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fareastwarriors

By fareastwarriors
in Berkshire Hathaway

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Krapdivad
Krapdivad

There was a pre-Berkshire meeting by Yahoo Finance today with Laurence Cunningham, Robert Hagstrom, Carol Loomis, and Tom Gayner.    Took a few notes if anyone was interested:   La

fareastwarriors
fareastwarriors

$tsm 👀     

nwoodman
nwoodman

Fascinating purchase by Berkshire.  A couple of thoughts.  1. Is this a cheap way to ride the Apple juggernaut?  2. Is this more Munger than Buffett?  Charlie being interviewed tomorrow on CNBC - coin

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DooDiligence Grand Master

DooDiligence

Posted
Posted
39 minutes ago, ValueMaven said:

Sizable buy for Greg!  In the A shares as well.  Great purchase price!!

 

I'm up to 16.1% BRK.B with half in an IRA (at $195) and half in taxable (at $274).

Seems like a good backstop and I'll likely be adding more in taxable.

Dynamic Enthusiast

Dynamic

Posted
Posted

Looks like Greg's Trust now owns 173 BRK.A shares, 5 shares already, plus 168 shares of new purchases shown in the four Form 4 fillings of October 3, 2022, purchased for around $405,000 to $408,000 per share. Total market value would be about $70 million.

 

This strikes me as a very sound price compared to Intrinsic value. ($270-272 is the equivalent price range for BRK.B shares)

 

I think that price range gives prospects for solid compounding in the medium to long term (say inflation plus 6-9% cagr) plus a likely short term re-rating boost that might well add as much as 15% one-off (not compound) boost to the total returns after the next year or two if more typical market valuations then prevail for Berkshire and it's common stock holdings.

 

If prices then happen to be somewhat depressed at that future time, like today, I'd still expect most of the 6-9% cagr real growth rate to be reflected in the return, and only an extreme low valuation such as in May 2020 is likely to result in the position being underwater at prevailing market prices.

Xerxes Grand Master

Xerxes

Posted
Posted
13 hours ago, ValueMaven said:

Sizable buy for Greg!  In the A shares as well.  Great purchase price!!

 

Is having the A-share for him is of any major significance ,,, as oppose to the equivalent B-share ?

DooDiligence Grand Master

DooDiligence

Posted
Posted
2 minutes ago, Dynamic said:

To me it seems there was plenty of liquidity to buy all he wanted in Class A and there's the modest bonus of greater voting rights.

 

Also seems like a demonstration of commitment.

crs223 Experienced

crs223

Posted
Posted
1 hour ago, Xerxes said:

 

Is having the A-share for him is of any major significance ,,, as oppose to the equivalent B-share ?

 

I work for an employee-owned company and I love my job.  A major part of my satisfaction is being an owner, with voting rights.

 

If the company wants me to do something dumb (sexual harassment training, unclog toilet, etc) I actually want to help.  I’ll never work for a company where I’m not an owner.

 

I cannot imagine what it’s like being Greg, but my guess is the even for him life is better when you’re a voting owner.

maxthetrade Community Regular

maxthetrade

Posted
Posted

KBW believes that Berkshire Hathaway will face the highest level of losses from Hurricane Ian at $1.40 billion, representing 0.2% of the company’s $469.65 billion of common equity.

Behind this was Chubb, which could face $1.02 billion of losses, according to KBW, or 1.6% of its $51.67 billion of common equity.

The third-highest level of losses is faced by Arch Capital Group at $732 million, representing 5.2% of common equity, followed by Progressive with $625 million, or 3.1% of common equity, and Allstate at $578 million, or 2.5%.

Companies that could see the biggest relative impact to their finances include RenaissanceRe, whose $500 million loss – as calculated by KBW – would represent a huge 9.0% of its common equity.

Other firms that could be reporting heavily impacted Q3 results include The Hanover, whose assumed $200 million loss would represent 6.1% of its common equity, and Everest Re, whose $563 million loss would represent 5.6% of its common equity.

glider3834 Mentor

glider3834

Posted
Posted
3 hours ago, maxthetrade said:

KBW believes that Berkshire Hathaway will face the highest level of losses from Hurricane Ian at $1.40 billion, representing 0.2% of the company’s $469.65 billion of common equity.

Behind this was Chubb, which could face $1.02 billion of losses, according to KBW, or 1.6% of its $51.67 billion of common equity.

The third-highest level of losses is faced by Arch Capital Group at $732 million, representing 5.2% of common equity, followed by Progressive with $625 million, or 3.1% of common equity, and Allstate at $578 million, or 2.5%.

Companies that could see the biggest relative impact to their finances include RenaissanceRe, whose $500 million loss – as calculated by KBW – would represent a huge 9.0% of its common equity.

Other firms that could be reporting heavily impacted Q3 results include The Hanover, whose assumed $200 million loss would represent 6.1% of its common equity, and Everest Re, whose $563 million loss would represent 5.6% of its common equity.

 

also from the same article

 

'Nevertheless, analysts concluded that losses will almost certainly sustain “very significant” property-catastrophe reinsurance rate increases in 2023, despite being subject to change.'

 

https://www.reinsurancene.ws/hurricane-ian-a-very-expensive-earnings-event-says-kbw/

Dynamic Enthusiast

Dynamic

Posted
Posted

A new 8-K was released by Berkshire stating in essence that the Board will be seeking a new independent director to replace David Gottesman.

 

On September 28, 2022, David S. Gottesman, a Berkshire director died. Prior to Mr. Gottesman’s death, the Board of Directors was comprised of eight independent directors and seven non-independent directors. Mr. Gottesman was an independent director and as a result of Mr. Gottesman’s death, the Board of Directors is not currently comprised of a majority of independent directors as required by Section 303A.01 of the NYSE Listed Company Manual.

 

On September 30, 2022, as required by Section 303A.12 of the NYSE Listed Company Manual, Berkshire Hathaway submitted an interim written affirmation to the NYSE as a notice of noncompliance with Section 303A.01 of the NYSE Listed Company Manual. On October 3, 2022, the Company received an official notice of noncompliance from the NYSE. The NYSE notice stated that the Company will need to correct the noncompliance as promptly as practicable. It is the intention of the Berkshire Hathaway Board of Directors to appoint a new independent director as soon as practicable.

John Hjorth Grand Master

John Hjorth

Posted
Posted
On 10/5/2022 at 8:08 AM, Dynamic said:

A new 8-K was released by Berkshire stating in essence that the Board will be seeking a new independent director to replace David Gottesman.

 

On September 28, 2022, David S. Gottesman, a Berkshire director died. Prior to Mr. Gottesman’s death, the Board of Directors was comprised of eight independent directors and seven non-independent directors. Mr. Gottesman was an independent director and as a result of Mr. Gottesman’s death, the Board of Directors is not currently comprised of a majority of independent directors as required by Section 303A.01 of the NYSE Listed Company Manual.

 

On September 30, 2022, as required by Section 303A.12 of the NYSE Listed Company Manual, Berkshire Hathaway submitted an interim written affirmation to the NYSE as a notice of noncompliance with Section 303A.01 of the NYSE Listed Company Manual. On October 3, 2022, the Company received an official notice of noncompliance from the NYSE. The NYSE notice stated that the Company will need to correct the noncompliance as promptly as practicable. It is the intention of the Berkshire Hathaway Board of Directors to appoint a new independent director as soon as practicable.

 

This is lack of due diligence by the board - plain and simple.

maxthetrade Community Regular

maxthetrade

Posted
Posted

Progressive Corp. said Thursday it recorded property losses and expenses of $1.4 billion in September alone from multiple U.S. landfalls of Hurricane Ian.

Cautioning that the loss figure could change materially as more claims are submitted, the automobile and home insurer said in a regulatory filing that it incurred $760 million of catastrophe losses in September, after the effects of reinsurance.

 

Will be interesting to see how Geico has fared.

maxthetrade Community Regular

maxthetrade

Posted
Posted
28 minutes ago, ValueMaven said:

Brilliant acquisition for Berkshire ... Y fits in very nicely inside the Insurance business 

 

I agree, it's an excellent aquisition not only financially but I like that Brandon is rejoining Berkshire.

jbwent63 Enthusiast

jbwent63

Posted
Posted

I agree this is a good acquisition of both assets and human capital. Do we think Brandon will eventually replace Ajit in the "envelope" or as one of the two co-CEO's (with Abel)? Will also be interesting to see how the investments of Allegheny are changed once they are under BH control. Will they be able to move to more equity vs fixed income (allowed by regulators)? Any synergies with the operating companies in Allegheny Capital?

dealraker Veteran

dealraker

Posted
Posted

I've been an Allegany shareholder for a long time.  I think, but am not sure, that they have a "Markel Ventures" type thing going on also.  I think this part of their business is about half (based on revenue) the size of the insurance division.

 

Investments are about double equity too, so some focus and maybe a change or two will come from the investment portfolio.  Or Buffett may like what they have and are doing, I don't know.

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