Buffett/Berkshire - general news

[Masterofnone]

Andrew Bary does a good job covering Berkshire. He understands all the moving parts:

https://www.marketwatch.com/articles/berkshire-hathaway-earnings-stock-price-d3c03cae?mod=mw_quote_news

[Parsad]

5 hours ago, Luca said:

Munger just sits here as a tourist attraction with people trying to get funny pics with him lol, we can see the tired look on his face...:D

 

 

For better or worse...he is immensely kind and gracious to the cult followers.  If they could only do the same!  Cheers!

[Masterofnone]

Berkshire is still cheap. Wildly simplified, take Q1 operating earnings as the run rate for the year, back out cash and equities and the PE is under 12. They have some pretty good companies under the umbrella.

[Jaygo]

Yes there is good value but to be fair. The equities have tax considerations and much of that cash is now generating a portion of the stated earnings.

[Parsad]

I'm certain that Greg Abel is very capable, but after watching today's Q&A (morning session), I sure wish Ajit was 20 years younger. 

 

He would be exceptional and the perfect successor to Buffett...in intellect, skill, ethics, ability, leadership and doing these AGM's for the next 40 years!  Cheers!

[Masterofnone]

43 minutes ago, Jaygo said:

Yes there is good value but to be fair. The equities have tax considerations and much of that cash is now generating a portion of the stated earnings.

(As stated- wildly simplified) Yes cash is contributing to earnings but no credit for "look through" or equity appreciation which over time is likely greater.

Edited May 6, 2023 by Masterofnone

[Ulti]

https://www.berkshirehathaway.com/meet01/visguide2023.pdf

Didnt know I could shop from home all week...or am i misreading?

 

[backtothebeach]

Great morning session IMO. Warren casually citing AAPL's number of shares outstanding off the top of his head...he's just on another level.

[John Hjorth]

1 hour ago, Parsad said:

I'm certain that Greg Abel is very capable, but after watching today's Q&A (morning session), I sure wish Ajit was 20 years younger. 

 

He would be exceptional and the perfect successor to Buffett...in intellect, skill, ethics, ability, leadership and doing these AGM's for the next 40 years!  Cheers!

 

Listening to and viewing the Berkshire AGM today online is is just an awesome experience! The Chairman and the first chairman seem to be in their sweet spot, full of energy, and sharp as ever! The two other and newest chairmen blending in at times - depending on questions asked - gives the whole AGM a more specific dimension on quite some issues, that matters a lot for the future! -It's just great!

[gfp]

Pretty funny that Warren called out this exact auction and said Berkshire bought $3 Billion of this 5.9% t-bill

 

On 5/4/2023 at 5:36 PM, gfp said:

Look at those rates!  Berkshire gonna get paid on that cash.  (I'm sure this is related to fears of possible delay in getting your money if the government defaults for a few days...  57-day bill went at 5.5%)

 

 

 

[John Hjorth]

17 minutes ago, gfp said:

Pretty funny that Warren called out this exact auction and said Berkshire bought $3 Billion of this 5.9% t-bill

 

 

 

Agreed @gfp,

 

I'm pretty sure he follows just about everything that may be going on with US T-bills, and that's certainly for a reason of being a material buyer.

[John Hjorth]

Finally, there was a question about the american banking system, US regional banking in particular, and Mr. Buffett started  - before saying anything - by flipping table name tags on the podium like this [  ]  :

 

[cubsfan]

2 hours ago, Parsad said:

I'm certain that Greg Abel is very capable, but after watching today's Q&A (morning session), I sure wish Ajit was 20 years younger. 

 

He would be exceptional and the perfect successor to Buffett...in intellect, skill, ethics, ability, leadership and doing these AGM's for the next 40 years!  Cheers!

yeah, great comment- sitting here I’m really enjoying Ajit when he talks. Very specific and no fluff or platitudes. He’s great.

[Gamecock-YT]

quit propping your kids up to ask questions. it's cute the first time, not so the 7th time

[John Hjorth]

6 minutes ago, Gamecock-YT said:

quit propping your kids up to ask questions. it's cute the first time, not so the 7th time

 

Yes, conspicuous and in a way appalling.

[Luke]

23 minutes ago, Gamecock-YT said:

quit propping your kids up to ask questions. it's cute the first time, not so the 7th time

Absolutely embarrassed for the girl that couldnt even spell out the names of the guys sitting there...common...besides that i am very happy to see both of them sharp and cheerful

Edited May 6, 2023 by Luca

[gfp]

One important bit of breaking news from the meeting was that Warren came right out and said he would not be bidding for control of Occidental.  He may buy more and obviously still has the warrants to exercise but he isn't going to buy Occidental entirely.  Someone else might eventually, of course.

 

The other big news was that Jan. 1st renewals were disappointing for Ajit but that they got lucky when April 1st came around and prices had zoomed up and they quickly wrote $15 Billion of Florida Cat risk where they can lose a maximum of $15B this year and could make $7 Billion if no major storm hits Florida.

[Parsad]

Ron Olson at halftime was talking about Greg Abel.  Literally said that Greg grew Mid-American from a tiny company to what it is today.  No mention at all of Sokol or anything.  When Buffett cuts you off, the board and everyone else cuts you off too! 

 

Tragic and rather cut-throat...the Salomon threat to employees was definitely not pretense, but a precursor if you hurt Berkshire/Buffett's reputation!  Cheers!

[dealraker]

I had to leave the house for a couple hours today.  I'm assuming there was no specific discussion about Bank of America.  Is this correct?  

[gfp]

6 minutes ago, dealraker said:

I had to leave the house for a couple hours today.  I'm assuming there was no specific discussion about Bank of America.  Is this correct?  

The specific mention was Warren reminding us that it was Warren who asked for the deal to buy into BAC on those special terms and he felt honor bound essentially to stay in it. And he likes the management. I’m sure he doesn’t love the securities book but this too shall pass

[dealraker]

2 minutes ago, gfp said:

The specific mention was Warren reminding us that it was Warren who asked for the deal to buy into BAC on those special terms and he felt honor bound essentially to stay in it. And he likes the management. I’m sure he doesn’t love the securities book but this too shall pass

Yep, thank gfp.

[fareastwarriors]

3 hours ago, John Hjorth said:

Finally, there was a question about the american banking system, US regional banking in particular, and Mr. Buffett started  - before saying anything - by flipping table name tags on the podium like this [  ]  :

 

 

legendary

[Parsad]

 

2 minutes ago, gfp said:

The specific mention was Warren reminding us that it was Warren who asked for the deal to buy into BAC on those special terms and he felt honor bound essentially to stay in it. And he likes the management. I’m sure he doesn’t love the securities book but this too shall pass

 

They are essentially out of banks other than BAC, which as GFP said was because they originated that deal and want to remain a reliable partner.  Buffett said there could be 3rd or 4th levels of counterparty risk that lead to unpredictable things and the average U.S. citizen doesn't understand banking or how bank deposits are insured.  I suspect they expect things to get worse before they get better.

 

On another note, there was a young 13 year old girl who asked a question about US debt and the U.S. dollar.  She was extremely poised and eloquent.  Maybe Berkshire should hire her or the FDIC should put her in charge of some banks! 

 

Cheers!

[Parsad]

Just now, Parsad said:

 

 

They are essentially out of banks other than BAC, which as GFP said was because they originated that deal and want to remain a reliable partner.  Buffett said there could be 3rd or 4th levels of counterparty risk that lead to unpredictable things and the average U.S. citizen doesn't understand banking or how bank deposits are insured.  I suspect they expect things to get worse before they get better.

 

On another note, there was a young 13 year old girl who asked a question about US debt and the U.S. dollar.  She was extremely poised and eloquent.  Maybe Berkshire should hire her or the FDIC should put her in charge of some banks! 

 

Cheers!

 

A couple of months ago, I sold out of BAC after holding it from 2009.  I just couldn't predict the different outlier events that could happen and who was holding what bag.  If BRK didn't originate that deal, I doubt Buffett would have held on to BAC...even as terrific a CEO Brian Moynihan is. 

 

The industry does well when things are good, but are probably the worst businesses to own when things turn bad.  With their leverage, and the stupid things bankers will do, they may actually be one of the riskiest areas to invest long-term, because they will get hit at some point from dumb behavior.  And even if you avoided the stupid behaviors of your peers, you will suffer collateral damage for some time from fear.

 

Cheers!

[dealraker]

The comment that most entertained me was when Buffett referring to commercial real estate quoted someone from the past saying, "It is worth what someone will lend on it without the borrower putting his name on it (the loan)."  I couldn't help but think about my favorite punching bag Brookfield, how much more fragile their relayed story is than some believe.