Buffett/Berkshire - general news

[sleepydragon]

1 hour ago, gfp said:

ProPublica article out this morning: 

 

https://www.propublica.org/article/warren-buffett-privately-traded-stocks-berkshire-hathaway-ethics-irs?taid=654cafb069a63b000142e9d4&utm_campaign=trueanthem&utm_medium=social&utm_source=twitter

 

edit: I read the article and there doesn't seem to be a whole lot there.  I was actually confused when the article ended so abruptly.  

even for Congress man , institutional money managers or perhaps SEC staff, you are allowed to trade stocks for your personal account. It’s only a conflict of interest if your personal trade is in the opposite direction of your firm trade, for example if you are buying for your clients and you are selling your own at the same time or shortly after (not before) your firm trade.

 

If it’s the same direction, there’s no problem at all , unless the personal trade is unwinded shortly after the firm trade 

[LC]

Anyone have access to the IRS data leak they use to source this information?

[Blugolds]

I think the article is making mountains out of mole hills. Chastises him for potentially violating his own policy? Gimme a break. 

 

He said he doesn’t want to even provide a hint of front running BRK moves in his personal account. So it would make sense that he would exit WMT if BRK took or increased position in a security he held. 

 

Honestly, I think WB is a lighthouse of integrity in rough seas of deceit that is Wall Street. Is he perfect? Nope, does he get it right 99% of the time. Yup. Does he go above and beyond to maintain trust and integrity, absolutely. His reputation is better than anyone else on Wall Street, without a doubt, and a significant reason that Omaha gets calls that others dont. I think some people just have such a hard time acknowledging that he is the real deal that they look for chinks in the armor. 

 

If he knew BRK was gonna double WMT it’s reasonable to assume he would exit in his personal account. Not to mention I think they said like a half billion in his personal account as an estimate and they are critical of $25M, thats insignificant percentage holding, to insinuate there is some kind of shady or questionable behavior is a joke.

 

There are so many LEGIT liars/cheats on Wall Street that are actually worthy of scrutiny they would be better off spending time on those. For instance, insider trading via politicians on both sides of the aisle. There is enough there to keep them busy writing articles for decades LOL. No sense in even wasting time in Omaha, Washington has all they could handle. 

 

 

They lost me with:

 

in August 2009, Buffett appeared to move, in his personal portfolio, in the opposite direction of Berkshire’s portfolio. He sold $25 million of Walmart stock in his personal account, even as Berkshire almost doubled its stake (which had previously held steady for 15 quarters) during the same quarter. It’s unclear which transaction came first, but no matter the order of events, it raises the question of why Buffett made one choice for his own portfolio and the opposite choice for Berkshire’s investors. And if he knew Berkshire had or was considering making a move, and still traded, Buffett again risked violating his own insider trading policy.

 

 

[gfp]

To quote Charlie Munger at the 2012 AGM:

 

"And I don’t think you need to worry about Warren’s side investments. His investments in Berkshire are so huge and those are so small, relevantly, that if that’s your main problem in life, you have a very favored life."

[NnnnotSoSmart]

Hasn't WEB said on many occasions that he has never sold a share of Berkshire stock?

 

We should take him at his word until proven otherwise.

[ValueMaven]

Total BS and I am sure there is a logical answer here re: personal trading.  

[ValueMaven]

 

[sleepydragon]

13F is out. Any guesses what the secret stock(s) is/are?

 

[Xerxes]

Certainly this must be a blow to Markel fanboys. Position cut by 66%. 
 

At the end of the day, while Berkshire might be a cornerstone foundational investment for Markel, the latter is just a security/tracking stock for Berkshire. They come and go. 
 

Ping me, when there is a +$15 billion position. 
 

 

Edited November 15, 2023 by Xerxes

[UK]

26 minutes ago, Xerxes said:

Certainly this must be a blow to Markel fanboys. Position cut by 66%. 
 

At the end of the day, while Berkshire might be a cornerstone foundational investment for Markel, the latter is just a security/tracking stock for Berkshire. They come and go. 
 

Ping me, when there is a +$15 billion position. 
 

 

 

Obviously, they switched to FFH, we just can not see this:)

[Xerxes]

1 hour ago, UK said:

 

Obviously, they switched to FFH, we just can not see this:)

yeah. That would be a fatal blow to Markel’ Berkshire aura. 
 

That said I would think that Berkshire investment team’ bandwidth is better spend looking at stand alone operating businesses, where they can bring to bear their expertise. Than opaque conglomerate-like creatures like Markel and/or Fairfax. 

[Parsad]

John Malone believes Buffett is expecting opportunities due to massive cash pile.  Cheers!

 

https://finance.yahoo.com/news/warren-buffett-sitting-monstrous-pile-193107202.html

[Xerxes]

I wonder if that Business Insider article (shown on Yahoo) was written by AI. 
 

Prompt AI :  write me an article about Buffett. Focus on cash pile. Extract and include recent Mungerism references (if any). 

[John Hjorth]

5 minutes ago, Xerxes said:

write me an article about Buffett. Focus on cash pile. Extract and include recent Mungerism references (if any)

ChatGPT :

 

Quote

Title: "Buffett's Cash Pile: Navigating the Markets with Munger Wisdom"

Introduction:

Warren Buffett, the Oracle of Omaha, is a name synonymous with value investing and financial acumen. As the chairman and CEO of Berkshire Hathaway, Buffett has built a reputation for making savvy investment decisions that have stood the test of time. One intriguing aspect of Buffett's investment strategy in recent years has been the substantial cash pile that Berkshire has amassed. This cash hoard has become a subject of much speculation and analysis within the financial community, drawing attention to Buffett's approach in navigating the ever-changing landscape of the markets.

The Enigmatic Cash Pile:

Berkshire Hathaway's cash pile, often referred to as "cash hoard" or "war chest," has been a focal point of discussions among investors and analysts. As of the latest available data, Berkshire held a significant amount of cash and cash equivalents, leading many to wonder about Buffett's intentions for this liquidity.

Buffett's rationale for maintaining a substantial cash position has roots in his value investing philosophy. He believes in having ample reserves to seize opportunities during market downturns when attractive investments become available at discounted prices. This approach aligns with the famous Buffett adage: "Be fearful when others are greedy and greedy when others are fearful."

Mungerism and the Power of Patience:

Charlie Munger, Buffett's longtime business partner and Vice Chairman of Berkshire Hathaway, is known for his straightforward and often witty remarks, which are now commonly referred to as "Mungerisms." Munger's wisdom complements Buffett's investment principles, emphasizing the importance of patience, discipline, and a long-term perspective.

In a recent interview, Munger addressed the issue of Berkshire's cash pile, stating, "The fact that we've got more cash than usual doesn't mean we intend to deploy it. We're just waiting. We're not waiting because we like having a big pile of cash. We're waiting because it's hard to find things that we like."

This Mungerism encapsulates the duo's approach of patiently waiting for the right opportunities, even if it means holding onto a significant amount of cash. Munger's emphasis on discipline in decision-making resonates with Berkshire's strategy of not rushing into investments simply for the sake of deploying capital.

Buffett's Market Timing Dilemma:

Buffett's cash position has led to debates about whether the market conditions and valuation levels have made finding attractive investments more challenging. During Berkshire's annual shareholder meeting, Buffett acknowledged the difficulty of finding suitable acquisitions, stating, "Prices are sky-high for businesses possessing decent long-term prospects."

This admission reflects the cautious approach Buffett is taking in deploying Berkshire's cash. It also underscores the influence of market conditions on the timing of investment decisions. In a market where valuations are stretched, Buffett and Munger's dedication to disciplined investing is showcased by their willingness to bide their time.

Conclusion:

Warren Buffett's cash pile, coupled with Charlie Munger's insightful remarks, provides a fascinating glimpse into the minds of two legendary investors. As the financial world eagerly awaits Berkshire Hathaway's next move, the duo's commitment to patience, discipline, and a long-term perspective serves as a guiding light for investors navigating the complexities of the market. In the words of Munger, "It takes character to sit there with all that cash and do nothing. I didn't get to where I am by going after mediocre opportunities." Buffett and Munger's enduring success lies in their ability to discern exceptional opportunities amidst the noise of the market, even if it means holding onto a substantial cash pile until the right moment arrives.

 

[John, Odense, Denmark, posting!]

[Xerxes]

Lol thank you @John Hjorth

 

the reason why i made the comment is because the Business Insider article referenced John Malone. I figured only AI would randomly pull “recent” cross references (in this case Malone) on a Berkshire related article. 

[Dynamic]

I suspect they wanted to take the opportunity of him commenting on Berkshire to tag both companies and attract more clicks, so it could be a human. I see the same with Selling Alpha where somebody quotes Buffett and mentions Berkshire as an aside when writing about a different company so the link shows up on my daily email.

[rolling]

20 hours ago, sleepydragon said:

13F is out. Any guesses what the secret stock(s) is/are?

 

Only certainty is that it is a financial stock (1,2B increase in cost basis for financial stocks but no financial stockes added on the 13-F).
Schwab?
Fairfax has been mentioned but seems unlikely (canadian stock and a big position could attract regulatory attention)

 

Other? (I must admit financial stocks are not my beach)

[Whensthepaintdry?]

I will guess DFS. 

[sleepydragon]

I am thinking FIS - a finance company with a new female blonde ceo..  Buffett like blonde:)

 

and FIS just splited out their “sexy” business and what’s left is the stable, moaty business of bank back office. Baupost also owns shares in this company.

 

 

[UK]

https://www.cnbc.com/2023/11/16/charlie-munger-says-there-isnt-the-slightest-chance-buffett-traded-own-account-to-enrich-himself.html

[John Hjorth]

3 hours ago, UK said:

https://www.cnbc.com/2023/11/16/charlie-munger-says-there-isnt-the-slightest-chance-buffett-traded-own-account-to-enrich-himself.html

 

*BS* article by CNBC, by logic. Only objective, documented facts rules here for judgement. It [Mr. Mungers statement] just proves that Mr. Munger is [naturally] fading.

 

Please make sure to be very aware of the concept of geriatric-related loss of cognitive abilities in your own personal sphere.

 

[ValueMaven]

He was also unaware of the article - which is odd for a corporate board member. 

[sleepydragon]

I agree with Munger. Munger has what nowadays many people lack: common sense.

 

There’s nothing wrong unless 1. Buffett’s trade either the same direction and immediately preceding Berkshire’s trade, or 2. opposite directions and after Berkshire’s trade. Almost all portfolio managers at mutual funds or hedge funds can trade their personal account, as long as you are not trading against your clients. 

 

And you can look at how long he hold his positions. Was he flipping right after Berkshire bought or sold? He was not. All those stocks he had for decades. 
 

[yesman182]

22 hours ago, Whensthepaintdry? said:

I will guess DFS. 

This is what I was wondering. They love their American Express, but can’t buy anymore. They also aren’t scared of consumer finance with ally and cof. 

[John Hjorth]

On 11/16/2023 at 1:10 AM, rolling said:

Only certainty is that it is a financial stock (1,2B increase in cost basis for financial stocks but no financial stockes added on the 13-F).
Schwab?
Fairfax has been mentioned but seems unlikely (canadian stock and a big position could attract regulatory attention)

 

Other? (I must admit financial stocks are not my beach)

 

It does not really matter with a balance sheet of USD 1 T and an equity of north of USD 0.5 T.