Buffett/Berkshire - general news

[Jurgis]

Alternative explanation for this and HCG might be that it's all Ted's ideas and Warren just signs off without much supervision. That's also not very believable, but just throwing it out there. I base this on the size of the positions which are really small for Warren.

 

I'm pretty sure that Todd and Ted both invest without supervision, at least in 'their' accounts.

 

Right. What I was saying is that maybe Warren was involved in HCG (and maybe Store) just for the weight of his name even though it was Ted's position/idea. I have no clue if "supervision" is bigger in such case.

[Ballinvarosig Investors]

http://www.pbs.org/newshour/bb/america-stand-just-wealth-says-warren-buffett/

 

Buffett on PBS discussing the economy and inequality. Not too much new there.

[John Hjorth]

It looks like this is a Ted Weschler pick.

 

https://www.bloomberg.com/news/articles/2017-06-26/buffett-s-bet-on-store-shows-not-all-retail-real-estate-is-equal

Store Capital Chief Executive Officer Christopher Volk said on Monday that Berkshire had been studying the REIT since 2014, occasionally holding conversations with management. Ten days ago, Buffett’s deputy investment manager Ted Weschler called the company to suggest a deal because the price had fallen to an attractive level, Volk said.

 

Thanks for sharing, Ballinvarosig Investors,

 

Now it makes quite more sense to me after reading the article. STO must have had a project pipeline with good prospects that it could not lift because of lack of capital, or it could speed up on execution on the project pipeline. Buy and build.

[Ballinvarosig Investors]

http://www.pbs.org/newshour/bb/america-stand-just-wealth-says-warren-buffett/

 

Buffett on PBS discussing the economy and inequality. Not too much new there.

Part 2

 

http://www.pbs.org/video/3002306670

[racemize]

Looks like the BAC position will be converted very soon.

[fareastwarriors]

How Warren Buffett’s $16-Billion Bet on Bank of America May Change With Fed Stress Test

 

Stockpicker’s Berkshire Hathaway could become the U.S. bank’s largest shareholder through a share swap

 

https://www.wsj.com/articles/how-warren-buffetts-16-billion-bet-on-bank-of-america-may-change-with-fed-stress-test-1498642203

[Guest longinvestor]

How Warren Buffett’s $16-Billion Bet on Bank of America May Change With Fed Stress Test

 

Stockpicker’s Berkshire Hathaway could become the U.S. bank’s largest shareholder through a share swap

 

https://www.wsj.com/articles/how-warren-buffetts-16-billion-bet-on-bank-of-america-may-change-with-fed-stress-test-1498642203

 

Here we go https://finance.yahoo.com/m/0ff6af95-a46f-3db2-8b04-3a45d1a4b074/%5B%24%24%5D-berkshire-hathaway-to.html

 

Who's next? We have what you need! All you need to do is get in trouble.

[John Hjorth]

How Warren Buffett’s $16-Billion Bet on Bank of America May Change With Fed Stress Test

 

Stockpicker’s Berkshire Hathaway could become the U.S. bank’s largest shareholder through a share swap

 

https://www.wsj.com/articles/how-warren-buffetts-16-billion-bet-on-bank-of-america-may-change-with-fed-stress-test-1498642203

 

Here we go https://finance.yahoo.com/m/0ff6af95-a46f-3db2-8b04-3a45d1a4b074/%5B%24%24%5D-berkshire-hathaway-to.html

 

Who's next? We have what you need! All you need to do is get in trouble.

 

Well, somehow, I'll have to raise the hand. Are you worried about BRK pouring yet another USD 5 B into major US banks? - Or have I plain simply misunderstood your last post in some way? Or are your thoughts about two US major banks in a terrible adverse scenario, with BRK as an anchor investor, the two banks [WFC and BAC] draining BRK for cash?

[Guest longinvestor]

How Warren Buffett’s $16-Billion Bet on Bank of America May Change With Fed Stress Test

 

Stockpicker’s Berkshire Hathaway could become the U.S. bank’s largest shareholder through a share swap

 

https://www.wsj.com/articles/how-warren-buffetts-16-billion-bet-on-bank-of-america-may-change-with-fed-stress-test-1498642203

 

Here we go https://finance.yahoo.com/m/0ff6af95-a46f-3db2-8b04-3a45d1a4b074/%5B%24%24%5D-berkshire-hathaway-to.html

 

Who's next? We have what you need! All you need to do is get in trouble.

 

Well, somehow, I'll have to raise the hand. Are you worried about BRK pouring yet another USD 5 B into major US banks? - Or have I plain simply misunderstood your last post in some way? Or are your thoughts about two US major banks in a terrible adverse scenario, with BRK as an anchor investor, the two banks [WFC and BAC] draining BRK for cash?

Latter, BRK as the lender of last resort. For the investee, they get the capital without smartasses who tell them how to run their shop, or attach covenants and such. Of course it's an expensive coupon.It will be interesting to see how such deals come to Berkshire in the future. There will be folly and suffering in the future, that's for sure.

[John Hjorth]

Thanks, longinvestor,

 

Absolutely worth to think about - as your posts always are here on CoBF. Yes, it's not near pocket money, what BRK has poured into WFC and BAC now, over time.

[John Hjorth]

News realase about the BAC preferred swap to BAC common from Berkshire, dated 30th June 2017.

[gfp]

Clayton bought another traditional homebuilder- this one in Denver:

http://www.9news.com/mb/money/business/denvers-oakwood-homes-sold-to-berkshire-hathaway-affiliate/454619228

 

http://www.itbusinessnet.com/article/Colorados-Largest-Private-Homebuilder-Joins-Clayton-Properties-Group-5035290

[gfp]

News says Berkshire is about to buy Oncor

 

https://www.wsj.com/articles/warren-buffetts-berkshire-nears-a-deal-to-buy-oncor-1499363036

[Guest longinvestor]

Clayton bought another traditional homebuilder- this one in Denver:

http://www.9news.com/mb/money/business/denvers-oakwood-homes-sold-to-berkshire-hathaway-affiliate/454619228

 

http://www.itbusinessnet.com/article/Colorados-Largest-Private-Homebuilder-Joins-Clayton-Properties-Group-5035290

 

Interesting display at the Annual meeting this year was a pre-built cabin. Something like a 400 sq ft one. Looked nice inside. Of course they had the usual Clayton home as well.

[Guest longinvestor]

News says Berkshire is about to buy Oncor

 

https://www.wsj.com/articles/warren-buffetts-berkshire-nears-a-deal-to-buy-oncor-1499363036

 

Berkshire energy grows contiguously, eastward. They are literally stitching the network together that will blanket the USofA in due course. Texas is also the #1 wind potential state.

[gfp]

http://www.businesswire.com/news/home/20170706006280/en/Oncor-Join-Warren-Buffett’s-Berkshire-Hathaway-Energy

[CorpRaider]

Didn't they also buy a "stick built" home builder in Colorado?  Sort of intriguing to me, given some prior comments he's made about his belief that the housing market will perform this year.  Bill Miller is really bullish on homebuilders too, if memory serves.

 

[gfp]

Didn't they also buy a "stick built" home builder in Colorado?  Sort of intriguing to me, given some prior comments he's made about his belief that the housing market will perform this year.  Bill Miller is really bullish on homebuilders too, if memory serves.

 

Clayton has been buying traditional site built homebuilders pretty steadily for a few years now.  Ever since they basically reached their limit as far as market share in manufactured homes goes.  Clayton has a very high market share of their industry when you include all the acquired marks.  The Colorado deal link is a few posts up I believe.  There is a big shortage of skilled carpenters in Colorado and a lot of other markets, which is constraining and slowing the homebuilding business.  But that can be a positive.  Seems like half the people I know are moving to Colorado these days.  Must be nice out there!  (or they're all potheads)

[CorpRaider]

Me too.  Two guys I have worked with just moved out there.  One is really freaking out about getting into the housing market too.  Smells bubbly...but I guess it's a bargain if you're moving from San Fran or TriBeCa.

[John Hjorth]

Mr. Buffett's total gifts in Berkshire stock now up to USD 27.54 B.

[Guest longinvestor]

Didn't they also buy a "stick built" home builder in Colorado?  Sort of intriguing to me, given some prior comments he's made about his belief that the housing market will perform this year.  Bill Miller is really bullish on homebuilders too, if memory serves.

 

Clayton has been buying traditional site built homebuilders pretty steadily for a few years now.  Ever since they basically reached their limit as far as market share in manufactured homes goes.  Clayton has a very high market share of their industry when you include all the acquired marks.  The Colorado deal link is a few posts up I believe.  There is a big shortage of skilled carpenters in Colorado and a lot of other markets, which is constraining and slowing the homebuilding business.  But that can be a positive.  Seems like half the people I know are moving to Colorado these days.  Must be nice out there!  (or they're all potheads)

 

Here's one more http://www.builderonline.com/builder-100/strategy/alabama-shakes-clayton-buys-birminghams-harris-doyle-homes_o

 

The Clayton acquisition is the fifth site-build company added to the nation's largest manufactured home builder, whose market share is 50% of the category, which accounts for seven in 10 homes priced below $150,000.

[Liberty]

https://www.wsj.com/articles/sprint-executives-have-engaged-warren-buffett-about-investment-1500055560

 

Sprint Corp. Chairman Masayoshi Son has engaged Warren Buffett and cable mogul John Malone in discussions about participating in a deal with the wireless company, people familiar with the situation say.

[gfp]

FT has an article about the power imbalances on the US west coast and Berkshire Energy's membership in the regional marketplace for excess energy in the region -

 

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=4&cad=rja&uact=8&ved=0ahUKEwjRq9e67ZPVAhVJxoMKHYiTCLYQqQIIKigAMAM&url=https%3A%2F%2Fwww.ft.com%2Fcontent%2F10d2852a-68d0-11e7-9a66-93fb352ba1fe&usg=AFQjCNEN9ToaxtiNilm9fUFeqc-OaHpuuw

[Guest longinvestor]

FT has an article about the power imbalances on the US west coast and Berkshire Energy's membership in the regional marketplace for excess energy in the region -

 

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=4&cad=rja&uact=8&ved=0ahUKEwjRq9e67ZPVAhVJxoMKHYiTCLYQqQIIKigAMAM&url=https%3A%2F%2Fwww.ft.com%2Fcontent%2F10d2852a-68d0-11e7-9a66-93fb352ba1fe&usg=AFQjCNEN9ToaxtiNilm9fUFeqc-OaHpuuw

The Western regional EIM is a pivotal development in the evolution of the utility world from the monopoly days. It's not a coincidence that the vast majority of BHE's assets are there. I read somewhere that the EIM is the face of the deregulation. I've been following the entry of BHE in the west and there's a lot of bickering from the incumbents. There are 38 regional regulators called the Bonneville power administration from the good ol days, plus the state's parochial interests colliding with market forces. Berkshire's billions and keeping rates low are massive disruption.

 

It would be a great question at the meeting next year. The backdrop of the huge investment in the west and these new developments like the EIM. What's the future etc.

[Kapitalust]

2017 Q2 is out: http://www.berkshirehathaway.com/news/aug0417.pdf

 

$99.7 billion in cash by the end of June  :o

 

Berkshire's cash pile represents 5.4% of Corporate America's total cash pile (https://www.ft.com/content/2cbc02d4-e0bf-3ece-9f5d-b9b063561e2b)