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Buffett/Berkshire - general news


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Less and less is actually material to Berkshire parent company these days, but in the news yesterday is a large fire at an Illinois Chemtool plant.  Chemtool is a subsidiary of Lubrizol (purchased in 2011).

 

https://www.google.com/search?q=chemtool&client=safari&sxsrf=ALeKk014l-R38ukUgBp_ETy-qYpx__RDiA:1623773872280&source=lnms&tbm=nws&sa=X&ved=2ahUKEwi22uiGhZrxAhWXXc0KHWAvCtAQ_AUoBHoECAEQBg&biw=1341&bih=1287

 

In other news, TransRe (an Alleghany subsidiary) and GenRe are not renewing their 5 year underwriting partnership -

 

https://www.reinsurancene.ws/transre-and-gen-re-break-off-underwriting-partnership/

 

 

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Will we see a big number of share buybacks in Q2 2021 or a clear slowdown because the share price went up?

 

Anyone any thoughts?

 

I personaly think Berkshire Valuation as pretty much fair so I expect a clear slowdown of buybacks by Buffett.

 

On the other side, I prefer to see them keep doing buybacks even at fair value rather than the cash balance keep going up up and up.

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New 13-D by Buffett.

https://sec.gov/Archives/edgar/data/315090/000119312521197258/d174483dsc13da.htm

 

He owns 238,624 A-Shares and 2,412 B-Shares = 15.8% economic interest at of June 21st.

 

That's a reduction since Q1 of 23.05m B-equivalent shares.

 

At an average price of $285 per B-share, that's $6.6b in buybacks in Q2 so far.

 

If yes, that's huge buying even at prices people might've thought would mean he would stop/slow down the share repurchases.

 

wabuffo

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According to the filing after his latest philanthropic donations Warren Buffett's stake in Berkshire is down to 238626.6 class A equivalent shares which represents a 15.8% economic interest.

So if my math is correct outstanding A equivalent shares as per today are between 1515000 and 1505000. There were 1525655 the 31st of march. So they have repurchased between 20000 and 10000. So that is between 4.15 and 8.3 billion.

So it looks like buybacks are continuing at a decent clip despite the higher prices

Edited by JPerez
Error in calculation
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https://seekingalpha.com/news/3709624-hershey-gains-on-berkshire-hathaway-takeover-speculation

 

Hershey corporate jet spotted in Omaha.  Leads to speculation about the Old Fool buying HSY.  Of course, the Hershey Trust would have to approve - but perhaps they would like to do a swap for BRK stock...  

 

Also in the news....

 

https://apnews.com/article/ne-state-wire-health-coronavirus-pandemic-business-144420903ce861113de38af2edc87b71

 

Buffett and Munger sit-down interview on CNBC next Tues. 7pm on CNBC.

 

wabuffo

 

Edited by wabuffo
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19 hours ago, wabuffo said:

New 13-D by Buffett.

https://sec.gov/Archives/edgar/data/315090/000119312521197258/d174483dsc13da.htm

 

He owns 238,624 A-Shares and 2,412 B-Shares = 15.8% economic interest at of June 21st.

 

That's a reduction since Q1 of 23.05m B-equivalent shares.

 

At an average price of $285 per B-share, that's $6.6b in buybacks in Q2 so far.

 

If yes, that's huge buying even at prices people might've thought would mean he would stop/slow down the share repurchases.

 

wabuffo

Wabuffo, 

 

Congrats on being picked up by Whitney Tilson for your work above in Whitney's email today.  And, Thank you for doing the share repurchase math for some of the more lazy investors.  ME!

 

Congrats and CHEERS!

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Thanks for sharing the link. From the Pro Publica article, Ted had $264.4 million in his Roth IRA at the end of 2018. Safe to assume considerably more today. 
 

Amazing that Berkshire has found such rare talents to take the job. 

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Based on the numbers in the letter, $70,385 in 1989 to $131 million in 2012 is more like a 39% annual return, which is absolutely incredible considering he said every investment was in publicly traded stocks at market prices.

 

However, I wonder how his tax bill was only $28 million on a $131 million conversion. Roth conversions are ordinary income, and the top tax bracket was 35%, so it should have been more like $46 million. I can't think of any way that could have been possible if he did take all the income in a single year like he said.

 

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