Jump to content

Recommended Posts

Posted
1 hour ago, xboojum said:

I'll make myself unpopular not by defending this take (which I think is bad) but by saying that I do think there's something to the idea that ownership by Berkshire prevents most subsidiaries from really dominating their industry; the capital getting sent upstream rather than reinvested in the business is the right decision for mediocre businesses (or even ones like See's that don't have much opportunity to reinvest) and the wrong one for world-beaters. Of course most of the businesses under the umbrella are somewhere in-between, making things trickier, but it's a pretty common pattern, comparing e.g. Benjamin Moore to Sherwin Williams, or BNSF to the independent Class I rail companies, or even in recent years GEICO (for decades a world-beater!) to Progressive.

 

This is what I expect Greg to address. Applying his skill as an operator, to allocating capital where it's needed.

Posted

One of the greatest determinants of return (besides good luck) for any investor, including Berkshire is knowing when to run-off a business that is weak or is in structural decline or that technology is disintermediating and then repositioning that cash into the growth sectors. Philip Fischer was a big influence on Buffett and Munger because he espoused the idea of not just going for Ben Graham value style situations that may have a one-time pop but true growth stocks that can grow for a generation.. Brk has been around for 2-3 generations so you can't expect even some growth picks to keep up. That is why I really am interested to see if they invest in AI in a bear market. There are also assets that are 'forever' like real world energy infrastructure , but those tend to be slow growing and capital intensive and if it wasn't for the float leverage, I doubt it would be a good business to show 20% cagr over the years.

Posted (edited)

Reuters article on Pacificorp lawsuits:

 

https://www.reuters.com/sustainability/boards-policy-regulation/sp-may-cut-berkshire-owned-pacificorp-utility-junk-because-wildfires-2026-03-03/

 

It's weird that Abel didn't discuss the elephant in the room in more detail in his shareholder letter. I see it as a negative, and I hope he discusses problems at Berkshire in more detail in future reports. 

Edited by Munger_Disciple
Posted (edited)

Berkshire buys back some shares

 

Greg Abel buys shares personally with his bonus - US$15.3 mn

 

Greg Abel commits to buy shares personally each year with his bonus. 

Edited by kiwing100
Posted
3 minutes ago, kiwing100 said:

Berkshire buys back some shares

 

Greg Abel buys shares personally with his bonus - US$15.3 mn

 

Greg Abel commits to buy shares personally each year with his bonus. 

Great news

Posted
21 minutes ago, kiwing100 said:

Berkshire buys back some shares

 

Greg Abel buys shares personally with his bonus - US$15.3 mn

 

Greg Abel commits to buy shares personally each year with his bonus. 

 

Looks like it's not with his bonus, but instead his entire aftertax salary. 

Posted
2 minutes ago, Pellom said:

 

Looks like it's not with his bonus, but instead his entire aftertax salary. 

Thank you for your correction.

Posted

I am a multi-decade shareholder. I like the purchase by Abel but I do not like the timing. It is inappropriate given that BRKB felt they wanted to be transparent and let fellow shareholders know by filing an 8K. If they wanted to be transparent, they should have announced the share buyback in the 8K and then subsequently Abel should have been allowed to buy. Maybe I am missing something, but I am scratching my head.

Posted
16 minutes ago, ander said:

I am a multi-decade shareholder. I like the purchase by Abel but I do not like the timing. It is inappropriate given that BRKB felt they wanted to be transparent and let fellow shareholders know by filing an 8K. If they wanted to be transparent, they should have announced the share buyback in the 8K and then subsequently Abel should have been allowed to buy. Maybe I am missing something, but I am scratching my head.

He explained it by saying they have a two day blackout following the 10k release. 

 

He also said he plans to do this yearly on the same day (presumably 2 days after the 10k). It won't always align with share repurchases, I'm sure. 

Posted
11 minutes ago, ander said:

I am a multi-decade shareholder. I like the purchase by Abel but I do not like the timing. It is inappropriate given that BRKB felt they wanted to be transparent and let fellow shareholders know by filing an 8K. If they wanted to be transparent, they should have announced the share buyback in the 8K and then subsequently Abel should have been allowed to buy. Maybe I am missing something, but I am scratching my head.

 

Abel is in a unique position now...the only person ever to run Berkshire outside of Buffett!  The expectations and responsibilities cannot be higher.  So in this type of position, you are damned if you do, damned if you don't.  

 

We had people on here saying...I hope he buys stock with his massive salary.  Well, now he said he will buy/invest in BRK stock with his after-tax salary as long as he works for Berkshire...all of it...that could be a couple of decades or longer. 

 

So, now we complain about transparency, something weird, they didn't give us time, Buffett wouldn't do that...this is what happens in these cases.

 

If you've been a shareholder for a couple of decades, you should have known when to buy.  I loaded up a large slug two days ago and said on here I thought it was getting cheaper! 

 

We are talking about a public company...they aren't going to come out and signal to us ahead of time...ok, go have your fill.  It's up to the investor to ultimately make that calculation and decision.  Cheers! 

Posted (edited)
19 minutes ago, Parsad said:

 

Abel is in a unique position now...the only person ever to run Berkshire outside of Buffett!  The expectations and responsibilities cannot be higher.  So in this type of position, you are damned if you do, damned if you don't.  

 

We had people on here saying...I hope he buys stock with his massive salary.  Well, now he said he will buy/invest in BRK stock with his after-tax salary as long as he works for Berkshire...all of it...that could be a couple of decades or longer. 

 

So, now we complain about transparency, something weird, they didn't give us time, Buffett wouldn't do that...this is what happens in these cases.

 

If you've been a shareholder for a couple of decades, you should have known when to buy.  I loaded up a large slug two days ago and said on here I thought it was getting cheaper! 

 

We are talking about a public company...they aren't going to come out and signal to us ahead of time...ok, go have your fill.  It's up to the investor to ultimately make that calculation and decision.  Cheers! 

I like him buying, BUT I prefer him buying 3/5 or after -- after the 8k release. An announcement of a buyback (or resumption of a buyback) is material news. All he had to do to uphold BRKB high historical standards and to avoid the perception of any impropriety was wait a day (not legally required but would have been the right thing to do for his partners selling on 3/4 imo).

 

Counterargument is that they were not legally required to disclose the resumption in an 8-K, but by the fact that they did disclose it seems it was viewed to be important enough. In which case, the prudent thing for the CEO who know the buyback was being resumed and would be announced is to wait 1 day.

Edited by ander
Posted (edited)
19 minutes ago, gfp said:

He is buying the A shares.

https://www.sec.gov/Archives/edgar/data/1067983/000119312526092556/xslF345X05/ownership.xml

 

I loaded up whatever the opposite of a "large slug" is.  Less than a small slug.  At better prices than that piker Greg for sure but he has other things to do.  

 

But I also own a few remaining march 20th 470-strike call options so I welcome the news

gfp, congratulations. 

 

In 2025 we top-ticked Berkshire and now we bottom-ticked Berkshire (with small amounts of shares). 🙂

Edited by Charlie
Posted

On the letter he says no cash dividend as long as “better opportunity” etc … than share buyback comes in a week later. 
 

last I checked buybacks are also funded from the same “well of T-bill” where cash dividend funding comes from 

 

——-

 

on a different note, the more intriguing part of the letter was the grouping of US-based Forever4 in the letter that included Moody’, but not larger market cap name
 

alongside there Forever5 in Japan. 

Posted
37 minutes ago, ander said:

I like him buying, BUT I prefer him buying 3/5 or after -- after the 8k release. An announcement of a buyback (or resumption of a buyback) is material news. All he had to do to uphold BRKB high historical standards and to avoid the perception of any impropriety was wait a day (not legally required but would have been the right thing to do for his partners selling on 3/4 imo).

 

Counterargument is that they were not legally required to disclose the resumption in an 8-K, but by the fact that they did disclose it seems it was viewed to be important enough. In which case, the prudent thing for the CEO who know the buyback was being resumed and would be announced is to wait 1 day.

 

You may be right...but at the same time, BRK is no longer Buffett's BRK that we knew. 

 

Corporate governance will always be better than the average company, but it will almost be impossible to fully preserve Buffett's culture...or Prem's for that matter Fairfax when he retires. 

 

Founders just have a different view of their artwork than others...if you didn't build it, it's very hard to find someone who will treat it exactly the same...just like your kids!  🤣  Cheers!

Posted
23 minutes ago, Xerxes said:

On the letter he says no cash dividend as long as “better opportunity” etc … than share buyback comes in a week later. 
 

last I checked buybacks are also funded from the same “well of T-bill” where cash dividend funding comes from 

 

 

No taxable event with buybacks.  Firepower to support the stock in a crisis or if something happens to Buffett/lack of confidence in Abel.

 

Eventually, there will just be too much cash coming out of Berkshire.  They will have to pay a dividend when the stock no longer needs that type of support because confidence keeps the price in line with fair value.  

 

People have always talked about the "Buffett discount", not "premium".  Well, now that "discount" will probably disappear over the next 5-10 years.  Cheers!

Posted

We may be surprised. Greg and Ted still have a lot of energy. Much more than Warren and Charlie for the past 10 years. If, PE ends up blowing up here soon, there may be a fire 🔥 sale on a wide range assets. 

 

 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...