believe that the repurchase price is below Berkshire’s intrinsic value, conservatively determined.

     

    The current policy whereby share repurchases will not be made if they would reduce the value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bills holdings below $20 billion will continue. Berkshire will not initiate any share repurchases under the amended program until it publicly releases its second quarter earnings, currently scheduled after the close of the markets on Friday, August 3, 2018.

    Daily Journal Annual Meeting Questions

    in Berkshire Hathaway

    Posted

    You can assume its BYD by comparing the fair values in the 2015 and 2016 10-K and see that they closely align with BYD share price. 

     

    From the latest 10-K

    The fair value of the foreign marketable security held in Hong Kong Dollar was $55,000,000 with an adjusted cost of $14,710,000 and $32,814,000 with an adjusted cost of $9,697,000 as of September 30, 2017 and 2016, respectively.

     

    So we know they spent $5,013,000 since the cost went up.    If you look at end price and it is in fact BYD then they bought 929,224 shares at $5.39 a share.  It looks like purchased those around Dec 2016/Jan 2017.  (just looking at closing prices).    So an increase of 19%.    BYD is 25% of their portfolio as of 9/30/2017.

    4 stock porfolio

    in General Discussion

    Posted

    I don't know.  I am thinking great economics that the business can maintain for a long time and then just sit on my ass. 

     

    Munger was quoted as saying.

    If you live in a small town and if you own a good car dealership , McDonald franchise , best apartment building in town , highest quality office building in town. You are done!

    Debt Primer & Tools

    in General Discussion

    Posted

    What is the best way to find a snapshot about company's debt.  Is it selling for par?  Is it investment-grade?  What are the terms? 

     

    What are the best (inexpensive) subscription tools to research debt?   

     

    Is it easy for an individual investor to buy corporate debt?  Distressed debt?

     

    Any books/primers that are a must read?

     

     

     

     

    Ready To Be A Landlord

    in General Discussion

    Posted

    This in Seattle.  My goal was to make money on the monthly income assuming I could keep it rented out and have some money left over for maintenance and vacancy.  I want to keep it long term and I hope for appreciation. 

     

    The first house I bought was $280,000.  Interest rate is 4.25%.  (going rates were ~3.9%...)  The HomePath properties could be bought with only 10% down so I borrowed 90% and since they are coming from Fannie there isn't any mortgage insurance.    I pay ~$1500 a month for  principal, interest, taxes, insurance (PITI) and I started renting it for $1950.  (now $2100).

     

    When I first looked at rentals the monthly couldn't cover the PITI.  I don't want to put additional money in on a monthly basis.

     

    The house was in pretty good shape.  I did some cosmetic work myself and hired people to help get it rented.

    Ready To Be A Landlord

    in General Discussion

    Posted

    In 2012, Buffett talked about buying single family homes.  That resonated with me.  I looked at real estate 10 years ago and couldn't make the numbers work.  So I found a Realtor and looked around.  Real estate was down, rates were low, and the numbers worked.  So I bought a couple of rental properties that are within a 1/2 hour of my home  (Fannie's HomePath properties that were in foreclosure).    I liked the idea of borrowing at low rates for 30 years.

    Working with Canadian securities and currency for a US investor

    in General Discussion

    Posted

    Hello, everyone. I haven't been very prolific in posting, but I hope to ask for some gratuitous advice nonetheless.

     

    I will be participating in a private placement for a Canadian security on an exchange (CSX) that my brokerage, Fidelity, doesn't work with. I've run into two interesting issues:

     

    1) Fidelity will not hold CSX securities and certainly not restricted stocks (this placement will issue restricted shares). Is there any better method for holding this stock rather than holding stock certificates in my home file cabinet?

     

    2) I will have to wire money for the placement and convert from $US to $CAD. If I wire through Fidelity and have them convert, I'm noticing that the exchange rate for fidelity is about 3% below the official spot rate (they said $1 CAD = 1.067 Canadian today). That means that Fidelity takes about 3% on the currency spread. My bank, Bank of America, takes about 4% on the currency spread. Is there any way to send money from the US to a Canadian bank with a currency conversion without essentially paying a 3% fee? Any better ideas?

     

    I greatly appreciate any advice.

    Thanks,

    Mike

     

    Great questions!  I am interested too!

×
×
  • Create New...