KPO

Nice sleuthing here. It’s pretty remarkable how large this company has become since I started following it in ‘94.

Not that it really matters, but is Berkshire the first non-bank to $1 trillion in assets?

More SAVE a bit below $18 yesterday

I’m not. I was in town for a concert, but used to visit Denver a fair bit for work. Makes sense that the adjacent areas are benefiting as I wouldn’t hang out at the 16th street mall if I lived there based on what I experienced.

Bumping this topic given the ATVI success. I like the fact the business performed well post announcement to the point it wasn’t an unreasonable value in its own right in the mid $70’s, which is what you’d ideally like to see in these situations. With that said, what are folks looking at now?

I’ve spent the last few days walking 35-40K steps per day through the Union Station and central business district of Denver and it’s been eye opening. There seems to have been a second order effect of Covid that took 40-50% of the 16th street mall retail out. Homeless people were everywhere in what sadly resembled a post-apocalyptic world. Around Union Station I’d estimate 40-50% first level vacancy in a three block radius. We saw a Starbucks in the first floor of the First Western Trust building that didn’t have a single table or chair inside, so obviously getting ready to close. Also saw two beautiful brand new 4-5 story buildings by a Denver brewing company location that were 100% vacant. I was starting to warm up to potential contrarian commercial real estate investments, but this definitely stops those thoughts. Are others seeing this in their neck of the woods?

I’ve enjoyed his commentary in the past, so thanks for the heads up.

PFE

The second to last paragraph is kind of funny as you could take it to mean, “if not for my charitable giving I’d be the richest person in the world (or close anyways)”.

Definitely thinking about this. Nitrogen fertilizer exported to Asia, and really anyplace with natural gas arbitrage opportunities, is a possible way to exploit the low North American natural gas prices at the moment. What’s the best instrument is the question. CF maybe?

I don’t love retail, and don’t own any yet, but BBY is starting to get interesting at a >8% free cash yield, 4.9% dividend yield and net cash of ~$400M. As we’re hitting the three year anniversary of the COVID PC, iPad, big screen TV, etc super cycle I can envision a replacement cycle kicking off in the next year or so. They’re also starting to do some interesting things in the area of aging in place/elderly monitoring, which should be an attractive market as the baby boomers age.

CFFN starter

HST

TRC starter at the close.

Appreciate the idea. I’ll look at it further, but on a quick screen it looks like it has an ROE of ~5% at 2X book (compared to CFFN at 5% at 1X book). CFFN doesn’t screen well on dividends until you look at the specials. I believe they’ve paid more than 120% of the current share price in dividends in the last 10 years.

Finally had a moment to read this entire thread, which is very useful BTW. Going into it USB was a bank that made sense to me as well, but does anyone have thoughts on micro cap local banks like CFFN? They’re clearly not the most cost efficient operation, but how do you lose money loaning to predominantly Kansas & Missouri homeowners? Also, they have about the lowest uninsured deposit base that I’ve observed.

CVS @ $75

Same. And I thought I was the only one on here buying this boring company at an 11% free cash yield. Also added some Fairfax.

Thanks for sharing. Not sure much magic has been created by him in recent years, but agree with the notion of creating a simple and low stress environment to make decisions.

Starter in LSXMK at the close

Subway, which is on the block currently due to the co-founders passing, although it’s likely going to be an auction. While it’s the largest restaurant chain in North America, growth has stalled in recent years. I guess it would be interesting at the right price.

Makes sense. Congrats on the new acquisition. As the build progresses you might have to pass along tips on the finer points of moving down to JOE country in terms of property insurance, utilities, local contractors, etc.

Sold your keys house? I guess I need to get over to JOE land instead of the keys next time I’m in this part of the country.

For the most part the discounts are a function of the relatively high fee structure, but you’ll see discount anomalies during periods of market dislocations that make it worth following a few CEF’s to keep your finger on the pulse. Btw, if you’re a Berkshire fan you might check out STEW, if you haven’t already.

Not a public company, but when the largest franchised restaurant operator goes on the block, I’d hope Berkshire at least kicks the tires. https://fortune.com/2023/01/14/subway-founders-heirs-could-join-ranks-of-us-richest-in-10b-sale-deal/