Buffett/Berkshire - general news

[Pellom]

Greg is a phenomenal operator, and I will assume those skills translate to large acquisitions. He'll know what's worth buying and what isn't.

 

What I'm most curious about is how big Ted and Todd's piece of the equity portfolio will be allowed to grow and how they manage it going forward. They are obviously great investors, but far more active than Warren and Charlie. It'll be interesting to see whether or not Greg can or will slow them down. 

[Hektor]

I feel Berkshire will invest more in India under Greg.

[73 Reds]

21 minutes ago, John Hjorth said:

 

Count me in, @73 Reds,

 

Deciding for ourselves what income to declare and get taxed on, and what to defer [for me, only in taxable accounts] is a great privilege.

I've long wished that Berkshire would consider forming a division focused on angel investing and venture capital.  Who knows what collaboration with some of the great minds around the World might ultimately generate.

[John Hjorth]

36 minutes ago, 73 Reds said:

I've long wished that Berkshire would consider forming a division focused on angel investing and venture capital.  Who knows what collaboration with some of the great minds around the World might ultimately generate.

 

I remember this transformative action at Berkshire [here, part one - of the whole thing] being discussed here on CofB&F as long ago as since I joined CofB&F, now more than 12 years ago, where I was a like a prodigral child, that had got away from mothers shopping cart in Costco, because of the child only gravitity passing the area, where all the toys are.

 

I've long ago decided to mentally approach this change when it would happen, in a positive way, a priori considering it an opportunity, that needs time to unfold, and let the new man take his time to find his own way to perform in the role.

 

I think Mr. Buffett opened that ball the exactly right way this past weekend. In, short I expect it to become an interesting and a positive experience to follow going forward. 

[Buckeye]

I’m pleased to see that BRK is trading down today in honor of Mr. Buffett’s announcement. I would have been saddened to see the stock rally on the news. It’s gotta feel good for the Ol Man to see as well, and it helps reinforce the idea that the extended applause he received at the meeting was more a tribute to what he has accomplished. 

[gfp]

Sort of interesting that Berkshire Hathaway board member Wally Weitz can sell BRK stock in the fund he manages without filing as an insider.  I wonder where the line is there.  Presumably Chris Davis can do the same.  Bruce has to file with JOE but that fund itself is over 10% so a different situation.  Gaynor left the CABO board before dumping his stock in privacy.

 

https://www.dataroma.com/m/holdings.php?m=WVALX

[Munger_Disciple]

6 minutes ago, gfp said:

Sort of interesting that Berkshire Hathaway board member Wally Weitz can sell BRK stock in the fund he manages without filing as an insider.  I wonder where the line is there.  Presumably Chris Davis can do the same.  Bruce has to file with JOE but that fund itself is over 10% so a different situation.  Gaynor left the CABO board before dumping his stock in privacy.

 

https://www.dataroma.com/m/holdings.php?m=WVALX

 

The only thing I can imagine is that Wally doesn't manage the large cap equity fund that sold BRK stock? I know he runs the whole firm, so it seems there is a conflict here. 

Edited May 5, 2025 by Munger_Disciple

[rogermunibond]

Private equity’s best days are over, says Egyptian billionaire Nassef Sawiris

https://www.ft.com/content/cb3eb78e-8412-4af3-a29e-2200f9816ae5

 

Private equity increasingly looking for liquidity to sell companies

 

What are the chances in the next 5 years that Greg Abel and Warren by something big from a private equity sponsor?

[Paulene]

9 hours ago, 73 Reds said:

I've long wished that Berkshire would consider forming a division focused on angel investing and venture capital.  Who knows what collaboration with some of the great minds around the World might ultimately generate.

 

[LC]

Nah...let them stick to their comfort zone. Not everything Brk touches is gold...remember their foray into healthcare?

 

https://en.wikipedia.org/wiki/Haven_Healthcare

[Parsad]

11 hours ago, gfp said:

Bill Miller suspiciously unwilling to do the same

 

Yup!  +1!  Cheers!

[Parsad]

11 hours ago, 73 Reds said:

There are folks here and on other investment forums who have been giving Buffett investment advice for as long as I can remember - nothing new there.  With Greg, the issue comes down to his propensity and ability to make large deals - particularly once Buffett is actually not available.  Shareholders will not give him the same deference to hold huge sums of cash as they do for Buffett.

 

He'll have far more options available to him since he isn't Buffett.  He can issue dividends, buy back stock, allocate a lot of it to Ted and Todd, pour more into dominant capital intensive businesses...I'm hoping the one thing that he learned from Buffett is that he can actually remain patient and flexible.  Cheers!

[Parsad]

10 hours ago, 73 Reds said:

I've long wished that Berkshire would consider forming a division focused on angel investing and venture capital.  Who knows what collaboration with some of the great minds around the World might ultimately generate.

 

Angel investing and venture capital are some of the worst areas to invest.  Either you better be the best at it or damn lucky...outcomes are horrible on a batting percentage basis. 

 

Berkshire should stick to what they are good at...insurance, buying businesses, allocating float and being the wealthiest company in the world!  They just aren't going to grow anywhere near that rate anymore, so instead be the company that grows at a above average rate and preserves capital better than anyone else.  Cheers! 

[Charlie]

4 hours ago, Parsad said:

Angel investing and venture capital are some of the worst areas to invest.  Either you better be the best at it or damn lucky...outcomes are horrible on a batting percentage basis. 

 

Berkshire should stick to what they are good at...insurance, buying businesses, allocating float and being the wealthiest company in the world!  They just aren't going to grow anywhere near that rate anymore, so instead be the company that grows at a above average rate and preserves capital better than anyone else.  Cheers!

+1

 

We have to play our time-tested strengths and not invest in creative (idiotic) things. 

[73 Reds]

11 hours ago, Parsad said:

 

Angel investing and venture capital are some of the worst areas to invest.  Either you better be the best at it or damn lucky...outcomes are horrible on a batting percentage basis. 

 

Berkshire should stick to what they are good at...insurance, buying businesses, allocating float and being the wealthiest company in the world!  They just aren't going to grow anywhere near that rate anymore, so instead be the company that grows at a above average rate and preserves capital better than anyone else.  Cheers! 

Sure, but for a relatively small capital outlay you may wind up with the next $ trillion company.  When your universe of existing investments is as small as Berkshire's, creativity can be rewarding.  And using a baseball analogy, even you have the worst batting average in history, one good swing can make all the difference.    

Edited May 6, 2025 by 73 Reds
word

[gfp]

3 minutes ago, 73 Reds said:

Sure, but for a relatively small capital outlay you may wind up with the next $ trillion company.  When your universe of existing investments is as small as Berkshire's, creativity can be rewarding.  And using a baseball analogy, even you have the worst batting average in history, one good swing can make all the difference.    

 

That's kind of how BYD played out for them.  

[73 Reds]

Just now, gfp said:

 

That's kind of how BYD played out for them.  

Yup.  Wasn't that Charlie's baby?

[Hektor]

11 hours ago, Parsad said:

Angel investing and venture capital are some of the worst areas to invest.  Either you better be the best at it or damn lucky...outcomes are horrible on a batting percentage basis. 

 

Berkshire should stick to what they are good at...insurance, buying businesses, allocating float and being the wealthiest company in the world!  They just aren't going to grow anywhere near that rate anymore, so instead be the company that grows at a above average rate and preserves capital better than anyone else.  Cheers! 

+1

[MMM20]

1 hour ago, gfp said:

That's kind of how BYD played out for them.  

Good point but nowadays to move the needle in early stage investing we would need something more like FB's Instagram investment. I won’t be shocked if Greg finds something like that on the energy side of things.

 

Edited May 6, 2025 by MMM20

[Spooky]

1 hour ago, 73 Reds said:

Sure, but for a relatively small capital outlay you may wind up with the next $ trillion company.  When your universe of existing investments is as small as Berkshire's, creativity can be rewarding.  And using a baseball analogy, even you have the worst batting average in history, one good swing can make all the difference.  

 

Constellation Software has been experimenting with VC style investments. https://vmsfund.com/

[gfp]

Barrons opining that Berkshire's contemplated but not executed deal may have been Sketchers.  Family controlled company, low debt, cash balance, 85 year old long tenured CEO.  Sketchers board would have solicited competing bids in private and Warren may not have known he might be bidding against his friend Jorge.  We may be able to tell once the merger proxy gets published if there is something in the 'background of the merger' section about 'party number two, a well-financed diversified conglomerate, made an all cash no contingency offer but refused to raise its initial offer.'

 

https://www.marketwatch.com/articles/berkshire-hathaway-10-billion-deal-skechers-ce4026b7?siteid=bigcharts&dist=bigcharts

[sleepydragon]

47 minutes ago, gfp said:

Barrons opining that Berkshire's contemplated but not executed deal may have been Sketchers.  Family controlled company, low debt, cash balance, 85 year old long tenured CEO.  Sketchers board would have solicited competing bids in private and Warren may not have known he might be bidding against his friend Jorge.  We may be able to tell once the merger proxy gets published if there is something in the 'background of the merger' section about 'party number two, a well-financed diversified conglomerate, made an all cash no contingency offer but refused to raise its initial offer.'

 

https://www.marketwatch.com/articles/berkshire-hathaway-10-billion-deal-skechers-ce4026b7?siteid=bigcharts&dist=bigcharts

 

could it also be Parkland in Canada?

https://www.reuters.com/markets/deals/sunoco-buy-parkland-9-billion-deal-2025-05-05/#:~:text=May 5 (Reuters) - U.S.,Parkland's largest shareholder immediately criticized.

 

When Buffett mentioned the 10b deal, he looked at Greg (who of course is a Canadian)

 

[BiggieCheese]

58 minutes ago, gfp said:

Barrons opining that Berkshire's contemplated but not executed deal may have been Sketchers.  Family controlled company, low debt, cash balance, 85 year old long tenured CEO.  Sketchers board would have solicited competing bids in private and Warren may not have known he might be bidding against his friend Jorge.  We may be able to tell once the merger proxy gets published if there is something in the 'background of the merger' section about 'party number two, a well-financed diversified conglomerate, made an all cash no contingency offer but refused to raise its initial offer.'

 

https://www.marketwatch.com/articles/berkshire-hathaway-10-billion-deal-skechers-ce4026b7?siteid=bigcharts&dist=bigcharts

@gfp what was the original quote on Berkshire almost investing $10b recently? I can't find it in the transcript. https://steadycompounding.com/transcript/brk-2025/

[gfp]

6 minutes ago, BiggieCheese said:

@gfp what was the original quote on Berkshire almost investing $10b recently? I can't find it in the transcript. https://steadycompounding.com/transcript/brk-2025/

 

He mentioned it several times - I scanned that transcript and found one of the "middle" mentions.  They alluded to it before and after this mention:

"

And Martin just wrote in an addendum in the last 40 minutes or so, pointing out that you mentioned Berkshire almost invested $10 billion recently and wanting to know if you could talk more about that.

Warren Buffett: Well, I can give you a good answer to the second part, which is no. But $10 billion wouldn’t have done that much anyway.

"

 

later - as part of Greg's answer:

"

The next opportunity is to acquire businesses in their totality, 100%. There are great times when we can do that. Warren touched on the $10 billion acquisition in the last quarter. But the value relative to the risk have to be right. If it’s right, we want to own it. If it’s not the time, there’ll be another time to own assets like that.

Then there’s the opportunity to own pieces of companies through equity. But as Warren’s always highlighted, though we own a piece of a company, we own a piece of that cash flow, a piece of their balance sheet. It’s not just a share certificate. We’ll approach it with the thought that we’re going to own this company for the long term."

Edited May 6, 2025 by gfp

[KPO]

25 minutes ago, sleepydragon said:

 

could it also be Parkland in Canada?

https://www.reuters.com/markets/deals/sunoco-buy-parkland-9-billion-deal-2025-05-05/#:~:text=May 5 (Reuters) - U.S.,Parkland's largest shareholder immediately criticized.

 

When Buffett mentioned the 10b deal, he looked at Greg (who of course is a Canadian)

 

This is a much better answer in my view. I’d hope they’ve moved past the footwear industry after their experience with Dexter and HH Brown.