Buffett/Berkshire - general news

[ValueMaven]

Added a touch to my position at $271.50

[CassiusKing1]

Did the same yesterday, but at $272.

[gfp]

Sonic Automotive just announced this large acquisition - I wonder if Berkshire Hathaway Automotive group even got a look at the deal.  I'm surprised they haven't done more bolt-on deals through that group.  Maybe the Texas situation with Berkshire owning Forest River makes it difficult for BHA to bid on dealer groups with a presence in Texas.

 

https://www.businesswire.com/news/home/20210922005256/en/Sonic-Automotive-Adds-3.2-Billion-in-Annualized-Revenues-with-Acquisition-of-RFJ-Auto-Partners-a-Top-15-U.S.-Dealer-Group

[UK]

https://www.wsj.com/articles/joe-biden-undo-rail-success-amtrak-canadian-pacific-deregulation-competition-11632511941

 

"One thing remains unchanged: Railroads and their biggest customers (such as coal shippers, agriculture processors and chemical plants) are condemned to live in angry tension because neither can exist without the other. Their ancient fights were recently reprised at length in the Washington Monthly by think tanker Phillip Longman, who portrays today’s freight railroads as abusive monopolists. These companies, he says, are operated by modern-day “robber barons” who perversely want to shrink the industry “to the point of non-viability” for “short-term economic gain” (this will be news to one of those robber barons, Warren Buffett, who praises his Burlington Northern Santa Fe as a source of long-term profits). When this argument doesn’t get him far, Mr. Longman rolls out an alternate clincher: climate change. Because railroads use less fuel per ton-mile than trucks, railroads should be forced to change their practices and pricing to subsidize more freight to switch from trucks to rail. The blessed result will be a “cooler planet” via “huge reductions in carbon emissions.” Echoing this argument has been Mr. Biden’s newly installed head of the Surface Transportation Board, Martin Oberman. In a speech he claimed that “123 million tons of global warming CO2 has been pumped into our atmosphere just because the railroads chose not to maintain their market share as compared to trucks (emphasis added).” The wording is slippery. Railroads and their customers both choose to maximize their efficiency and profitability. Messrs. Oberman and Longman also fail to mention that any emissions reductions would be infinitesimal in relation to the atmosphere."

[nwoodman]

Very sad news.  Not my area of expertise, but seems strange to have detailed on a straight section of track.  Perhaps a mechanical fault rather than a structural issues with the rail itself?

 

At Least 3 Killed In Amtrak Derailment

https://www.npr.org/2021/09/25/1040734747/amtrak-train-derails-montana-injured

 

Five Amtrak cars derailed around 3:55 p.m. Mountain Daylight Time and no other trains or equipment were involved, Weiss said. The train was traveling on a BNSF Railroad main track at the time, he said.

Photos posted to social media showed several cars on their sides. Passengers were standing alongside the tracks, some carrying luggage.

The images showed sunny skies, and it appeared the accident occurred along a straight section of tracks.

[fareastwarriors]

Not sure where to put this one but dam Munger is  effing legendary.

 

Quote

“It’d be nice if I were Mother Teresa and did something I didn’t like doing, because I’m a noble soul,” Munger said. “But my life is organized so that time after time, what works for my pocketbook works for every moral teaching that I’ve been taught.”

 

Billionaire Charlie Munger’s Timely Apartment Bet Began With Hebrew Bible

 

Billionaire partnered with friend on rentals before pandemic

Soaring rents have boosted value of multifamily buildings

 

https://www.bloomberg.com/news/articles/2021-10-01/charlie-munger-s-timely-apartment-bet-began-with-hebrew-bible?srnd=premium

[Spekulatius]

On 10/1/2021 at 2:28 PM, fareastwarriors said:

Not sure where to put this one but dam Munger is  effing legendary.

 

 

Billionaire Charlie Munger’s Timely Apartment Bet Began With Hebrew Bible

 

Billionaire partnered with friend on rentals before pandemic

Soaring rents have boosted value of multifamily buildings

 

https://www.bloomberg.com/news/articles/2021-10-01/charlie-munger-s-timely-apartment-bet-began-with-hebrew-bible?srnd=premium

LOL. Does he “pray” to Adam Smith invisible hand every night? 

[kab60]

On 9/23/2021 at 4:37 PM, gfp said:

Sonic Automotive just announced this large acquisition - I wonder if Berkshire Hathaway Automotive group even got a look at the deal.  I'm surprised they haven't done more bolt-on deals through that group.  Maybe the Texas situation with Berkshire owning Forest River makes it difficult for BHA to bid on dealer groups with a presence in Texas.

 

https://www.businesswire.com/news/home/20210922005256/en/Sonic-Automotive-Adds-3.2-Billion-in-Annualized-Revenues-with-Acquisition-of-RFJ-Auto-Partners-a-Top-15-U.S.-Dealer-Group

 

Asbury Automotive just did a 3,2B acquisition the other day as well.

 

And it seems Van Tuyl is back in the game again - buying dealerships on his own after leaving Berkshire Hathaway... (https://samacharcentral.com/larry-van-tuyl-back-in-car-dealership-game/)

 

 

[formthirteen]

This was a pretty interesting read:

https://awilkinson.medium.com/the-berkshire-hathaway-of-the-internet-391a8ee83db

 

I'm sure he has "better" lawyers now than in 1967:

[Spooky]

5 hours ago, formthirteen said:

This was a pretty interesting read:

https://awilkinson.medium.com/the-berkshire-hathaway-of-the-internet-391a8ee83db

 

I'm sure he has "better" lawyers now than in 1967:

 

This letter is interesting because it also incorporates all the representations / terms of the tender offer into the letter. Can't really say he does an acquisition just using a two page letter based on this.

[adesigar]

Susan Buffett and Christopher Davis added to the board of directors 

[John Hjorth]

Berkshire Hathaway Inc. - A family business with a market value of USD 650 B.

 

Huum-ho.

[Munger_Disciple]

5 minutes ago, adesigar said:

Susan Buffett and Christopher Davis added to the board of directors 

 

Underwhelmed

[maxthetrade]

10 minutes ago, Munger_Disciple said:

Underwhelmed

 

I agree, especially with regards to his daughter. I would have prefrerred Tom Russo over Mr. Davis. 

[John Hjorth]

Just now, Munger_Disciple said:

 

Underwhelmed

 

I've never succeseeded to read "The Snowball" to its end. From the fraction of what I've read of that book - before throwing it into a corner - where it still is right now - I remember reading something about the renovation of a kitchen, where "Dad" was supposed to "lift" the "plans" financially.

 

"Dad"s answer - according to the book - was: "Talk with your bank about it", or something in that line.

 

Disclosure: I'm biased here.

[StubbleJumper]

22 minutes ago, adesigar said:

Susan Buffett and Christopher Davis added to the board of directors 

 

Another case of a marginally competent family member being given a position on the board.  Should we now call Buffett the Prem Watsa of the south?  

 

SJ

[Munger_Disciple]

2 minutes ago, StubbleJumper said:

 

Another case of a marginally competent family member being given a position on the board.  Should we now call Buffett the Prem Watsa of the south?  

 

SJ

 

 

 

Chris Davis is a decent guy but I am not blown away by his appointment either. Middle of the road large cap fund manager who overdosed on financials just before the GFC. 

[maxthetrade]

8 minutes ago, StubbleJumper said:

Another case of a marginally competent family member being given a position on the board.  Should we now call Buffett the Prem Watsa of the south?  

 

Have you watched 'Succession'

[John Hjorth]

9 minutes ago, StubbleJumper said:

 

Another case of a marginally competent family member being given a position on the board.  Should we now call Buffett the Prem Watsa of the south?  

 

SJ

 SJ,

 

You're killing me. If I could, I would quote your post into the "Jokes"-topic in General Discussion forum. Unfortunately, I'm still not able to do so with the new CoBF setup. Rest assured, I'll find the way to do so along the way. I'm not a "quittor".

[ValueMaven]

On the positive side - Davis is a huge fan of buybacks  with regards to Berkshire.  

Sussie is ridiculous and poor choice

[Munger_Disciple]

Some inconsequential news: 

 

https://www.bloomberg.com/news/articles/2021-10-22/buffett-brings-generali-close-to-completing-cattolica-purchase

[RadMan24]

I believe those appointments are more to do with maintaining culture at Berkshire along with further diversity of thought. To say Sussie is ridiculous and poor choice is astonishing considering the fees directors receive on other boards that are habitual yes men. 

[StubbleJumper]

19 minutes ago, RadMan24 said:

I believe those appointments are more to do with maintaining culture at Berkshire along with further diversity of thought. To say Sussie is ridiculous and poor choice is astonishing considering the fees directors receive on other boards that are habitual yes men. 

 

Just for the record, this is the résumé of Susie Buffett:  https://en.wikipedia.org/wiki/Susan_Alice_Buffett

 

Does that look like the ideal background of someone who has been appointed to guide the management of a $650 billion company?  I'd say that she makes Christine McLean and Ben Watsa look like rock stars....

 

 

SJ

[RadMan24]

3 minutes ago, StubbleJumper said:

 

Just for the record, this is the résumé of Susie Buffett:  https://en.wikipedia.org/wiki/Susan_Alice_Buffett

 

Does that look like the ideal background of someone who has been appointed to guide the management of a $650 billion company?  I'd say that she makes Christine McLean and Ben Watsa look like rock stars....

 

 

SJ

Do you run a philanthropy foundation? Curious on what real world knowledge you have to make that statement. Moreover, again -- ensuring Berkshire's culture is there post-Warren is not important to you? 

[StubbleJumper]

58 minutes ago, RadMan24 said:

Do you run a philanthropy foundation? Curious on what real world knowledge you have to make that statement. Moreover, again -- ensuring Berkshire's culture is there post-Warren is not important to you? 

 

No, I have never had my father donate $1 billion so I could be hand-picked to run my own philanthropy foundation.  My guess is that somebody who climbed through the ranks of the non-profit sector, with successive jobs of progressively higher responsibility, to eventually be competitively selected to be the boss of a $1 billion foundation would be a pretty talented person.  But, that's not how Susie was selected for the job, was it?

 

The culture of BRK will probably last one or two CEOs post-Buffett and then it will likely revert to a typical organization with an over-confident, self-interested management cadré.  Appointing a 68 year-old family member to the board is unlikely to forestall that process.

 

 

SJ