Buffett/Berkshire - general news

[Xerxes]

[MCR]

4 hours ago, Xerxes said:

Here's the direct link: https://www.joincolossus.com/episodes/21729827/bloomstran-berkshire-hathaway-the-incomparable-compounder?tab=blocks

[ValueMaven]

awesome interview - nothing new or major - but Chris makes a lot of interesting points.  

[dcollon]

Thanks for highlighting the interview.  Much appreciated 

[sleepydragon]

Man, this guy can talk

[james22]

Really great, thanks.

[greenwave]

12 hours ago, sleepydragon said:

Man, this guy can talk

--

+ 1

With exceptional accumulated knowledge, sincerity and genuine humility 

 

greenwave

[yesman182]

I’ve always been puzzled as too why Chris’s portfolio doesn’t have more invested in Berkshire. I believe he said it the interview that he thinks Berkshire has an earning power of around 50 billion and will grow at about 12 annually. With his estimates Berkshire is trading at a PE of 12. He obviously respects and admires berk, so I’ve been puzzled as to why he isn’t more invested in it. 

[Spekulatius]

4 hours ago, yesman182 said:

I’ve always been puzzled as too why Chris’s portfolio doesn’t have more invested in Berkshire. I believe he said it the interview that he thinks Berkshire has an earning power of around 50 billion and will grow at about 12 annually. With his estimates Berkshire is trading at a PE of 12. He obviously respects and admires berk, so I’ve been puzzled as to why he isn’t more invested in it. 

He has got 30% of his fund in it. If he puts much more in it, why would anyone invest in this fund rather than buying BRK stock himself?

[sleepydragon]

13 minutes ago, Spekulatius said:

He has got 30% of his fund in it. If he puts much more in it, why would anyone invest in this fund rather than buying BRK stock himself?

He couls also be keep getting new investors, some has existing portfolio only to be liquidated slowly for tax reasons .

 

his other picks like XOM and Para were also bought by Buffett only recently . I think he’s pretty good… of course not as good as Buffett

[yesman182]

8 hours ago, Spekulatius said:

He has got 30% of his fund in it. If he puts much more in it, why would anyone invest in this fund rather than buying BRK stock himself?

I hadn’t thought about it like that, good point. But it seems to me that most people who are using investment managers aren't reading about the funds holdings, they are just trusting the manager. 

[yesman182]

8 hours ago, sleepydragon said:

He couls also be keep getting new investors, some has existing portfolio only to be liquidated slowly for tax reasons .

 

his other picks like XOM and Para were also bought by Buffett only recently . I think he’s pretty good… of course not as good as Buffett

Yeah I think he is pretty good too. 

[John Hjorth]

9 hours ago, Spekulatius said:

He has got 30% of his fund in it. If he puts much more in it, why would anyone invest in this fund rather than buying BRK stock himself?

 

@yesman182, this argument by @Spekulatius applies also to several other money managers than Mr. Bloomstran.

 

Please just try to look up both BRK.A and BRK.B [and look at the data combined for both, too] on Dataroma, for an initial overview.

 

Qualification : We don't know the exact fee structure of every money manager. But it is likely a lot of money over time in management/performance fees to several GPs, transferred from their individual LPs.

 

Why pay someone for being patient on behalf of you, when you here can practise it yourself for free by doing squat?

[Gregmal]

Crazy isn’t it? That the overwhelming majority of WS money guys make decisions based on their interests even if they are detrimental to the interests of the people paying them? 

[DooDiligence]

5 hours ago, John Hjorth said:

 

@yesman182, this argument by @Spekulatius applies also to several other money managers than Mr. Bloomstran.

 

Please just try to look up both BRK.A and BRK.B [and look at the data combined for both, too] on Dataroma, for an initial overview.

 

Qualification : We don't know the exact fee structure of every money manager. But it is likely a lot of money over time in management/performance fees to several GPs, transferred from their individual LPs.

 

Why pay someone for being patient on behalf of you, when you here can practise it yourself for free by doing squat?

 

I'm up to 14.3% BRK.B & adding slowly because I'm a squat thrust enthusiast.

[John Hjorth]

1 hour ago, Gregmal said:

Crazy isn’t it? That the overwhelming majority of WS money guys make decisions based on their interests even if they are detrimental to the interests of the people paying them? 

 

Perhaps, @Gregmal - In  a way it does not matter. Please just continue here on CoBF to be you - yourself.

[Charlie]

"Crazy isn’t it? That the overwhelming majority of WS money guys make decisions based on their interests even if they are detrimental to the interests of the people paying them? "

 

What usually counts are the incentives of the decision maker.

You have this problem probably in every profession. It´s human nature.

So as Buffett would say: "Don´t ask the barbar, if you need a haircut." or as Munger said: "Double check the opinion of the expert and decide after carefully thinking."

Self-interest rule the world....

[DooDiligence]

Thread...

 

5 things poor investment teams do and thus what to avoid

[ValueMaven]

$50B of normalized earnings power for Berkshire is a bit aggressive.  I realize WEB prefers to use look-through earnings on the stock portfolio ... however I've always questioned that approach.  Is it really look through if Berkshire cant access them???  I think a much more rational normalized earnings is about $35B of operating income over a cycle with GDP plus 3-5% overtime - coupled with some modest sharecount reduction.  Stock is cheap regardless.  Will be interesting to see how aggressive the buybacks have bee in the $270 - $280 range...I'm guess BIGLY.  

 

I bet Berkshire crushes the SP500 over the next 10 years.

Edited July 4, 2022 by ValueMaven

[ValueMaven]

 

[sleepydragon]

If you point a gun next to my head and ask me to buy just one stock, my answer: this is it, Berkshire Hathaway 

[Sinbius]

The first mistake that always come to my mind when I think about investing is when BRK was around book value (lot of years ago) and I didn't went all in on it...image what a stress/work free investment journey I would have had...

 

And I'm thinking...if opportunity presents itself....will I f$ck up again?  

Edited July 6, 2022 by Sinbius

[gfp]

Warren and Astrid at Sun Valley this week with their BYD masks.  Don't worry, Mark Millard can keep buying OXY shares while Warren is on holiday.

[sleepydragon]

5 minutes ago, gfp said:

Warren and Astrid at Sun Valley this week with their BYD masks.  Don't worry, Mark Millard can keep buying OXY shares while Warren is on holiday.

Where can I buy that shirt?

[ValueMaven]

I cant wait till they close the Alleghany deal ... such a great move on many levels!