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Buffett/Berkshire - general news


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On 10/15/2024 at 10:27 AM, Xerxes said:

There was a short CNBC interview with BRK board member back at the AGM, where she made it clear that there will be no regular dividends, but perhaps one day special dividend. 

Lots of talented investors, but how to tell them from lucky coin-flippers (per WEB intro to Ben Graham's Intelligent Investor)?  If you don't know -- and life is uncertain -- I like the discipline of money manager given X capital to work with, "forced" to return about 4 pct of capital to investors.  Can be a variety of ways - special or regular dividends, repurchases to reduce number of shares, spinoffs, etc.  But having to make concrete return annually reduces a bit of the agent-ego risk.  If business is well managed but context is difficult, and cannot return 4 pct of capital annually, well then, let the business shrink.  One can play with the numbers and spreadsheets.  It's the discipline that matters.

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23 hours ago, Jaygo said:

Do you think anyone at HQ is looking at ACME Brink to ensure its being run in the best way possible….Managers must be managed and the bigger the wider the assortment of businesses the tougher this becomes.

Buffett gets monthly numbers on all the businesses.

Buffett and Munger believe that have having honest and able managers and getting out of their way (bureaucracy is like a cancer) is the reason that Berkshire works so well.

 

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https://www.bloomberg.com/news/articles/2024-10-23/warren-buffett-says-he-won-t-endorse-any-political-candidates

 

Warren Buffett Says He Won’t Endorse Any Political Candidates

 

Warren Buffett said he won’t back any political candidates, two weeks before US citizens head to the polls to elect the country’s next president. The 94-year-old billionaire’s position was laid out in a statement posted on the website of his conglomerate Berkshire Hathaway Inc.

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From the BRK website

 

https://berkshirehathaway.com/webfraud.pdf

 

Fraudulent Claims Regarding Mr. Buffett’s Endorsements of Investment Products and Political Candidates

 

In light of the increased usage of social media, there have been numerous fraudulent claims regarding Mr. Buffett’s endorsement of investment products as well as his endorsement and support of political candidates. Mr. Buffett does not currently and will not prospectively endorse investment products or endorse and support political candidates.

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3 hours ago, Hektor said:

From the BRK website

 

https://berkshirehathaway.com/webfraud.pdf

 

Fraudulent Claims Regarding Mr. Buffett’s Endorsements of Investment Products and Political Candidates

 

In light of the increased usage of social media, there have been numerous fraudulent claims regarding Mr. Buffett’s endorsement of investment products as well as his endorsement and support of political candidates. Mr. Buffett does not currently and will not prospectively endorse investment products or endorse and support political candidates.

Good decision. Crazy the political difference between Hillary and Kamala in just 8 years. But even if that is not the reason, good decision to keep your mouth shut. 

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Jim Grant says ‘the greatest equity investor’ — Warren Buffett — is trying to warn you about US stocks and is supposedly choosing this 1 asset class over equities. Should you follow suit?

 

https://www.msn.com/en-us/money/savingandinvesting/jim-grant-says-the-greatest-equity-investor-warren-buffett-is-trying-to-warn-you-about-us-stocks-and-is-supposedly-choosing-this-1-asset-class-over-equities-should-you-follow-suit/ar-AA1t7Sx8?ocid=msedgntp&pc=LCTS&cvid=f28e9d8bad8040e39d30bb19615f5ab1&ei=12

 

 

Cheers!

Edited by Charlie
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1 hour ago, Charlie said:

Jim Grant says ‘the greatest equity investor’ — Warren Buffett — is trying to warn you about US stocks and is supposedly choosing this 1 asset class over equities. Should you follow suit?

 

https://www.msn.com/en-us/money/savingandinvesting/jim-grant-says-the-greatest-equity-investor-warren-buffett-is-trying-to-warn-you-about-us-stocks-and-is-supposedly-choosing-this-1-asset-class-over-equities-should-you-follow-suit/ar-AA1t7Sx8?ocid=msedgntp&pc=LCTS&cvid=f28e9d8bad8040e39d30bb19615f5ab1&ei=12

 

 

Cheers!

 

8 minutes ago, rogermunibond said:

Treasury bills

 

@Charlie & @rogermunibond,

 

Personally, I think Jim Grant in the above doesn't really hit the disc with this assessment.

 

The calculation for Berkshire is just so different on 'riding and rolling US Treasury Bills' than for almost everyone else, because  - no matter what your view may be on it - a material part of those T-Bills can be argued to be financed by insurance float. Insurance float held by the undisputed world champion in generating, holding and maintaining insurance float.

 

It is a low margin business, yes, so it requires scale.

 

And scale there is, indeed.

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8 minutes ago, John Hjorth said:

 

 

@Charlie & @rogermunibond,

 

Personally, I think Jim Grant in the above doesn't really hit the disc with this assessment.

 

The calculation for Berkshire is just so different on 'riding and rolling US Treasury Bills' than for almost everyone else, because  - no matter what your view may be on it - a material part of those T-Bills can be argued to be financed by insurance float. Insurance float held by the undisputed world champion in generating, holding and maintaining insurance float.

 

It is a low margin business, yes, so it requires scale.

 

And scale there is, indeed.

Has anyone made money following Jim Grant?  

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Buffett had said on record that he has no interest in Occidental.
 

Yet given his view on inflation and the significance amount of liquidation of Apple and Bank of America positions, the pausing of the passive weekly purchases of Occidental, it is possible that Occidental may indeed the target.  
 

The M&A activity should be picking up across the board with the new regime in Washington.
 

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1 hour ago, Xerxes said:

Buffett had said on record that he has no interest in Occidental.
 

Yet given his view on inflation and the significance amount of liquidation of Apple and Bank of America positions, the pausing of the passive weekly purchases of Occidental, it is possible that Occidental may indeed the target.  
 

The M&A activity should be picking up across the board with the new regime in Washington.
 


if he has to get regulatory approval to buy up to 50% of shares, would be he allowed to buy the whole company? Also, if he want to buy the whole company, won’t he be buying more now? 

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1 hour ago, sleepydragon said:


if he has to get regulatory approval to buy up to 50% of shares, would be he allowed to buy the whole company? Also, if he want to buy the whole company, won’t he be buying more now? 


Any offer for the remaining 70% would have always been subject to regulatory approval. It is no different than had he owned none of it, and than made an offer. Like he did with Allenghany.  
 

 

Berkshire owns 30% or so; enough to have influence to block any major making a move toward it, for 3 years now. Maybe that was the reason for the passive stake. 

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3 hours ago, Xerxes said:

Berkshire owns 30% or so; enough to have influence to block any major making a move toward it, for 3 years now. Maybe that was the reason for the passive stake. 


it does scream classic Buffett to strike some deal where OXY pays him a percentage to accumulate enough stock to block any takeovers. 

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