redskin

What does age have to do with investing? Whether you are 12 or 95?

SP 500 did about the same

If you value BNSF at $100B it would be a 14% annualized return. UNP is valued at $150B

$4,000 in 2024 and $4,400 in 2025. $1,000 in Q1. Total dividends paid from BNSF to Berkshire since purchase has been $63.08 billion.

Ha. This is garbage. When he calculates the BNSF return he comes up with a current value of $39B but then says they should spin it off for $160B? He also doesn't include all of the cash these invesments have thrown off over the years. BNSF has returned over $60B to Berkshire since the acquisition. I think Warren also reported how much cash See's has contributed over the years without needing any additional investment. Not sure why I wasted my time reading that letter.

I haven't explored Substack. Where do you go within Substack?

There are no restrictions for Buffett to buy back stock. He will buy if he feels there aren't better opportunities. He seems to be content with 4.2% tbills with the option of future investments.

Using a purchase price of $34 billion and using Union Pacific's current valuation of $137 billion, I calculate an annualized return of 15%. This is with the annual distributions Berkshire received.

https://www.bnsf.com/about-bnsf/financial-information/pdf/10q-llc-1q-2025.pdf In the cash flow statement you can see BNSF distributed $700mm in Q1.

Great stuff, GFP. In the past, if they request confidentially, did it show up in the subsidiaries before it was reported by the parent? As far as BNSF, I go to the BNSF 10Q to see what they distributed to the parent. I keep a spreadsheet. Since Berkshire has wholly owned BNSF through Q1 2025, BNSF has distributed $59 billion to the parent (Berkshire).

Don Graham was very close to acquiring Facebook for something like $1 billion.

I think Buffett would cringe with this article. He would much prefer to be 'Capital light'. Apple has returned close to $1 trillion to shareholders through dividends and buybacks over the past 15 years. Apple could've retained that capital and exceeded Berkshire's 'Net Worth' by a significant margin.

Does anyone know where to find the podcast with the Pilot CEO that Warren and Greg mentioned?

So it looks like it was worth giving up the 6%

Berkshire has received $53.68 billion in dividends from BNSF since its purchase in 2009. Did he pay $34B for it?

The Forbes article gives his performance from 2006 through 2009. He was up 35% over that period. The S&P 500 total return over the same period was -2.6%. I don't understand how they could be critical?

I appreciated the link. There were some articles or information I didn't see. I liked the summary.

I know nothing about Ally, but you mention $150 billion in deposits. I assume those deposits are funding their loans. Berkshire would need to fund the loans if they sell the deposits. If you assume a bank can earn 1% ROA, they could make $1.5 billion on those deposits. Maybe a 10 multiple ($15B)? I would assume a lower multiple as you don't know if you will retain all of the deposits.

BNSF has distributed $50.58 billion to Berkshire since it was purchased in 2009.

Well said...

What was the price they paid for McClane?

https://www.wsj.com/articles/SB890230215616525000

I'm having a tough time finding anything cheaper and safer than WFC..

He bought about 15% of the average daily volume.