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This might be worth a read http://www.amazon.com/Capital-Returns-Investing-Through-Managers/dp/1137571640 a couple chapter intro excerpts are available here if you are hesitant to purchase without a sample - http://www.palgrave.com/us/book/9781137571649#reviews as well some old OID issues have excerpts from his letters: http://oid.com/index.php?route=product/moneymanager&path=183

Westar Energy had been rumored to be a possiblility for Berkshire Hathaway Energy. Looks like they either weren't interested - or much more likely - the bidding got too rich to justify. Great Plains Energy won the "auction" - acquisition premium has been building in the stock for months http://www.wsj.com/articles/great-plains-energy-to-buy-westar-energy-for-8-6-billion-1464691927

For the common, Berkshire put in $4.25 billion on Heinz and another $5.26 Billion for the Kraft deal. Cost basis on the common should be $9.51 Billion unless I'm missing something. The preferred is about to be repaid for $8.3 Billion in June (600m above carrying value). It's been a profitable association for sure. For QSR, Berkshire owns 8.4 million shares of common. 1.75% of the company (almost the entire position) was purchased through 1 penny warrants. The rest presumably in the market before the deal for THI. At around $350 million, the common of QSR isn't a major investment for BRK.

"For example, lending people money can enable them to buy things today that they otherwise mightn’t have bought until later (if at all). If a consumer buys a boat today with money made available through a low-interest loan, that’s a boat he won’t buy next year. Lending people money doesn’t alter their lifetime incomes, meaning consumers may buy fewer boats later, when the loans have to be repaid, causing disposable income to contract." Sometimes the opposite is true. When a bank loans me money cheaply to buy an apartment building it directly increases my future income. I get the point about pulling demand forward, and I haven't read the memo yet, but it goes both ways.

Hi Futile! Thanks for BRK News all those years ago. That was a wonderful service you provided for the community.

They are total return swaps for the most part - derivatives contracts negotiated with counterparties, not exchange-traded. There was a thread here some time ago that discussed them: http://www.cornerofberkshireandfairfax.ca/forum/fairfax-financial/questions-about-ffh-equity-hedges/

Todd Combs moved to Omaha. Ted Weschler commutes from Virginia. Both have offices down the hall from Buffett. I'm sure they have home offices as well

Raiguel to succeed Montross as Gen Re CEO Adam McNestrie Kara Raiguel, a senior executive from Berkshire Hathaway's reinsurance division, is to replace Tad Montross as CEO of Gen Re, according to an internal memo seen by The Insurance Insider. In the memo Berkshire Hathaway reinsurance chief Ajit Jain, who now has overall oversight of Gen Re, described Raiguel as his "secret weapon". Raiguel, an actuary by background, has worked with Jain in the reinsurance division for 15 years, according to the memo. Jain said that the executive had been involved in establishing Berkshire's workers' comp business in California, overseeing its expansion into the Indian reinsurance market and setting up its municipal bond insurer. In the note Jain said discussions in recent weeks with insiders and outsiders had led him to judge that there was a feeling that Gen Re had become "less relevant". "That concern, together with the serious headwinds that the reinsurance business is facing and will continue to face, requires us all to consider whether and what actions might be taken to best position Gen Re for the next chapter," Jain said. He continued: "So, for the next 90 days or so, I have asked Kara to have as her first priority and chief objective to determine how best to grow Gen Re's book of business without sacrificing the underwriting discipline and integrity that has been the hallmark of the past few years, as well as how best to broaden business relationships without doing damage to the platform." Last month The Insurance Insider revealed that Montross was to step down as Gen Re CEO. Jain paid tribute to the executive, saying that he had done "an unbelievable job" and that his decision to step down was "the most unwelcome news". Some observers have suggested that the decision to have Raiguel report directly to Jain - whereas Montross had reported directly to Buffett - may suggest that he is in pole position to succeed the Sage of Omaha as Berkshire group CEO.

I don't think the Accumulated Earnings Tax applies to subchapter S corporations or any other pass through vehicle. It also doesn't really apply to publicly traded companies in practice. Private or controlled C corporations have to be meticulous about justifying the need for a cash cushion for a possible economic downturn, future expansion plans, etc etc.. in the board meeting minutes in case the IRS ever comes to examine them. "publicly held corporations are essentially exempted from the AET as a practical matter, since it is very difficult to establish a tax-avoidance purpose in the case of a widely-held operating company when no individual or small group of individuals typically has legal or effective control of the company so as to demonstrate that the corporation is being "formed or availed of" for the forbidden tax-avoidance purpose." full disclosure - not a tax professional

http://www.bloomberg.com/news/articles/2016-05-16/watsa-s-fairfax-said-to-near-takeover-deal-for-indonesia-insurer Fairfax close to buying Indonesian insurer: Bloomberg Canadian conglomerate Fairfax Financial is in advanced talks to buy control of PT Paninvest’s non-life insurance unit, according to a report on Bloomberg. The deal would value the Indonesian carrier at around $200mn, with an agreement expected to be announced in the coming weeks. The transaction comes with a so-called bancassurance agreement, which would allow insurance products to be distributed and sold through the branches of Paninvest’s lending affiliate PT Bank Pan Indonesia.

could be a newsletter, a chain letter type tout, an influential message board post, a rumor or "tip" overheard by an unsophisticated trader who didn't know any better on how to get in, or the ever popular Biglari revenge position (see ISIG, AIRT)

"Can anyone explain to me what the German fixed income manager was asking? I couldn't properly hear the question and Buffett was giving one of his tap-dancing answers. Gotta go back to the recording.." If I remember correctly I believe he was (after classlessly plugging his fund - why do people keep doing this at the mic? It is unbelievably tacky) asking if Buffett would consider closing his remaining CDS derivatives positions early by effecting an offsetting trade. Buffett didn't seem to hear the question 100% and talked mostly about CDS on BRK.

He took a job with Bill bonner in the private "family office" type product they market - I think it's called bonner and partners or something like that. They shut down the newsletter abruptly when he took the other job. It's all still agora inc though

I see what you are referring to now - it is a typo - BNSF transported over 700 Billion ton miles, not million. A rare typo in a Berkshire report.

BNSF's market share is much much higher in ton miles than it is in revenues, if that is what you are getting at - "In that respect, we are a strong number one among the seven large American railroads (two of which are Canadian-based), carrying 45% more ton-miles of freight than our closest competitor."

Current buyback number is between 120 and 121 on the B shares. If you want BRK shares the difference between 125 and 121 isn't going to materially change your results. BRK doesn't have $60 Billion cash on the balance sheet, but they are plenty flush to buy in a ton of shares if the opportunity presents itself. It usually doesn't. Declines in the stock portfolio are usually offset by retained earnings over the course of the quarter, as well as the previously mentioned swings to deferred tax liability. I don't believe that Book Value per share has declined quarter to quarter since the buyback was instituted. BV obviously did decline during the financial crisis, pre buyback policy. Wells, Amex, DaVita are down a lot but most of that will show up in Q1 results if prices stay where they are or decline further, not the annual report BV number. That gives BRK another 3 months of retained earnings to offset any after tax declines. When it comes to buying BRK at the buyback number, close is good enough

The PCP deal probably will not have closed by the end of the year. Also there is a large new purchase of Phillips 66. Kraft Heinz has signaled it will redeem BRK's costly preferred at their earliest opportunity, which I believe to be sometime next year. Expect a decent redemption premium for BRK if KHC redeems at the earliest date. Then you've got BRK selling down the Munich Re stake, Marmon Holdings buying GE Capital's Tank Car leasing business yesterday.. There are so many sources of cash and so many moving parts it's tough to predict where cash will be at any given time. But there will always be plenty.

More likely it was for the tender offer arbitrage. The spreads were large (3% in a couple weeks) and $500k worth is probably all they were able to get. BH is/was pretty illiquid. Or maybe they are going to buy more - but somehow I doubt it. It could never be a meaningful position.

There is one titled "Inside the Magic Kingdom" - maybe that is the one? http://www.amazon.com/Inside-Magic-Kingdom-Disneys-Success/dp/1885167237

I have experience, but they are very different in each market / municipality. You would want to get advice from someone who has done it in your exact market - or a title attorney who works with clients involved in tax lien sales regularly. In New Orleans there are 3 different (at least) types and the rules and risks are different for each. Generally, I have heard the rules are favorable for investors in some areas of Florida, but where I live it's not a great deal for the most part.

Thank You No luck. Only thing I am able to pull is for them is in the 60s. can you post an pdf of the document? Please? 239382082-Geico-1991-Annual-Report.pdf

Cash out 30 year home mortgage refi is about the best you can do for an individual. You pay interest starting now, but it's crazy cheap and tax deductible in the United States. Berkshire / Heinz / Kraft selling bonds the last few days is about the best you can do if you are an institution.

I've been adding as it dips below 140. Would love it if BRK stayed low as lots of cash comes in from arbs in the next week or so. BH, DTV, a lot of deals about to close.

It depends on how the Heinz write-up is handled. Last report had Book at about $98 per B share. Current book could be anywhere from 98 to 105 per B share, but the HNZ deal won't close in the 2nd quarter, so the jump could come in Q3.

How did you arrive at 11%? I get something like 8% plus a half year of the SPX dividend yield