ValueMaven

Closed End Muni Funds have been CRUSHED YTD ... some down -25% to -30%. I live in NYC and have been looking at Blackrock MuniYield NewYork Quality Fund: NYSE: MYN. -8% discount to NAV ... fairly high quality ... and about an 11% tax adjusted yield ... these are super long duration assets with leverage. I do agree there is some wreckage here that is worth looking into for those of us that general hate fixed income

Charlie Rose is not as good of an interviewer anymore. That said, Warren is as sharp as ever. Thank you for posting this!!

Looks like the Y deal will all but close. Go Shop ends tonight at Midnight EST. No one is willing to outbid Berkshire here esp given the mark-to-market losses on the fixed income portfolio in 1Q. The Agg had its worst quarter in 40 years down -6% !!

May reset rate is a whooping 9.62% !!!!!

Bought some OXY equity near the close. I've very interesting in following this one closer.

I dont think there will be another bidder for Y. Y fits really nicely inside of BRK for many reasons. It's a solid acquisition!!

Funny - that also really stood out to me as well @CassiusKing1

https://www.bloomberg.com/news/articles/2022-03-30/warren-buffett-occidental-petroleum-investment-goes-big

Sharing: https://www.ft.com/content/c703b53f-2b04-4fe5-aa7f-b18c5e3e95bb

Of what? Pipeline assets? The 8% preferred with warrants was a no brainer. The common stock at $55...not so much

I dont see another bidder coming through - although I could be wrong. I think the rise in Y's price was driven by ETF flows. Look at the trading pattern in the stock. Also the size wasnt that large.

A lot of rumors that Buffett will acquire OXY. I dont know how I feel about this - given how cyclical this business is, and board-line distress this was just 18 months ago. That said OXY produces 1% of the worlds oil. Yes they are rapidly deleveraging and seem to have gotten some common sense. I dunno - could BHE acquire OXY and merge both...possibly. OXY has a 20% current FCF yield using current 2022 EPS estimates - so who knows.

Everyone is saying how inactive Buffett has been and focusing on the cash pile. I totally disagree. Over the last 6 years you've had: PCP deal ($30B), D pipeline transaction ($10B), Buybacks ($50B), OXY loan/equity stake ($10B preferred plus another $7 in equity), and the pending Y transaction ($12B).

Equity warrants from the preferred deal are now in the money! Berkshire effectively controls 23.5% of the company plus another $10B in that hybrid preferred

Finally had a chance to read through the 10K and the 2021 annual letter. This is a really nice acquisition for Berkshire on several fronts.

The deal isnt pricey at all imho. Not sure what he is looking at?!

fair point!

How about the timing of their hedges and massive macro calls @Parsad ?? The valuation difference you correctly note is the difference between Quality and Deep Value. It is what it is - and doesnt tend to revert imho!!!

I read the barrons article. They suggested Markel could bid with stock. I highly, highly doubt that happens. The article is a very interesting read.

I'm a big fan of the deal and the price paid. Glad it finally happened

reading the press release - looks like Buffett still loves Brandon: 'I am particularly delighted that I will once again work together with my long-time friend, Joe Brandon'

Weston Hicks was an AWESOME CEO. I'd also pointout that John Burns back in the day helped to create BNSF - with the merger of Burlington Northern and the Santa Fa railroad ... a lot of history here.

I like the deal. Y has a bunch of really boring businesses, but is very profitable and strong underwriters from the Insurance side. Diversifies Berkshire insurance exposure. I know Buffett loved Brandon at one point - but wasnt he forced out of Gen Re due to a weird AIG transaction back in the day? Obviously Buffett/Jain knows a lot more about this when we do. Good use of capital and a fair price. Let's hope this closes.

What do others think about these PE-to-PE deals? Just today Blackstone bought a stake in One Manhattan West from BAM. While BAM is in talks to acquire Blackstone's La Trobe Australian based non-bank lender.