ValueMaven

OXY stock is on fire - north of $65 and the warrents are now ITM by over $6 per share w/another 7-8 years to go.

Greg is one of the best Berkshire analysts out there ... so not a relevant comment @KPO

BHE has a negative tax rate. Not many narrow moat businesses can say that! He has also said before that BHE is a bit of a crown jewel inside of Berkshire. Regardless BHE is going to be worth a lot more in 5-10 years in the future. Let's hope they make a distressed acquisition sometime during the next downturn!

A representative from Trident’s parent company, a Berkshire Hathaway affiliate, said in a statement that the resolution included no finding of wrongdoing and that Trident “strongly disagree[s] with the agencies’ interpretation of Trident’s prior lending practices.” “Trident and any affiliated companies have never denied or discouraged access to mortgage loans or other services based on race,” according to the statement.

Greg Warren of Morningstar (one of my favorite Berkshire analysts) is out with some new commentary from a few days ago. Worth hunting down!

Warrents are now ITM by about $5 per share, with another 8 years to go. Berkshire effectively controls ~26% of OXY's common stock + $10B preferred at 8%. WOW. I do not have time to play around with BSM assumptions for the warrents - but these have to be worth many billions - figure at least $5-$7B alone. These warrents were issued basically for free as part of the preferred deal.

I am not a sempra bull ... so I dont know. They basically have three different businesses a traditional regulated utility business, a vast LNG business both here and in Africa, and ONCOR. Oncor is a very unique asset. Was a mistake for BHE to lose out. That said BHE has about~$50B of CAPEX project over the next few decades ... so we will see

AXP - massive quarter. By my estimates Berkshire is now a ~20% equity holder.

The more I study Sempra Energy, the more annoyed I am that Berkshire lost out on the ONCOR asset. That would have been an awesome asset inside of BHE. Such is life

nice find @gfp - why is it down -20% YTD though?? Mostly in TIPS as well ... these CEF always scare me... some EMD exposure, but still Western is generally considered a more conservative CEF manager

New: https://assets.empirefinancialresearch.com/uploads/2022/07/Berkshire-Hathaway-analysis-Whitney-Tilson-7-7-22.pdf The most interesting slide to me is slide 10 .. this is also one of the widest gaps to IV in sometime according to Tilson

Cant wait to see the FMV valuation of the warrents using BSM assumptions...should be in the next Q ... those warrents were a real sweet kicker!!

There is a 1.7% deal spread into the Y transaction currently. Assuming a tax-free account, you are looking at ~3.4% annualized return on a deal that will likely close in the next few months (Berkshire says 4Q)...worth keeping an eye on.

Looks like Berkshire might have sold out of BYD. A block trade occured that was the exact size of Berkshires stake. https://www.ft.com/content/23a53509-d732-41ce-aa40-87c7a9de8f31

Thank you for posting. No mention of the pipeline storage assets in the article, or the terms of the transaction/size

I cant wait till they close the Alleghany deal ... such a great move on many levels!

$50B of normalized earnings power for Berkshire is a bit aggressive. I realize WEB prefers to use look-through earnings on the stock portfolio ... however I've always questioned that approach. Is it really look through if Berkshire cant access them??? I think a much more rational normalized earnings is about $35B of operating income over a cycle with GDP plus 3-5% overtime - coupled with some modest sharecount reduction. Stock is cheap regardless. Will be interesting to see how aggressive the buybacks have bee in the $270 - $280 range...I'm guess BIGLY. I bet Berkshire crushes the SP500 over the next 10 years.

awesome interview - nothing new or major - but Chris makes a lot of interesting points.

There are a lot easier ways to do that for Berkshire if that was his view ...

Wild. I never seen this before out of Berkshire.

I really hope the subs: PCP, Marmon, Alleghany etc are allowed to do more smallish bolt-on deals like they have in the past...

@ParsadCan you expand on this point ... its a rather bold comment! 'And Gaynor's better at risk management than say the likes of Joe Brandon at Alleghany or many of the other Berkshire insurance subs other than National Indemnity.'

@SinbiusNo doubt ... I'm more concerned, or focused if you will on the durable aspect of the ~$40B of operating income annually that the business generates currently ...

Greg Abel is the single most important person at Berkshire outside of Warren currently. He oversees the two largest CAPEX business (BHE and BNSF - also MSR) which are extremely important.