KPO

UNH

Agree on Winchester. They should spin or sell it since there’s no real synergy with the chemical business, plus it would speed up the debt reduction timeline.

I’ve looked at it off and on for years, including well prior to the Dow transaction. Like IFF, these Reverse Morris Trust transactions typically take a while because they start life with challenged balance sheets. What do you like about it at the current price and place in the cycle?

It may be a shot across the bow in an attempt to get the board to consider alternatives to the split. One could be a partial divestiture to Berkshire in exchange for their equity stake. I’d prefer they sell and move on, but that’s going to be tough to pull off without further cratering the shares. Whatever the case, it’s Greg’s first big public move, so it will get some scrutiny.

https://www.sec.gov/Archives/edgar/data/1637459/000110465926005089/tm263595-1_424b7.htm This is interesting. Greg’s first act as CEO may be disaster remediation.

Nintendo for the first time in over three years.

To my message, do you think Airbus is “particularly cheap” currently? It literally hit an all time high today and is at the highest valuation on every metric than it’s been in years. What metrics are you looking at and what growth rate are you expecting that make you excited here? To the point of the thread I assume you’re in agreement it has a decent moat?

Typically monopolies or duopoly’s fit the bill, so I’d suggest BA & Airbus. It would take over a decade to replicate either one of their heavily regulated designs, as well as their manufacturing scale. Neither is particularly cheap currently, and that’s the trick…..finding companies with a moat at a reasonable price.

Don’t feel bad. I sold half of mine today at a 68% short term gain. I viewed it as a trade as well. My only issue is I wasn’t smart enough to buy this one in a tax deferred account (something about letting Uncle Sam shoulder a third of the downside if it doesn’t work out). Oh well.

Nope. You pretty much got it. Love the accountability aspect of what you’re doing here. Thanks!

Does cash include TLT? There’s more to this one than just the yield. It has tremendous leverage to lower rates. Just look at where it was a few years ago.

Holding cash and cash equivalents isn’t typically ideal from my perspective, but there’s a time and a place where it makes sense. The option value is another bonus.

I wouldn’t be surprised to see fixed income outperform the large cap equity indexes in the next several quarters. Something like TLT could have a satisfactory total return (I.e. 20% range) in the rate environment I’d expect next year. Apologies in advance for the boring call.

Thanks for sharing. One of the more honest investment interviews I’ve heard since Munger’s last. His comments about the Fed and interest rates towards the end are spot on. What a rational person. Would be nice to hear from him once a year.

COLD & WY

Starter in MOH

He spoke to a lot of audiences with this one. Really enjoyed reading it and glad he’s planning more…..at least as long as his health continues to hold up.

Starter in COLD for my income portfolio

A bit more WY

lol. Good catch. That’s exactly what I meant.

WY starter

He’s congenital, but ruthless. A good outcome for Berkshire shareholders. Will be interesting to see if this increases the likelihood of CVX or XOM to acquire OXY now that it’s more of a pure play O&G asset, and with a slightly cleaner leverage profile.

Sort of stunned that Berkshire gets to keep the preferred and it’s all cash. Seems a much better deal for Berkshire than OXY given the tax leakage and still owing Omaha a rich dividend. Good for Buffett and Abel!

This article sums up my view of why the preferred stock makes sense here, at least from OXY’s perspective: https://www.barrons.com/articles/berkshire-occidental-chemicals-buffett-b59ac190

Well said. I think Berkshire is uniquely positioned to buy this at a reasonable price by giving on the preferreds. If it’s an all cash deal without an auction, that’s a bad look for the OXY BOD.