RadMan24

Meryl Witmer, a Berkshire director who is also on the Barron's roundtable and renowned value stock picker, has in past put forth a thesis on Packaging Corporation of America, and at the time, was a top position of hers. You can read her thesis on Barron's if you dig it up.

Intel is high capex, and will be above historical capex in the future, but in prior times, the Intel strategy of fully depreciating its assets and then moving on to a new node would become difficult in a period of high inflation. TSMC uses its prior nodes for all sorts of chips and that is the strategy Intel is embarking on, which would help it retain earnings power and recoup its investment even during periods of moderate to high inflation. Of course, in order to get to that stage, Intel is at the mercy of current inflation trends, but longer term, the business model should be more adapt than it is today. Nevertheless, it ain't going to be easy navigating inflationary trends, interest rates, economic growth, etc. in a post covid-19 alpha world.

AFR https://www.afr.com/markets/equity-markets/fund-managers-target-unloved-tech-shares-20211203-p59el0 Mr Munger did not provide a stock pick, but did reiterate his support for Costco, the low-cost retailer, which he believes could rival Amazon in online shopping. “I think Costco will eventually be a huge internet player,” he said. “People trust it, they have enormous purchasing power to reduce prices, they’re into very efficient forms of distribution.” Costco’s ability to pass on rising costs to consumers would also insulate the business from sharply rising inflation, which in the US touched the highest level in three decades in October. “The best you can hope for is that the inflation will be slow,” he said. “It makes investment very difficult.”

Do you run a philanthropy foundation? Curious on what real world knowledge you have to make that statement. Moreover, again -- ensuring Berkshire's culture is there post-Warren is not important to you?

I believe those appointments are more to do with maintaining culture at Berkshire along with further diversity of thought. To say Sussie is ridiculous and poor choice is astonishing considering the fees directors receive on other boards that are habitual yes men.

Is it possible to remove the ads and set up a paypal tip jar virtually?? I'd also be down for that -- even if I shoot you $5 every couple of years

Sure, transportation might be a declining source of oil demand, but not petrochemicals.

Don’t forget* he has an opinion on everything and it’s very important that everyone hears about it. *edit (it’s late)

He's not doing any media event till the annual meeting. I presume he's saving any such thoughts for whatever shareholders want to ask him. Besides, we got a hunk of juice from his sidekick Charlie the other day, more than enough to fill the air till May!

Ya'll see this yesterday? https://www.wsj.com/articles/charlie-munger-renews-robinhood-criticism-likens-app-to-racetrack-betting-11614284939?mod=searchresults_pos3&page=1 “I hate this luring of people into engaging in speculative orgies,” Mr. Munger told The Wall Street Journal from his Los Angeles home. Robinhood “may call it investing, but that’s all bullshit.” He added, “It’s really just wild speculation, like casino gambling or racetrack betting. There’s a long history of destructive capitalism, these trading orgies whooped up by the people who profit from them.”

Yea, I don't see how any lawsuit is successful against him. 1.) He's a Legend. and 2.) This whole episode is just entertaining to watch unfold.

Depends. What do you know about Texas infrastructure? Aren't Texan homes made to cool down at night to evade the high heat of the summer? Same with roads? Sure natural gas pipes and other critical parts can address potential freezing problems in the future, but the sparse landscape of Texas makes brining outside electricity an hassle. From the outside, this seems like a perfect storm. I'm sure lots will be learned for such extreme events in the future.

Flying J has been a great investment. I think Buffett wanted to buy PSX, but got rebuffed, was a good investment. XOM was more of a cash holding idea, according to Munger, and it ended up not working due to the drop in oil.

8.6bb investment in Verizon. $4bb in Chevron. That doesn't seem like as good a use of capital as doing buybacks to me. Exactly my sentiment. If I was told I had to choose between owning BRK or VZ+CVX it is not a hard decision. Question Buffett, easy to do. Proven wrong, many have.

Yea, I felt like this might not fit the bill. Sticking with BA lol.

Anyone say DaVita? Looks like that might be the winner. EDIT: "Might be" -- the amended 13D puts stake at 33%, but cites repurchased shares for increase.

BA made a mistake, but that doesn't mean its future isn't bright, someone is going to have to build large structures in space some day. Plus, the odds I'm right are basically 1 in 3000.

BA

He was anonymous on youtube giving investment ideas and working at mass mutual at the same time. Masshole regulator always gets in the way...

So I should sell my silver coins?! As a modest coin collector, I find that hard to do, but if we get some gme action in the silver market and it translates over to the coins, I might dabble with new found wealth lol

This action hero also ran a 4 minute mile. Legend! Dude's definitely going to get a movie one day. "The Big Short Squeeze"

The Legend's investment process is right up this board's alley: Edit: Adding part 2:

Another way to look at this -- they converted their long duration bond portfolio into a set of income producing real assets at BHE and BNSF. The yields are better and the risks are better than long duration bonds at this point in the bond market cycle. Further, based on Christopher Bloomstran's deep dive, they used the accelerated depreciation credits at BHE and BNSF as a secondary method of reducing tax payments and increasing cashflows. As well, based on Brooklyn Investor's charts, they have built up a large cash component in their portfolio to backstop insurance losses and to provide optionality for opportunistic acquisitions. This is not all black and white but the big asset allocation shift of the last ten years (see attached) has been the movement of funds from longer term fixed income to cash and equivalents. This movement raises two questions (the indirect one raised by wabuffo and a direct one). The indirect (and retrospective) one: Returns would have been better if the longer term fixed income portion would have grown proportionally to float. The direct one: Does the current (and growing) allocation offer potentially significant optionality value? (my answer is yes) Part of the decision in shifting from bonds to other assets (cash, owned income producing assets) is about expected future returns. The move seems correct, but the unexpected happened during the recent COVID panic -- government became a lender of first resort where normally Berkshire would have had its pick of distressed assets. A similar crossroads is appearing now for Berkshire. AAPL is starting to flatline in terms of its EBIT growth and topline sales growth, but it's priced for some large expectations out of the business. Does Berkshire exit, partially exit or hold due to the expected tax hit? In 1998, Berkshire was facing a similar question with very sizable paper gains in Coca Cola, Gillette and American Express in particular. Berkshire had an out where they turned a ~3x BV share price into General Re with a merger where they acquired a substantial amount of float and a bond-heavy portfolio that they turned into cash. So, giving up a bit of equity to acquire a cashable asset was enough to de-risk an overvalued portfolio without incurring a very sizable capital gains hit from selling KO, G or AXP. Do they interrupt compounding at lower rates going forward and take the sizable capital gains tax hit? History says no, but the new answer may be something creative just like the last time. IIRC he has said not selling KO at the peak was a mistake. I think he is an expert at learning from mistakes. Maybe a swap for like the deal they did with Graham holdings somehow? This was brought up when Apple was trading at $120. Apple is good as any investment at this point. If the market crashes and opportunities arise, he's got $100 plus billion to work with to make ample returns.

NVGS - Navigator Gas. I wouldn't be surprised if it trades closer to book value or around $17 a share in next year or two if earnings come in at or above 2015 records The catalysts are beginning to accumulate: Ethylene Terminal fully operational (50% interest) Ethane/Ethylene shipments to benefit from first year of Luna pool Handy-size and midsize shipping rates firming due to increasing utilization Two Handysize-only terminals become operational in 2021 (NJ and Canada) Risks: No global growth, or lackluster growth Delays or disruptions in ethane/ethylene/NGL projects Spikes in bunker fuel cost not offset by rates Spike in handy/midsize order book (~2 year build rate, order book currently clean) Toss-Up: Venezuela sanction relief

Steelers.