ValueMaven

@thepupil why have those MMP bonds fallen so much? It's 20 year paper I get it - so a lot of duration risk - but the par on the credit in my view is money good. Thoughts??

@thepupil Those MMP Corps you highlighted are down another 20 points (mid 70s) ... what do you think of them here given the move in rates?? I find them very interesting imho ...

Stock is cheap here - hope Warren is buying back aggressively !!

6m t-bill just hit 3.9% ... upcoming auction on the 26th as well ... seems attractive

I bought the TIP ETF this morning ... might buy some on TDirect as well

@RedLion what about the TIP ETF? Or you dont like the 20bps management fee??

TIPS finally offer interesting yields. After offering negative real-yields for the past several years, the 5Yr TIP has a REAL YIELD of 1.13% - the whole real curve is now offering 1%+ even 30yrs out. The TIP ETF for example is down about -10% YTD, and down $20 from its high earlier in the year. You are now finally getting some very attractive/cash alternatives at the current prices. I am not a TIPS expert - so please shoot this thesis down.

What is the best way to do that then @RedLion ... I know almost nothing about TIPS

1Yr just touched 4% ... FYI

I like the dividend, the stock is massively oversold, and you have a possible catalyst in the sale of the business once the old-man is no longer around. I disagree its a bad insurance company ... look at the combined ratio overtime vs. peers. Costs are very low vs. other auto-insurance companies and they benefit from the low-duration fixed income portfolio which after 10+ of earning nothing is finally generating some income. Sure they dont buyback stock - but they basically pay everything out to shareholders. Hardly any leverage as well

bought MCY today

The idea is/was that Marmon, Precision Castparts, Alleghany, and Oriental Trading could do a lot of these under the radar bolt on acquisitions away from the parent HQ.

This is an amazing asset and would have been perfect for BHE. To bad Berkshire didnt rebid. https://www.wfaa.com/article/money/business/texas-power-grid-a-great-quarter-oncor-reports-229-million-in-profits-during-hot-texas-summer/287-1a45fb21-04a2-47a0-b126-3b2a4d8223fc

Thank God!! Let's hope they start getting more aggressive. I think its a combo of Warren/Munger/Abel saying enough is a enough...think about it - the BYD gain alone is equal to 2yrs of BHE CAPEX ... it's been a massive homerun

@nwoodman interesting that you have MKL undervalued by such a large discount?? Why do you think that is??

Great article in Barrons on BHE yesterday https://www.barrons.com/articles/warren-buffett-berkshire-hathaway-utility-51661548484

Really interesting. Thanks for sharing that!

Which does better? Cuz I have nothing better to think about on a Sunday afternoon

Tipswatcher is saying that Nov-22 reset rate (which will apply when you buy in Jan-23) is looking to be north of 6%. This is turning into a heck of a 3-4 period reset rate for these. Glad I was able to allocate back in Dec-21 and Jan-22.

@Xerxes Thank you. Yes - most here are aware that this might have happened. BYD has been a massive homerun for Berkshire. Charlie loves BYD, but you can tell Warren is less so, and historically has defered to Charlie on the position. I'd love for them to realize the $8B gain and blow it back into capex projects at BHE.

Buffett's equity position is 2x larger in CVX vs. OXY. That is the real story imho

Ok article. Frankly - I could see Berkshire swapping out the Preferred for possibly Oxy's chemical business, or something similar to what they did with P&G and Duracell ... think about it - OXY would reduce its interest costs by ~$800M per year, and Buffett would get a trophy asset...with that said - this part caught my attention: People familiar with deliberations at Occidental said the company’s leadership believes Mr. Buffett might consider making an offer if oil prices fall, bringing down Occidental’s stock price. If Mr. Buffett made an offer the company viewed as fair, a majority of the Occidental’s board would likely approve presenting it to shareholders, one of the people said. This is turning into a really nice investment for Berkshire

FERC document shows Berkshire requested and was approved to accumulate up to 50% stake in OXY (from current 18.72% stake) (Occidental Petroleum Corporation)

Also bought more Markel!!

He basically bottom ticked the Apple buy ... not bad timing !