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Buffett/Berkshire - general news


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Matt Levine has a very short take on BRK share buybacks which has an interesting quote:

But it feels presumptuous to think that Berkshire’s shareholders would be better stewards of their cash than Buffett is.

 

Full take is in the middle of his today's Money Stuff column:

https://www.bloomberg.com/opinion/articles/2018-11-05/expensive-stocks-make-for-good-bonds

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This article is an update on the ballot item in Nevada to open up NV Energy's regulated monopoly to more choice.  Obviously NV Energy would still own the distribution infrastructure.  BHE has been spending a lot of money on lobbying / advertising.  Some large individual casinos had already won the right to pay a termination fee and buy their power from an independent producer. 

 

https://www.politico.com/story/2018/10/27/adelson-buffett-nevada-890190

https://www.rgj.com/story/news/politics/2018/11/06/63-million-spent-defeat-nevadas-question-3-worked/1908835002/

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A new SEC filing of type SC 13G has appeared, disclosing an 11.3% stake in StoneCo Ltd. (ticker: STNE) of São Paulo, Brazil (14,166,748 shares of Common Stock)

 

None of this is attributable to Berkshire's pension funds - all is held via National Indemnity Company.

 

The IPO came after 30th Sep 2018 so it will not appear in the 13-F filings which are likely to be released in the middle of next week.

 

The price since IPO on 25th Oct has been between about $27 and $31 per share. At current price of $27.70, the stake is priced at $392 million USD. The IPO price was $24 per share, Berkhire's stake presumably having cost $340,001,952.

 

The 13G filing must be made within 10 business days of acquisition of a 5% stake, so it's likely to have been acquired on 25th October at IPO.

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Yeah, Berkshire's involvement was in the IPO prospectus (which doesn't help you get a lower price - wonder why they did that?)

 

The Walton family VC vehicle Madrone owned a lot and added 2.75m shares in the IPO and management at Madrone told Todd Combs about it and Todd decided to invest.  There are some 3G principals invested in it as well - I believe from an earlier round.

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Todd and Ted would (might?) be great if BRK was 10-100 times smaller. At this size it's going to be tough ... for anyone, even Buffett himself.

 

Jurgis, they just have to deliver, according the their signed contract with Berkshire. No soft feelings here from me. They are hired to deliver.

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Nah, they'll be ok. This is how it goes. One Monday Todd walks into the office and goes.... Hey Ted, let's go talk to the old man about buying GE. Done.

 

See... it's not that hard.

 

OK, rb. My reply to Jurgis was actually about that I [in general] worry more about myself than Ted & Todd. [ : - ) ]

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Extra holdings not captured by dataroma, from General Re New England Asset management -

 

https://www.sec.gov/Archives/edgar/data/1004244/000108514618002756/xslForm13F_X01/form13fInfoTable.xml

 

BAC +1.75 million shares

BK +11.063 million shares

JPM +545,000 shares

ORCL +1.287 million shares

PNC +1.1 million shares

TRV +43,000 shares

 

In addition to the stuff reported at Dataroma from the regular 13F:

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

 

-------

So, Berkshire owns exactly 900 million shares of BAC, or 9.17%

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The exposure to US banks is now enormous - about USD 70 B [getting to USD 67.8 B alone from Dataroma, exclusive New England Asset Management]. It better go well.

 

The big four banks are trading at depressed PE, buying backs stocks each year using  70-80+% of their profits. If it keeps going, they will be no shares left after a decade.

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The exposure to US banks is now enormous - about USD 70 B [getting to USD 67.8 B alone from Dataroma, exclusive New England Asset Management]. It better go well.

 

The big four banks are trading at depressed PE, buying backs stocks each year using  70-80+% of their profits. If it keeps going, they will be no shares left after a decade.

 

I cannot wait to sell them their last share in 2028!

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The exposure to US banks is now enormous - about USD 70 B [getting to USD 67.8 B alone from Dataroma, exclusive New England Asset Management]. It better go well.

 

I sure hope so! My four largest holdings are

 

1. BRKB

2. WFC

3. BAC

4. BK

 

How funny. These are my top 4 holdings too, and at the same order. There only difference is these four are also my Only holdings.

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