KPO

AEGXF is more of a relative value purchase on what is likely a short term (3-4 quarter) dislocation. I own zero mutual funds or broad equity market ETFs, so PEP is an example of how I build a core index-like position very slowly over time as various sectors sell off. Other recent examples include UPS and KMX. During COVID I did this with natural gas pipelines, insurance, real estate and O&G. It’s a different way of building broad exposure without implicitly overpaying through index ownership as most have done the last few years with the heavy MAG-7 weighting.

AEGXF & PEP

KMX

https://www.businesswire.com/news/home/20250415280744/en/HomeServices-of-America-Announces-Leadership-Transition You have to wonder if the rumored sale and this move are related? If so, why make the old CEO chairman vs. simply showing him the door?

MODG yesterday AM

Starters in TGT, LEN.B, TLT; More M

Appreciate it. Btw, I agree with much of what you’re saying in terms of a basic O&G thesis, and as such typically have a core position (5-10% exposure) as a hedge, mostly in my IRAs.

Probably need to move this conversation to the energy thread, but I’d be interested in your views on specific O&G companies you like here and why. Over my ~30 year investment life I’ve found O&G to be a great geopolitical and inflation hedge and have only seen significant rapid draw downs like last week a handful of times, all of which have been accumulation opportunities. I tend to like the majors due to the diversity that comes with LNQ, midstream and downstream/ refining/chemicals exposure, and largely agree with you on OXY despite owning some (bought well before CrownRock, which is a deal they didn’t need). Do you like SU here? Others?

ABNB, M, MGM

ABNB

Thanks for sharing. Page 143 is important. I’m surprised this hasn’t gotten more publicity. I’ve been out to the Salton Sea and seen some of this. Wild place, which ironically may be key to future power needs for the US (along with the Permian basin). Ironically OXY is involved in both places.

Sold almost 10% of my covid era FRFHF

Increased MGM, AEGXF & HST by ~30% each

Given the existence of the founder controlled B shares, neither public class hold any sway over voting matters. I’ve seen a similar dynamic with BF, which is more perplexing.

BBY has bought back ~50% since 2010 and doesn’t seem to be stopping, plus they have a net cash position and a >5% yield, that itself keeps growing.

Maybe what he and the WSJ is saying is true, but in the inverse. Would Berkshire try to buy Compass? Stranger things have happened.

I bought a bit more MGM

Generally agree, but down 30% from highs and the lowest valuation by several metrics in a decade suggests it’s starting to get getting overplayed. These assets will be in place and productive long after the tariff war of 2025. That said, I agree there’s likely more downside, so I’m wading slowly into CNI.

More CNI

Increased RTO by 50%, increased FRPH by 25%, starter in CNI (first rail purchase since late 2009).

Starter in MGM

BGS

Increased RTO exposure by 40%. If present management can’t integrate what they’ve purchased, I suspect PE would happily do it for them. This is an attractive cash flowing industry in similar form to environmental & waste services. At some point the multiple will reflect this fact as it already has with ROL.

I actually love the exact idea if they could pull it off at a somewhat reasonable valuation. Berkshire should pursue dominant private companies with sticky products like Epic with a willingness to use equity for the right targets (I.e. let the owners/founders diversify in a tax advantaged way). Back when they did the Wrigley deal I was hoping Mars would find a home with Berkshire. Mars has grown too large since then with all the animal health/pet-related acquisitions.

That’s a very left field idea. Great company. I’m not sure if Berkshire would pay up for it, but it would be a great way for Judy to diversify. Whether it’s Epic, or anyone else, an equity driven acquisition would certainly be a bold statement for what Buffett thinks of the present valuation. I know he’s very much against the concept, but if you subsequently repurchase the shares I don’t see much harm in it.