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Posted

The way DAL is trading ( static share price around $46) while other airline stocks are falling, Warren‘s bid put a floor under its price for the tone being. I bet he buys a ton of DAL as I type this.

 

Delta has a presentation out today fwiw -

https://www.sec.gov/Archives/edgar/data/27904/000119312520061029/d887033dfwp.htm

 

Interesting, secured credit AA- rated collateralized by a couple year old aircrafts in front of a major disruption in air travel potentially. Who the hell would buy this and what is the interest rate?

Posted

2% for the higher rated tranche, 2.5% for the other one if I’m reading Bloomberg correctly

 

Almost any insurance company in the world would buy it, I presume.

Posted

as of 12/31/19.  Outstanding Shares are 2.436B (Converting 700K A share and adding 1.385B B share) with BV of $428.563B equates to BV per share price of $176.

 

1.2X BV would be $211/share however portfolio is down so actual BV is also down since 12/31. 

 

Wonder if WEB actually does the realtime math on that?

Posted

I remember WEB saying one-time, that the time to take credit is when you don't need it. Cuz, when you need it, your on the wrong side of the "trade" - you're paying big time....

 

Amazing to see him raise 1B with a YTM of 0.04%... like you say, for fun...

Posted

It looks like this has not made it to global news yet and underlying reasons may vary according to interpretation but it seems Mr. Buffett has pulled out (4B CDN) from an infrastructure project on this side of the border.

https://theprovince.com/business/saguenay-lng-project-financing-in-doubt-as-buffett-pulls-out/wcm/40d8f36d-83f9-4927-858c-b7c274ed0ac2

 

This week, I've had my share of vertical volatility (ski week) and have not spent much time on financial news but I just saw the downhill slope of the 10-yr and 30-yr Treasuries. Some slopes can be challenging.

Posted

I saw that on my Google feed, but it seems to have too many "reportedly" and statements with qualifiers that express that's it's mostly hearsay not confirmed by the Company. No immediate confirmation from Marc Hamburg either, though it's not necessarily a decision made at Omaha, so he might be unable to confirm or deny. It just sounds too short of being adequately fact-checked to publish widely. It's also potentially non-news, i.e. some part of Berkshire was expressing potential interest in investing in a pipeline and decided not to go ahead prior to signing on the dotted line.

Posted

I believe it to be true.  It was a Berkshire Hathaway Energy deal. 

 

"The investment giant was going to provide C$4 billion ($3 billion) for GNL Quebec’s proposed liquefied natural gas plant 290 miles northeast of Montreal, according to Michel Potvin, a city councilor who heads the promotion agency in Saguenay, where the project is based."

 

Bloomberg journalists are usually pretty good at confirming a story with at least one source with direct knowledge of their subject -

https://www.bloomberg.com/news/articles/2020-03-05/buffett-drops-3-billion-lng-investment-in-quebec-reports-say

 

The "why" is probably guessing.  And of course BHE could come back to the table at any point. 

Guest longinvestor
Posted

I remember WEB saying one-time, that the time to take credit is when you don't need it. Cuz, when you need it, your on the wrong side of the "trade" - you're paying big time....

 

Amazing to see him raise 1B with a YTM of 0.04%... like you say, for fun...

 

Yes, being on the right side of trades indeed!!

 

There could be a time in 5 to 10 years when others may be looking for credit. Berkshire will be there, on the right side of that trade as well. Funny how this sort of thing happens over and over again. Simply because they can.

 

 

Posted

Gee, I don't like that news. Gates was the one I was counting on to keep BRK rational once Warren and Charlie aren't there.

 

He also left MSFT board, so it's not BRK specific.

 

But I don't like it anyway. IMO Gates >> Chenault.

Posted

I don't get it, how many hours a year did Gates have to spend at Berkshire or MSFT? Doesn't seem like much. It seems like he had most of the rest of his time for his foundation. So sad to see him leave.

Guest longinvestor
Posted

It would stand to reason that the Gates couple is going to focus full time for the rest of their lives on future pandemics and how to mobilize society better. Dr Hans Rosling influenced and implored Melinda Gates to keep it going, nobody on earth is better positioned than this couple to do something about this. We are witnessing epic botching as we speak.

Posted
Sad to see Bill G leave the board. Perhaps Berkshire can now buy back stock from Gates Foundation w/o any insider conflict of interest issues.

 

Perhaps Berkshire can now buy Microsoft.

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