gfp
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Posts posted by gfp
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Berkshire's 13F is out showing unsurprising moves that we mostly already knew about. Added a bit to AAPL, CVX, ALLY, OXY, etc.. Finished selling off VZ, sold half the STOR.
Also, New England Asset Management 13F isn't out yet but it looks like they added $583.5 million worth of HPQ at $35.71/share over at General Re on 4/6/2022 so that should show up over at NEAM.
(These were disclosed on this Form 4 which caused HPQ shares to jump the next day: https://www.sec.gov/Archives/edgar/data/0001067983/000089924322014160/xslF345X03/doc4.xml)
The ATVI stake increased a little bit - I don't think he wants to go over 10% here for the short swing profit rule or just the Form 4 requirements. Under the surface he is trading this position a bit.
At National Indemnity, he bought 8.6m ATVI shares at 77.69/sh on 4/29 and sold 6.99m ATVI shares at 78.57/sh on 5/6.
Also at National Indemnity he added $97m of BASF.
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6 minutes ago, Gregmal said:
Kind of funny how Michael Burry can hold his highly exotic housing short for 3 years, but he can’t hold a stock for more than a few months.
no joke:
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12 minutes ago, stahleyp said:
Burry is taking his bearishness to a new level. All holdings from last quarter were sold. Has one holding that's new of which is a very small position.
Keeping it classy with the sole holding of a private prison / mental health facility landlord.. Wan't it Burry that coined the "ick" investing style back on the message board days?
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I believe it is discussed on page 40,
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Other earnings/loss consist primarily of Berkshire parent company investment income and corporate expenses, other intercompany interest income where the interest expense is included in earnings of the operating businesses and unallocated income taxes."
So the answer to your question would be that while almost all of the investments are held inside insurance companies (or BYD in the Energy company), Berkshire parent company owns some investments and those investments generate income.
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One thing I noticed in this report is that towards the bottom of page 7 they mention that a new accounting pronouncement that will go into effect at the beginning of 2023 is currently projected to reduce shareholders' equity by $6-7 Billion (ultimate amount to be based on interest rates at that time). ASU 2018-12
They mentioned it last quarter but this quarter they included an estimated ballpark figure if rates stay about the same.
Quote:
We will adopt ASU 2018-12 as of January 1, 2023 using the modified retrospective method, whereby revised cash flow and discount rate assumptions as of January 1, 2021 (the transition date) are applied to contracts then in-force, with liabilities then remeasured as provided under the standard. The cumulative effects from discount rate assumption changes as of the transition date will be recorded in accumulated other comprehensive income and the cumulative effect from cash flow assumption changes will be recorded in retained earnings. While we have not finalized our assessment of the impact of the adoption as of the transition date, we currently believe that the changes in discount rate assumptions will have a greater effect on our recorded liabilities than changes in cash flow assumptions. We currently estimate that as of January 1, 2021, the adoption of ASU 2018-12 will reduce our consolidated shareholders’ equity between $6 billion and $7 billion from the amount previously reported, primarily due to the low interest rate environment at that time. However, the ultimate impact of adopting ASU 2018-12 will be based on the discount rate and cash flow assumptions determined as of the January 1, 2023 adoption date. We, therefore, continue to evaluate the effect this standard will have on our Consolidated Financial Statements.
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15 minutes ago, rolling said:
My numbers say 8B in June, and zero in april and may. Did not find july data, though. July numbers attending to stock price most likely took it to the 10B someone mentioned
June:
2397 at 425,870.54 = $1.02 billion
plus
25,462 at 276.75 = $7 MILLION dollars worth
(there is also a press release that spells it out "approx. $1.0 billion was used to repurchase BRK shares during the quarter")
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59 minutes ago, adesigar said:
Maybe my numbers are wrong but was it a 10 billion buyback in the last 3 months. Actually mostly in the last month or so
I think your numbers are wrong. A little over a billion dollars worth during June and then another half billion or slightly less spent after quarter end through July 26th.
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I do think it was a taxable cash deal with Greg Abel. A long term capital gain. I'm sure a chunk is going towards philanthropy as well. There is a certain badge of honor for Berkshire executives to purchase their Berkshire shares with their own hard-earned after tax money. Just like Ajit did and just like Warren did.
It will be nice to see Greg buy some shares in the open market when he is allowed to.
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11 minutes ago, yesman182 said:
From the 10Q.
In June 2022, BHE acquired the BHE common stock held by Greg Abel, Berkshire’s Vice Chairman - non-insurance operations, for $870 million. The purchase was pursuant to the terms of a shareholders agreement between Berkshire, BHE and BHE’s non-controlling shareholders. Berkshire recorded a charge of $362 million to capital in excess of par value for the excess of the consideration paid over the carrying value of the acquired noncontrolling interest.
I noticed that too. Sort of surprised they did a taxable cash deal when he had the option to do a tax free swap into Berkshire shares but way to go Greg! New hockey rinks for everyone!
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25 minutes ago, gary17 said:
fair & friendly acquisition
lol
It could be worse -
"The Consortium's proposal further provides that the proposed transaction will be subject to a non-waivable condition requiring approval by holders of a majority of Atlas common shares not owned or controlled by the Consortium, senior management or their respective affiliates."
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3 minutes ago, ValueMaven said:
the warrants alone using some very basic assumptions are worth at least $8-$9B...maybe as high as $11-$12B ... they are $6ITM currently. Using today's price, strike of $59, and 7 years till expiration you get a rough value of between $14 - $16 per warrant ... Berkshire owns 85M warrants ...
Since the warrants can't really be transferred to anyone else to capture the time and volatility premium before they are exercised, they really only end up being worth their in-the-money intrinsic value (currently a little over $500 million). Warren gets the optionality, which has value, but can't receive payment for that value. I'm sure the accountants will still value them under Black Scholes and a set of assumptions about time-to-expiry and mark them accordingly - but that value will never show up as money in the bank.
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That business was part of Fox & Roach, a realtor that HomeServices acquired.
Not even sure if HomeServices of America owned Fox & Roach when the alleged redlining took place.(edit: HomeServices bought the company in 2013, the investigation covered the period 2015-2019) -
57 minutes ago, jbwent63 said:
My understanding is that the 20% threshold is just a guideline at which one would consider equity accounting. Given the size of AXP, and BRK's lack of influence over it (not involved in day-to-day decisions, board members etc.) I would not think that the equity method would apply at this level of ownership.
That's correct - Berkshire has a bunch of specific agreements in writing with both AXP and the Federal Reserve that would almost certainly exempt them from required equity method accounting. This letter from 2019 references the many agreements that are in place and their periodic amendments, for example:
https://www.sec.gov/Archives/edgar/data/4962/000000496919000036/exhibit_101.htm
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Since this is largely Canadian forum, I am happy to report that I have just returned home from my first trip to Canada. A wonderful week in Victoria and Lake Cowichan. We had a great time and I can't wait to return. Victoria was certainly a nice change of pace from New Orleans. I guess Vancouver Island is a rain forest. It certainly looked the part.
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I'm sure it is an interesting book and the reviews have been positive, but this stuff wasn't exactly a secret. (former vintage Porsche owner here, full disclosure)
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9 minutes ago, RedLion said:
Anyone looking at TIPS now that the real yields have come up over the last year? I've been maxing out I bond allocations, but I have a lot more money I'd like to put into something like this. Looking at 5 year TIPS, and if I'm understanding right they're paying a 0.5% annual yield adjusted for inflation. When this thread was opened I believe all the TIPS were in the negative yield territory.
Bill Gates' personal money manager Michael Larson just purchased some TIPS closed end funds with his personal money. He is on the board of these CEFs because Cascade holds very large positions in them. FWIW ->
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Pilot got someone else to pay for the EV fast chargers - sounds smart
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This article has most of the interview and is not behind a pay wall -
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Buffett still buying OXY (but not today, highest price paid 59.50 this week) - another $700m
https://www.sec.gov/Archives/edgar/data/315090/000089924322025723/xslF345X03/doc4.xml
Ron Olson buying Berkshire
https://www.sec.gov/Archives/edgar/data/1067983/000120919122041510/xslF345X03/doc4.xml
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yeah, just google, there were a ton of articles at the time. Buffett learned it from Boilermaker Mike... the rest is history
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If the question is from 2009, he was most likely selling puts on BNSF. Buffett sold a ton of puts on BNSF that he intended to have executed as a way to accumulate the stock.
I don't remember much put buying by Buffett.
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Warren and Astrid at Sun Valley this week with their BYD masks. Don't worry, Mark Millard can keep buying OXY shares while Warren is on holiday.
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18 minutes ago, Parsad said:
The equity and bond losses will be more than offset by the gains in the RFP and JAB transactions. Add insurance underwriting and interest income, and Fairfax will be probably the only insurer with positive earnings in the 2nd and 3rd Q of 2022. While sitting on all that cash that they can put to work in equities or bonds that have taken one hell of beating this year so far! Cheers!
Doesn't seem like any of the positives would be recognized in the 2nd quarter so there would surely be a loss reported for Q2 - right?
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Lithium Iron Phosphate (like what BYD manufactures) use no nickel and no cobalt. They are not limited to low end, but do have lower energy densities so are either bigger and/or heavier than their competitors. They will be used extensively in vehicles and stationary storage. They are also the top choice currently for server-rack type home backup batteries. They are safer - less likely to catch fire. They are also very durable with little loss over many charge cycles - several thousand charge cycles to 80% capacity. There is a market for used cells that have already degraded to ~80% and those cells still find a use at their discounted cost.
Even Tesla is buying some Lithium Iron Phosphate batteries for the standard range cars. Rumors are that they will soon be buying from BYD as well.
I use Lithium Iron Phosphate for power back-up at home for storms (not whole house power, I use natural gas for that)
Buffett/Berkshire - general news
in Berkshire Hathaway
Posted · Edited by gfp
Warren paid $138.37 / share for 3.879m shares of AAPL on 5/20/2022, for a total cost of $536,724,551
So the quarter-end Apple position is something like 915,226,526 shares ($158.3 Billion at today's close)