kiwing100

He looks for a minimum 10%pre tax. Taxes on prefered stocks are lower, so he might accept a little less.the warrants are the return above threshold. FYI, here is what Buffett had to say about the preferreds in the past (in BRK AGM's) 1) on the US Airways convertible preferred "By the terms of our preferred, in just a little over two years, we are due to be paid back our principal amount. It was really a loan in equity form, with a kick — possible kicker on the upside because of the conversion privilege on the preferred." "we have the convertible preferreds of Champion, of US Airways, and of Salomon. And those are three industries — I don’t think we’ve ever owned an airline stock, common stock. I don’t think we’ve ever owned a paper company common stock. And we’ve only had a very limited amount of investment in the investment banking businesses. Those are industries that we don’t feel that we’ve got the same kind of long-term economic advantage that we have in something like a Coke or a Gillette. So those are not natural places for us to be common shareholders. And the issuance of that exchangeable debt reflected that view." 2) on the Goldman Sachs preferred So every day that goes by that Goldman does not call our preferred is money in the bank. It’s been pointed out that our preferred is paying us $15 a second. So as we sit here, tick —(laughter) — tick, tick, tick, that’s $15 every tick. (Applause) I don’t want those ticks to go away. (Laughs) I just love them. They go on at night when I sleep — (laughter) — on weekends. And frankly, Goldman would love to get rid of that preferred. I mean, they only agreed to sell us that preferred because it was sort of at the height of the crisis. Now, there were different risk profiles, obviously, in investing. And the truth is, I don’t know whether Harley-Davidson equity is worth $33 or $20 or $45. I just have no view on that. You know, I kind of like a business where your customers tattoo your name on their chest or something. But — (laughter) — figuring out the economic value of that, you know. I’m not sure even going out and questioning those guys I’d learn much from them. (Laughter) But I do know, or I thought I knew, and I think I was right, that, A) Harley-Davidson was not going out of business. And that, B) 15 percent was going to look pretty damned attractive. And the truth is, we could probably sell those bonds, I don’t know, probably at 135 or something like that. So we could have a very substantial capital gain, a lot of income. I knew enough to lend them money; I didn’t know enough to buy the equity. And that’s frequently the case. And, you know, we love buying equities, but we love buying the Goldman preferred at 10 percent. Now, let’s say Goldman, instead of offering me the 10 percent preferred and warrants had said, “You can have a 12 percent preferred, non-callable,” I might have taken that one instead. I mean, the callable — so there’s a tradeoff involved in all these securities. And obviously, if I think I can make very good money, as we did on Harley-Davidson, with a very simple decision, just a question of, “Are they going to go broke or not?” as opposed to a tougher decision, “Is the motorcycle market going to get diminished significantly? And, you know, are the margins going to get squeezed somewhat?” And all of that. I’ll go with a simple decision.

The OXY financing commitment is essentially a credit decision - i.e 1) will they default? 2) if they default, how much will BRK recover? For the credit risk, BRK is receiving a 5.55% spread over UST 10yr (8% coupon vs 2.45% UST 10yr), as well as a $50mn financing commitment fee. The warrants are icing on the cake.

ICYMI, Warren Buffett, Charlie Munger & Bill Gates on CNBC, post AGM

ICYMI, full recording of BRK AGM:

For those not attending Omaha but want to watch the annual meeting ... FYI - https://finance.yahoo.com/brklivestream/

FYI, for those attending the meeting in Omaha https://www.facebook.com/groups/405832560147904/?ref=gs&fref=gs&dti=754138784714366&hc_location=group

Video link on CNBC site - https://www.cnbc.com/video/2019/03/28/watch-warren-buffetts-full-interview-with-cnbcs-becky-quick.html

https://www.cnbc.com/video/2019/02/15/investing-legend-charlie-munger-on-investing-the-buyback-debate-and-much-more.html

Transcript which might save you time - https://tim.blog/2018/09/27/the-tim-ferriss-show-transcripts-howard-marks

2 hour podcast - discussion with Howard Marks in August 2018 on his book tour. https://content.production.cdn.art19.com/episodes/5016cc2c-3e67-449f-8b53-f06d488e5baf/b23d9baccb86ed38bc3c58db86541c364228d54c0f9e0d022c71b1c8c289b18af77beba7712d912d9eb6aba524b967d939ff9088b6cbfe08f76d772eca71e4e1/TheTimFerrissShow_Howard%20Marks%20Edit%201.mp3

FYI https://www.oaktreecapital.com/docs/default-source/memos/the-seven-worst-words-in-the-world.pdf

For investors in China, something to watch - https://www.imdb.com/title/tt7215388/?ref_=nv_sr_1 Need to make sure of your due diligence.

FYI, link to video - https://www.youtube.com/watch?v=SF-PW7C3J88

Racemize, Many thanks to you for sharing this fabulous collection.

ICYMI, full transcript of interview https://www.cnbc.com/2018/05/07/full-transcript-billionaire-investor-warren-buffett-speaks-with-cnbcs-becky-quick-on-squawk-box-today.html

FYI, CNBC MEDIA ALERT: CNBC'S BECKY QUICK WILL SPEAK WITH BILLIONAIRE INVESTOR WARREN BUFFETT ON CNBC’S “SQUAWK BOX” MONDAY, MAY 7TH 6AM-9AM ET https://www.cnbc.com/2018/04/29/cnbc-media-alert-cnbcs-becky-quick-will-speak-with-billionaire-investor-warren-buffett-on-cnbcs-squawk-box-monday-may-7th-6am-9am-et.html

FYI, ICYMI 14 min video https://www.cnbc.com/2018/05/04/warren-buffett-obsessing-over-iphone-x-sales-in-the-near-term-totally-misses-the-point-on-apples-stock.html

Dynamic, Many thanks to you for sharing this.

FYI, http://www.tilsonfunds.com/BRK.pdf

Thank you Liberty. "I had a class last week with 11 schools, 220 students." - wondering if anyone seen a transcript of this?

The discussion of the business units was not included in the Chairman's letter as in prior years. The discussion of the business units was covered in another part of the annual report - that was referred to in the Chairman's letter. "For many years, this letter has described the activities of Berkshire’s many other businesses. That discussion has become both repetitious and partially duplicative of information regularly included in the 10-K that follows the letter. Consequently, this year I will give you a simple summary of our dozens of non-insurance businesses. Additional details can be found on pages K-5 – K-22 and pages K-40 – K-50."

FYI WEB on CNBC Monday 26 Feb 2018 6:00AM to 9:00AM ET https://www.facebook.com/SquawkCNBC/photos/a.518355554845918.133524.514795918535215/2040417319306393/?type=3&theater

ICYMI https://www.oaktreecapital.com/docs/default-source/memos/latest-thinking.pdf

Abel's expertise and experience is managing existing non insurance operations. Potentially using the cash generated from those operations to invest capital in future to make acquisitions of controlled businesses (particularly large infrastructure type businesses). Most likely he will be aided by Ted and Todd in capital allocation. Jain's area of expertise is capital raising to further finance those acquisitions in the form of generating low cost float and managing and pricing the underwriting risk, and insurance business.

* BERKSHIRE HATHAWAY INC - GREGORY E. ABEL AND AJIT JAIN WERE THEN ELECTED TO SERVE AS DIRECTORS TO FILL RESULTING VACANCIES ON BOARD OF DIRECTORS * BERKSHIRE HATHAWAY - ON JAN 9, BOARD VOTED TO INCREASE NUMBER OF DIRECTORS COMPRISING ENTIRE BOARD OF DIRECTORS FROM TWELVE TO FOURTEEN​ * BERKSHIRE HATHAWAY INC - BUFFETT AND CHARLES T. MUNGER, VICE CHAIRMAN OF BERKSHIRE HATHAWAY WILL CONTINUE IN THEIR EXISTING POSITIONS​ * BERKSHIRE HATHAWAY INC - BUFFETT APPOINTED ABEL TO BE BERKSHIRE VICE CHAIRMAN - NON-INSURANCE BUSINESS OPERATIONS * PRESS RELEASE - BERKSHIRE HATHAWAY INC. NEWS RELEASE * BERKSHIRE HATHAWAY INC - BUFFETT APPOINTED JAIN TO BE BERKSHIRE HATHAWAY‘S VICE CHAIRMAN - INSURANCE OPERATIONS