ValueMaven Posted September 22, 2020 Posted September 22, 2020 Interesting. DaVita has been an interesting one for BERK. I'm glad they didnt buy it...
ValueMaven Posted September 24, 2020 Posted September 24, 2020 Another preferred + warrant transaction for grandpa Warren Berkshire plans to make a $600 million preferred-equity investment in Scripps to help finance the purchase of closely held ION, the people said. Berkshire will also get a warrant to purchase as many as 23.1 million Class A Scripps shares at $13 apiece. Scripps stock closed Wednesday at $10.47.
gfp Posted September 24, 2020 Posted September 24, 2020 Here are the basic terms. Ted Weschler learning the family business- • $600 millioninvestment from Berkshire Hathaway ‒ Dividend of 8% per year if paid in cash; 9% if deferred • Berkshire Hathaway also to receive a warrant to purchase up to 23.1 million Scripps Class A shares. ‒ Exercise price of $13 per share • The preferred stock will have no maturity date. • Berkshire Hathaway will not receive any board seats and will have no other governance rights. • While the preferred stock is outstanding, Scripps cannot issue a dividend or repurchase shares. *maybe they would be interested in purchasing a Miami TV station some day
rogermunibond Posted September 24, 2020 Posted September 24, 2020 Aren't the OTA broadcasters sitting on valuable spectrum that the FCC might be willing to allow them to lease out? I'll admit I'm not up on the latest in UHF/VHF FCC plans though.
voyager Posted September 24, 2020 Posted September 24, 2020 Aren't the OTA broadcasters sitting on valuable spectrum that the FCC might be willing to allow them to lease out? I'll admit I'm not up on the latest in UHF/VHF FCC plans though. Spectrum is kind of a catch 22. For broadcasters, you really need that spectrum to have good quality on your channels, so is more of a terminal value item rather than additional value. If you want to do the math, you look up each broadcaster's license and then apply the going rate of gigahertz per thousand people from the most recent auction. I used to work in the industry, so I have a decent understanding of it. The more important thing is OTT subscriber growth and OTT subscriber rates (currently less than half of what cable companies pay). If that continues to grow, broadcasters will be in fine shape even with cord cutting.
Xerxes Posted September 25, 2020 Posted September 25, 2020 I always find the "Schumpeter" column in The Economist fun to read. https://www.economist.com/business/2020/09/26/what-warren-buffett-sees-in-japan-inc
fareastwarriors Posted October 4, 2020 Author Posted October 4, 2020 Warren Buffett was blasted as 'washed up' for not buying during the coronavirus crash. Berkshire Hathaway has announced $19 billion of investments this quarter https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-19-billion-q3-investments-snowflake-dominion-2020-9-1029631281#
longterminvestor Posted October 5, 2020 Posted October 5, 2020 I believe Mr. Buffett's genius is the ability to continue to mature and grow his sense of place in the Berkshire System. For example, in his early years, he focused on pricing discipline - buying businesses at his price. Lesson has been learned and now he is above the notion to have the pricing discipline - it has become a learned behavior. Most managers spend their entire life just focused on that one lesson - price discipline. However as Berkshire has grown, Mr. Buffett discovers more important issues to tackle. A serious problem for Berkshire and Mr. Buffett is sustaining a normalized return above market average over long period of time as organization grows shareholder equity to a size unmatched in the history of the capitalism. For example, as headline says - "Buffett blasted for not buying". My opinion is Mr. Buffett is playing a COMPLETLY different game than everyone else. My hope is Berkshire shareholders are not saying, "man you idiot, you didn't buy", rather there was a complete calamity of unseen/unthinkable proportions with outcomes too difficult to predict and having dry powder was of utmost importance. Mr. Buffett's gut was to "buy when everyone else is selling", and anyone who doesn't know that, doesn't know the man. Despite his gut telling him to buy, Mr. Buffett paused....in my opinion, this pause was in part to a cardinal rule at Berkshire "No big mistakes". Monday quarterback shows buying in March lows was the right thing to do...for money managers/individual portfolio managers/stock jockeys...however Mr. Buffett is not in that game, he is playing the long game where 10yr returns are minimum to be measured. My own disappointments were mostly in the lack of share repurchase, not because the price was right, more so because the volume of shares available were enormous. Buying in bulk is Mr. Buffett's tool today. And he knows that, so again, when he reviews the volume of shares available during that period of time does he regret not buying...I doubt it....there were other "things" he was considering that the mere mortals and pundits would never understand or comprehend. These thoughts are all predicated upon the idea that Mr. Buffett still has his wits and is a learner everyday. If he is losing his marbles, then its the boards discretion to execute on a change. I trust the board, I trust Mr. Buffett ergo I am believing in something bigger than "he's washed up". There was a reason why he didn't buy and we as shareholders may never know. I do hope he shared that reason with Ted/Todd/Gregg. Then the lesson will endure and as shareholders we will benefit from the lesson for the next 50 years.
Xerxes Posted October 6, 2020 Posted October 6, 2020 I remember when the Dominion deal was announced, Bloomberg reported “buffet changed tactic after pressure etc”. As if the old man gives a damn what CNBC and Bloomberg commentaries are saying about him. Anyone with a deep conviction to build this $500 billion non-technology behemoth just by doing less stupid things over the long term, cares little about the pundits. The article seem to fail to point out that also in Q2 Berkshire was a net seller of much more and not just the airlines. On dividends, it will only come after the company has bought back the shares of those large block owners that are liquidating for tax reasons or other reasons.. I am guessing there is wave of those shareholders in the next few years, all of which have similar age.
fareastwarriors Posted October 8, 2020 Author Posted October 8, 2020 Warren Buffett turned down the chance to buy Whole Foods in 2017, CEO John Mackey says https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-declined-buy-whole-foods-john-mackey-2020-10-1029647692#
Jurgis Posted October 8, 2020 Posted October 8, 2020 Warren Buffett turned down the chance to buy Whole Foods in 2017, CEO John Mackey says https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-declined-buy-whole-foods-john-mackey-2020-10-1029647692# It might have been good decision for Buffett. I'm not so sure that standalone Whole Foods would be doing great today. Would depend on management clearly, but it probably would have been a tough slog.
fareastwarriors Posted October 11, 2020 Author Posted October 11, 2020 Warren Buffett bought Microsoft stock after meeting Bill Gates and made a $37 billion acquisition thanks to a chance encounter. Here are his 10 best quotes from an interview in a new book. https://markets.businessinsider.com/news/stocks/warren-buffett-bob-woodward-microsoft-bill-gates-37-billion-deal-2020-10-1029667401
ValueMaven Posted October 13, 2020 Posted October 13, 2020 Berk still getting little love. Rails booming, APPL all-time high again (or near it)...insurance extremely profitable - although GEICO is giving money back to customers. Buying back stock, some pipeline deals etc. Very interested to see next Q's earnings.
alpha Posted October 20, 2020 Posted October 20, 2020 Iscar Turkey settlement: https://home.treasury.gov/system/files/126/20201020_berkshire.pdf
gfp Posted October 24, 2020 Posted October 24, 2020 Berkshire pulled out of underwriting this Covid-19 college athletics insurance product at the very last minute, citing 'reputational risks' and compliance concerns - according to the broker marketing the policies to college athletic departments. Berkley ended up writing it. https://www.espn.com/college-football/story/_/id/30170060/insurance-broker-offers-covid-19-health-coverage-college-football the BRK subsidiary - https://wellfleetinsurance.com
CassiusKing1 Posted October 28, 2020 Posted October 28, 2020 Iscar Turkey settlement: https://home.treasury.gov/system/files/126/20201020_berkshire.pdf Is Iscar kicked to the curb by WEB in the next quarter?
longterminvestor Posted October 29, 2020 Posted October 29, 2020 what amazes me is BERK got a pass from CNBC/news outlets. Clinton sends a few emails and its a feeding frenzy, BERK negotiates with Iranian business and you dont hear a sound. I feel like I am back in High School when the teachers pet gets away with sending spit balls to the chalk board and when teacher questions class, everyone looked at me (haha). Seriously though, I don't know implications of this settlement and from limited research OFAC is willing to allow trade with Iran - you just need permission. Small blemish on the record of a great company however not the end of the world. The operating sub was out of Turkey so doubt the sales guy doing the deal cared about trade sanctions, probably just wanted his commission. Act was self reported so that is a saving grace.
omagh Posted October 31, 2020 Posted October 31, 2020 what amazes me is BERK got a pass from CNBC/news outlets. Clinton sends a few emails and its a feeding frenzy, BERK negotiates with Iranian business and you dont hear a sound. I feel like I am back in High School when the teachers pet gets away with sending spit balls to the chalk board and when teacher questions class, everyone looked at me (haha). Seriously though, I don't know implications of this settlement and from limited research OFAC is willing to allow trade with Iran - you just need permission. Small blemish on the record of a great company however not the end of the world. The operating sub was out of Turkey so doubt the sales guy doing the deal cared about trade sanctions, probably just wanted his commission. Act was self reported so that is a saving grace. Importantly, Berkshire's reputation is still intact. With 400,000 employees, the odds of 1 of them doing something shady get pretty high to the point of certainty in any given year. Find it, stamp it out immediately and move on. Wells Fargo learned the hard way about letting shady practices fester.
alpha Posted November 23, 2020 Posted November 23, 2020 Anyone happen to have a transcript of the speech Buffett made at a recent Goldman Sachs event for small business?
gfp Posted November 23, 2020 Posted November 23, 2020 Anyone happen to have a transcript of the speech Buffett made at a recent Goldman Sachs event for small business? I don't think there is a video or transcript online yet. Closest I've seen are these articles with quotes that you have likely already seen if you are asking about a transcript. https://markets.businessinsider.com/news/stocks/warren-buffett-discussed-fed-small-business-ukeleles-goldman-sachs-event-2020-11-1029828697
John Hjorth Posted November 29, 2020 Posted November 29, 2020 Anybody else but me taking notice of the difference between the ending of this Press Release : ... Contact Investor Relations i[email protected] 402-978-5413 , and basically all others ending by : ... Contact Marc D. Hamburg 402-346-1400 ?
ValueMaven Posted November 29, 2020 Posted November 29, 2020 Anybody else but me taking notice of the difference between the ending of this Press Release : ... Contact Investor Relations i[email protected] 402-978-5413 , and basically all others ending by : ... Contact Marc D. Hamburg 402-346-1400 ? I think that is a very interesting point John. Might have to do with the International/Japanese time difference...or could mean something more. I dont know.
sleepydragon Posted November 29, 2020 Posted November 29, 2020 Anybody else but me taking notice of the difference between the ending of this Press Release : ... Contact Investor Relations i[email protected] 402-978-5413 , and basically all others ending by : ... Contact Marc D. Hamburg 402-346-1400 ? I think that is a very interesting point John. Might have to do with the International/Japanese time difference...or could mean something more. I dont know. Maybe written by someone in the Japanese office
John Hjorth Posted November 29, 2020 Posted November 29, 2020 Anybody else but me taking notice of the difference between the ending of this Press Release : ... Contact Investor Relations i[email protected] 402-978-5413 , and basically all others ending by : ... Contact Marc D. Hamburg 402-346-1400 ? I think that is a very interesting point John. Might have to do with the International/Japanese time difference...or could mean something more. I dont know. Maybe written by someone in the Japanese office Please don't take my questions here too seriously ... - I mean, what will be in that particular e-mail inbox will be something similar to this : 親愛なるバフェットさん、 最終的にどの会社を最初に購入しますか？ -And rest assured, I think too Mr. Hamburg is perhaps too old for this kind of stuff. [in the end : Not in any way our problem ... The advantage of being a global conglomerate investor!]
omagh Posted November 29, 2020 Posted November 29, 2020 Anybody else but me taking notice of the difference between the ending of this Press Release : ... Contact Investor Relations i[email protected] 402-978-5413 , and basically all others ending by : ... Contact Marc D. Hamburg 402-346-1400 ? August 31st on that press release. So Marc Hamburg was likely on vacation and a general number was provided. I wouldn't read too much into it.
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