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Posted

From what I recall Buffett believed more in Melinda gates for the philanthropy than Bill Gates. With her gone it makes sense that he doesn’t want to give the rest of his money to the Bill and Melinda gates foundation. Also his kids can probably handle it better now than they would have been able to almost 20 years ago. 

Posted

Its all in the letters written in 2006, 2012, and 2021.  You don't need to have a reported parrot it back to you for a fee, just read what's already there.  One of the conditions of Mr. Buffett's "irrevocable" gift to Bill & Melinda Gates Foundation (BMG) was 1 of them is actively involved.  So when BMG broke up because of divorce, and Melinda started her own foundation, this change was inevitable.  Maybe one of the reasons why Gates marriage took as long as it did to break up, because of Mr. Buffett's pledge?  (Pure speculation)  

 

This just further shows how much thought and consideration of the future Mr. Buffett puts into his actions.  His actions had huge implications with simple instructions.  This is the model I strive for every day.  Simple to understand and well thought through to the end.  Its a work of art.  

 

LETTERS

https://www.berkshirehathaway.com/donate/webdonat.html

FORTUNE ARTICLE ATTACHED

fortune071006.pdf

Posted
On 6/28/2024 at 8:34 AM, longlake95 said:


I’m not surprised. I guess Warren changed his mind on what he thinks of Bill…

 

 

It's crazy how much they raved about each other and Warren backpedalling from Bill like he and David Sokol.

 

Posted (edited)
14 hours ago, longterminvestor said:

Its all in the letters written in 2006, 2012, and 2021.  You don't need to have a reported parrot it back to you for a fee, just read what's already there.  One of the conditions of Mr. Buffett's "irrevocable" gift to Bill & Melinda Gates Foundation (BMG) was 1 of them is actively involved.  So when BMG broke up because of divorce, and Melinda started her own foundation, this change was inevitable.  Maybe one of the reasons why Gates marriage took as long as it did to break up, because of Mr. Buffett's pledge?  (Pure speculation)  

 

This just further shows how much thought and consideration of the future Mr. Buffett puts into his actions.  His actions had huge implications with simple instructions.  This is the model I strive for every day.  Simple to understand and well thought through to the end.  Its a work of art.  

 

LETTERS

https://www.berkshirehathaway.com/donate/webdonat.html

FORTUNE ARTICLE ATTACHED

fortune071006.pdf 6.95 MB · 14 downloads

 

Related to the above very nice post by @longterminvestor, source LinkedIn, June 29th 2024 :

 

image.thumb.png.9f9e44837b2e708a54acac9b6ff9e64f.png

Edited by John Hjorth
  • 3 weeks later...
Posted

Any recent news driving the share performance lately? Haven't found anything but this mini value / small cap rotation has been excellent for my portfolio.

Posted
1 hour ago, Spooky said:

Any recent news driving the share performance lately? Haven't found anything but this mini value / small cap rotation has been excellent for my portfolio.


safe heaven for index/mag7 investors maybe 

Posted
1 hour ago, Spooky said:

Any recent news driving the share performance lately? Haven't found anything but this mini value / small cap rotation has been excellent for my portfolio.

 

Definitely seems to be a rotation out of the recent mega cap winners and into everything else.  This is just how Berkshire's stock moves though.  Flat for a long time and then it rips to the upside and then it's back to flat for a long time.  My theory for years was that people sold covered calls against their BRK position and when those strikes start getting violated they buy the calls back in rather than pay the tax on getting their stock called.

Posted (edited)
17 hours ago, gfp said:

 

Definitely seems to be a rotation out of the recent mega cap winners and into everything else.  This is just how Berkshire's stock moves though.  Flat for a long time and then it rips to the upside and then it's back to flat for a long time.  My theory for years was that people sold covered calls against their BRK position and when those strikes start getting violated they buy the calls back in rather than pay the tax on getting their stock called.

 

Guilty, but with this pop I am tempted to do it again.

Edited by boilermaker75
Posted
17 hours ago, gfp said:

 

Definitely seems to be a rotation out of the recent mega cap winners and into everything else.  This is just how Berkshire's stock moves though.  Flat for a long time and then it rips to the upside and then it's back to flat for a long time.  My theory for years was that people sold covered calls against their BRK position and when those strikes start getting violated they buy the calls back in rather than pay the tax on getting their stock called.

another factor is XLF flows. When Berkshire has a short term run-up (or down) it's often in tandem w/ XLF (driven by big banks, asset managers, payments, etc)

Posted (edited)
16 hours ago, thepupil said:

another factor is XLF flows. When Berkshire has a short term run-up (or down) it's often in tandem w/ XLF (driven by big banks, asset managers, payments, etc)

 

+1

 

https://www.barrons.com/articles/berkshire-hathaway-stock-1-trillion-market-value-f0050c98

 

"Berkshire stock has been strong this month, gaining about 9% as both value stocks and financials have done well. Berkshire is the largest component of both the Russell 1000 value index and the S&P 500 financial sector."

 

Despite being almost 1T CAP, BRKB is trading like some small cap in the last 5 days:). I like this rotation/unwind from M7/Trump or whatever trade of the last 5 days:)

 

Edited by UK
Posted (edited)

Berkshire´s stock tends to be strong around earnings time. 

The nature of a great business model is that it tends to have great earnings. 😉

Apple´s stock price rise probably helps too.

Edited by Charlie
Posted

Crowdstrike outage, got me thinking if Berkshire write insurance to protect against these of things.   Or whether there would be reinsurance losses due to this. 

Posted
2 hours ago, Whensthepaintdry? said:

Berkshire doesn’t, but I believe Markel does. 

 

Berkshire is very careful about not taking on very much cyber risk but they do write the policies.  Just the other day there was a hiring announcement out of TransRe -https://www.insurancebusinessmag.com/asia/news/reinsurance/transre-bolsters-cyber-division-with-key-promotions-497566.aspx

 

BHSI also offers these coverages as do several other subsidiaries.

 

Posted (edited)

So this is from SA from a few month ago. It does not cover everything and omits some important positives (e.g. recent total operating results, because of very strong insurance performance, or together with other omissions them not buying long term bonds in ZIRP period etc). And author seems to be expecting some perfection after all:), despite stating the opposite. But I think some of his critique and analysis is quite interesting and not that bad/stupid?

 

For what it is worth: https://seekingalpha.com/article/4693091-berkshire-15-years-of-disappointing-acquisitions

 

Please do not shoot the messenger:). Still own some BRKB, but this year/recently reduced allocation to a "core minimum", mainly because of the valuation, although I admit, that WB's warning on utilities earlier this year also scared me a little. Also I am a bit worried, that the way the possible management transition on the horizon is expected to occur at BRK is the best way to do this or one I would prefer.

 

Personally, from a current valuation, I still expect BRK will provide a reasonable buy and hold return in the next 10 years of 6-8 per cent or even more, but doubt it could be >10 per cent, without some major luck. And probability is also very high they will finally have to deal with a management transition in this period (and this again could be an opportunity). Now, this 6-8-10 is nothing tragic at all and price/valuation could overshoot even more (probably ~1.8 BV would be a level for me to get out completely), but I think now it is already out of the exciting territory, at least for more active approach. I get and respect this "do not sell a single share" approach, but not so sure if this is a reasonable thing to do in BRK case this time, especially if your expectations are higher, than mentioned above. And with recent AAPL (wonderful, but probably to expensive) and BAC (probably expensive enough for average at best and not anti fragile business) sales, it seems even Buffett himself is showing this is the the way to go:)?

 

I would also appreciate if anyone could share their thinking or push back on this and maybe also discuss what are his expectation for the next 10 year BRK returns.

 

Edited by UK
Posted
On 7/20/2024 at 1:15 AM, charlieruane said:

Wowee! Any thoughts on the sale, @gfp?

 

It seems like BAC is earning low returns and is getting squeezed between 5.15% on earning assets and 4.2% cost of funding those.  So the trading and other non interest spread businesses are carrying more and more of the weight.  Deposits aren't going anywhere but the yield spread on earning assets really isn't covering the overhead.  With the stock trading up to a decent premium over book value and returns on that book value stuck in the regulated utility range, it just doesn't look great when you consider that whichever the next industry to blow up ends up being, the one thing we know for sure is that it will also hit their bankers.

 

He can't use expected higher corporate taxes in the future as his excuse for last week's selling LOL

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