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I would ques it is related to this value-growth rotation going on back and forth, which is mostly related to rate expectations, which is mostly related to economy expectations, which is somehow related to maybe delta scare and what not else, and it is only trying to explain past:) and still perhaps nobody on earth knows what will future be:). But I think BRK is quite well positioned, but they are regarded bu market as being more on the short duration side, so lower rate expectations is not as good for BRK valuation (as say for FANGS), but lower valuation is not so bad if BB are going on, so you cannot lose here and god bless BRK BB:)

Edited by UK
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Kinda: https://www.bloomberg.com/opinion/articles/2021-09-07/goldilocks-low-rates-economy-has-stock-investors-in-a-headlock?sref=uN6cur8D

 

"The rally is driven less by reflation prospects than a return to the pre-pandemic reality of low interest rates, which leaves no alternative to stocks"

 

But I would not pay to much attention to such things, better I think, until some real shit hits the fan, just to stay with mostly win-win situations, like BRK:))

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2 hours ago, CassiusKing1 said:

I hope Uncle Warren is doing the same!

Over a 10 year horizon it probably doesn't matter for an individual's purchase today (10% or 11% CAGR).  However, for Berkshire, I actually hope the reason that the price is correcting is because he has reduced repurchases. This an OK price but not worthy of 5%+ repurchases.  Let the price fall and lose a few weak hands. Very simplistic I know,  but for those with a longer term horizon, this is where we are currently at on a 11% CAGR journey.  That CAGR increases by 1 or 2% if the old boy and subsequent management can do buybacks at the right price.  The big one, is an option on capitalism actually having a role going forwards. 

 

image.png.1cd0e2993f71071e65355c67ee1f358c.png

Edited by nwoodman
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  • 2 weeks later...

Sonic Automotive just announced this large acquisition - I wonder if Berkshire Hathaway Automotive group even got a look at the deal.  I'm surprised they haven't done more bolt-on deals through that group.  Maybe the Texas situation with Berkshire owning Forest River makes it difficult for BHA to bid on dealer groups with a presence in Texas.

 

https://www.businesswire.com/news/home/20210922005256/en/Sonic-Automotive-Adds-3.2-Billion-in-Annualized-Revenues-with-Acquisition-of-RFJ-Auto-Partners-a-Top-15-U.S.-Dealer-Group

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https://www.wsj.com/articles/joe-biden-undo-rail-success-amtrak-canadian-pacific-deregulation-competition-11632511941

 

"One thing remains unchanged: Railroads and their biggest customers (such as coal shippers, agriculture processors and chemical plants) are condemned to live in angry tension because neither can exist without the other. Their ancient fights were recently reprised at length in the Washington Monthly by think tanker Phillip Longman, who portrays today’s freight railroads as abusive monopolists. These companies, he says, are operated by modern-day “robber barons” who perversely want to shrink the industry “to the point of non-viability” for “short-term economic gain” (this will be news to one of those robber barons, Warren Buffett, who praises his Burlington Northern Santa Fe as a source of long-term profits). When this argument doesn’t get him far, Mr. Longman rolls out an alternate clincher: climate change. Because railroads use less fuel per ton-mile than trucks, railroads should be forced to change their practices and pricing to subsidize more freight to switch from trucks to rail. The blessed result will be a “cooler planet” via “huge reductions in carbon emissions.” Echoing this argument has been Mr. Biden’s newly installed head of the Surface Transportation Board, Martin Oberman. In a speech he claimed that “123 million tons of global warming CO2 has been pumped into our atmosphere just because the railroads chose not to maintain their market share as compared to trucks (emphasis added).” The wording is slippery. Railroads and their customers both choose to maximize their efficiency and profitability. Messrs. Oberman and Longman also fail to mention that any emissions reductions would be infinitesimal in relation to the atmosphere."

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Very sad news.  Not my area of expertise, but seems strange to have detailed on a straight section of track.  Perhaps a mechanical fault rather than a structural issues with the rail itself?

 

At Least 3 Killed In Amtrak Derailment

https://www.npr.org/2021/09/25/1040734747/amtrak-train-derails-montana-injured

 

Five Amtrak cars derailed around 3:55 p.m. Mountain Daylight Time and no other trains or equipment were involved, Weiss said. The train was traveling on a BNSF Railroad main track at the time, he said.

Photos posted to social media showed several cars on their sides. Passengers were standing alongside the tracks, some carrying luggage.

The images showed sunny skies, and it appeared the accident occurred along a straight section of tracks.

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Not sure where to put this one but dam Munger is  effing legendary.

 

Quote

“It’d be nice if I were Mother Teresa and did something I didn’t like doing, because I’m a noble soul,” Munger said. “But my life is organized so that time after time, what works for my pocketbook works for every moral teaching that I’ve been taught.”

 

Billionaire Charlie Munger’s Timely Apartment Bet Began With Hebrew Bible

 

Billionaire partnered with friend on rentals before pandemic

Soaring rents have boosted value of multifamily buildings

 

https://www.bloomberg.com/news/articles/2021-10-01/charlie-munger-s-timely-apartment-bet-began-with-hebrew-bible?srnd=premium

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On 10/1/2021 at 2:28 PM, fareastwarriors said:

Not sure where to put this one but dam Munger is  effing legendary.

 

 

Billionaire Charlie Munger’s Timely Apartment Bet Began With Hebrew Bible

 

Billionaire partnered with friend on rentals before pandemic

Soaring rents have boosted value of multifamily buildings

 

https://www.bloomberg.com/news/articles/2021-10-01/charlie-munger-s-timely-apartment-bet-began-with-hebrew-bible?srnd=premium

LOL. Does he “pray” to Adam Smith invisible hand every night? 

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On 9/23/2021 at 4:37 PM, gfp said:

Sonic Automotive just announced this large acquisition - I wonder if Berkshire Hathaway Automotive group even got a look at the deal.  I'm surprised they haven't done more bolt-on deals through that group.  Maybe the Texas situation with Berkshire owning Forest River makes it difficult for BHA to bid on dealer groups with a presence in Texas.

 

https://www.businesswire.com/news/home/20210922005256/en/Sonic-Automotive-Adds-3.2-Billion-in-Annualized-Revenues-with-Acquisition-of-RFJ-Auto-Partners-a-Top-15-U.S.-Dealer-Group

 

Asbury Automotive just did a 3,2B acquisition the other day as well.

 

And it seems Van Tuyl is back in the game again - buying dealerships on his own after leaving Berkshire Hathaway... (https://samacharcentral.com/larry-van-tuyl-back-in-car-dealership-game/)

 

 

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5 hours ago, formthirteen said:

This was a pretty interesting read:

https://awilkinson.medium.com/the-berkshire-hathaway-of-the-internet-391a8ee83db

 

I'm sure he has "better" lawyers now than in 1967:

bild.thumb.png.5c7c5e3a63f32b5c1432fbdb7bbf65b3.png

 

This letter is interesting because it also incorporates all the representations / terms of the tender offer into the letter. Can't really say he does an acquisition just using a two page letter based on this.

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  • 2 weeks later...
Just now, Munger_Disciple said:

 

Underwhelmed

 

I've never succeseeded to read "The Snowball" to its end. From the fraction of what I've read of that book - before throwing it into a corner - where it still is right now - I remember reading something about the renovation of a kitchen, where "Dad" was supposed to "lift" the "plans" financially.

 

"Dad"s answer - according to the book - was: "Talk with your bank about it", or something in that line.

 

Disclosure: I'm biased here.

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