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Buffett/Berkshire - general news


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1 hour ago, gfp said:

Preliminary merger proxy is out for the Alleghany deal (still not a done deal, go-shop period ends midnight on the 14th) - for those curious how it came together, search for "Background of the Merger" in the document (or actually it might automatically go right there with this link).  Buffett had dinner with Joe Brandon in NYC.  Wonder if he was back in Omaha by bedtime.

 

https://www.sec.gov/Archives/edgar/data/0000775368/000114036122013997/ny20003698x1_prem14a.htm#tBOM

Suprised Buffett never pushed for a deal-break fee. They're effectively giving Alleghany a free put option until the shareholder vote. 

 

I don't expect this deal to close. It's like Buffett wants Berkshire to be the stalking horse for an Alleghany auction.

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12 hours ago, Poor Charlie said:

Suprised Buffett never pushed for a deal-break fee. They're effectively giving Alleghany a free put option until the shareholder vote. 

 

I don't expect this deal to close. It's like Buffett wants Berkshire to be the stalking horse for an Alleghany auction.

Perhaps that was the condition for him to not pay for the broker. "they are useless. you will never get a better deal than this..I'm ready to let you shop around but you'll have to pay for it.."

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14 hours ago, Poor Charlie said:

Suprised Buffett never pushed for a deal-break fee. They're effectively giving Alleghany a free put option until the shareholder vote. 

 

I don't expect this deal to close. It's like Buffett wants Berkshire to be the stalking horse for an Alleghany auction.

No break fee gave the offer more weight in the eyes of the board and GS. It also seems consistent with the knowledge that BH will not engage in an auction. Take it or leave it. Minimal costs incurred by BH (I hope WEB didn't pay for dinner!!!). Allegheny attempted to get a better deal but was denied by WEB. It shows how nimble this company and its advisors are. I would be surprised to see a superior offer.

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2 hours ago, ValueMaven said:

Looks like the Y deal will all but close.  Go Shop ends tonight at Midnight EST.  No one is willing to outbid Berkshire here esp given the mark-to-market losses on the fixed income portfolio in 1Q.  The Agg had its worst quarter in 40 years down -6% !! 

The deal closes after an Allegheny shareholder vote. Until then, they can accept competing offers (with no deal-break fee paid to Berkshire).

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2 hours ago, ValueMaven said:

Looks like the Y deal will all but close.  Go Shop ends tonight at Midnight EST.  No one is willing to outbid Berkshire here esp given the mark-to-market losses on the fixed income portfolio in 1Q.  The Agg had its worst quarter in 40 years down -6% !! 

 

While i think it's highly likely to go to Berkshire, I have not seen an announcement regarding the results of the go shop (which should come tomorrow or Monday). Right? 

 

 

 

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Correct, they may issue a press release about the expiration of the go-shop tomorrow or Monday.  A superior offer can come in any time before the shareholder vote.  The deal actually closes towards the end of the year, say October - December, when regulators say everything is OK to proceed.

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1 hour ago, gfp said:

Correct, they may issue a press release about the expiration of the go-shop tomorrow or Monday.  A superior offer can come in any time before the shareholder vote.  The deal actually closes towards the end of the year, say October - December, when regulators say everything is OK to proceed.

Yea we’ll find out if there’s folks who have requested / been granted confidential information for sake of diligence / offer in the next few days.

 

got a little lotto ticket riding in this but expect it to be a tax writeoff

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Thanks indeed @longterminvestor for posting.

 

I found the following really interesting:

  • What candidate business will be worth 10-20 years from now: Buffett said that when deciding on whether to invest in a company, he looks for "what is the company going to be worth 10 or 20 years from now".  Did he always look that far out or did he used to look only about 5-10 years out?
  • $5 Billion size investments making only a 1% impact: He said that even now he finds some "whales", but that even if he finds a $5B investment that he thinks is a "whale", it will only be about 1% of the portfolio. 

 

Any recent ~$5B size investments he might be referring to?  

 

Thoughts?

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3 hours ago, LearningMachine said:

Thanks indeed @longterminvestor for posting.

 

I found the following really interesting:

  • What candidate business will be worth 10-20 years from now: Buffett said that when deciding on whether to invest in a company, he looks for "what is the company going to be worth 10 or 20 years from now".  Did he always look that far out or did he used to look only about 5-10 years out?
  • $5 Billion size investments making only a 1% impact: He said that even now he finds some "whales", but that even if he finds a $5B investment that he thinks is a "whale", it will only be about 1% of the portfolio. 

 

Any recent ~$5B size investments he might be referring to?  

 

Thoughts?

HP! lol 

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He mentioned in passing that "he knows a guy" that produces as many smartphones as Apple. AFAIK, the only one that really fits that description is Jay Y Lee. I didn't know that they were personally familiar with each other. BRK had a small investment in Samsung a few years back, which he sold for a quick double or so. Maybe he's back in again. BRK would be a pretty logical taker of block trades associated with sales of Samsung stock in order to meet inheritance tax obligations. 

 

Samsung owner family is 3 trillion won short in inheritance tax payment (koreatimes.co.kr)

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25 minutes ago, Xerxes said:

Is this a joke ?

I thought Charlie Rose lost his job as part of the #metoo movement 

 

This was his first interview released since his exile - something like 4 years.  He apparently retained the rights to his name and website so he doesn't need an employer to attempt his redemption.  Warren and Susan Buffett had been friends with Charlie Rose for a very long time (and he did Susan's only televised interview), so it's no surprise that Warren gave him the benefit of the doubt.  That said, it does sound like he was an inappropriate colleague at work for decades.  Multiple, credible, ass grabs isn't in the category of 'creepy old man makes off-color jokes all the time.'

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7 minutes ago, gfp said:

That said, it does sound like he was an inappropriate colleague at work for decades. 


In the Lights Out book about GE, it was said that Jack Welch had dismissed it as joie de vivre when confronted by his folks about questionable behaviour of some GE higher ups at work 

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9 hours ago, alwaysinvert said:

He mentioned in passing that "he knows a guy" that produces as many smartphones as Apple.

My guess: Duan Yongping. He won the 2006 GLIDE lunch auction, and they've probably kept in touch since (given Duan's knowledge on investing, china, electronics, apple, etc.). 

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