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I wonder if he is trying to go below 10% for operational or some other reason. As I remember, there are considerable operation/regulatory issues for Berkshire and/or BAC to hold more than 10% of the bank. Amex is already a bank so getting exception for another Bank is tougher. 
May be regulator are indicating that holding should go below 10% threshold. 

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12 hours ago, valueinvesting101 said:

I wonder if he is trying to go below 10% for operational or some other reason. As I remember, there are considerable operation/regulatory issues for Berkshire and/or BAC to hold more than 10% of the bank. Amex is already a bank so getting exception for another Bank is tougher. 
May be regulator are indicating that holding should go below 10% threshold. 

 

It's possible that is the reason.  Also possible he just wants the privacy of being below 10%.  Berkshire has regulator approval to own up to 25% of BAC but things can change I suppose.  If I had to guess, he just wants to sell the stock.

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13 minutes ago, charlieruane said:

Does anyone know roughly what % of BNSF's freight is coal these days vs. historically?

In the good old days of the last decade it was around 18-20%.  More like 10-12% these days

 

From their Q2

 

“Coal volumes decreased 29% and 25%, respectively, in the second quarter and first six months of 2024 compared with the same periods in 2023 primarily due to lower natural gas prices, which displaces coal as a fuel used by utilities.”

 

https://www.bnsf.com/about-bnsf/financial-information/pdf/performance-summary-2q-2024.pdf

 

 

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On 8/2/2024 at 9:53 PM, sleepydragon said:

I am more curious if the reason why Buffett is he’s bearish on BAC specifically or he sees some danger with the overall economy ?

 

If he sees danger, I would think he and Todd/Ted would be reducing positions too. But again, I think tech stocks are still high, but other stocks are still within the reasonable range.  

 

If the Fed does reduce interest rates, it's generally bullish for the market. Again, I don't remember seeing him thinning positions from an economic PoV. He devised his airline stocks because he didn't like the optics of the bailout that must happen and how it would be perceived as a pass through to him... but, he has been selling off his other bank holdings before he started thinning BAC.

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45 minutes ago, DCG said:

Curious what they see in Sirius XM. Seems like they face way too much competition these days.

Probably they smell a deal coming?

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National Indemnity Q2 NAIC filing.  maybe a coupe of you nerds that like reading these.  The way Citi shares were moved to add capital to West Guard Insurance during the quarter along with other Buffett positions makes it seem more likely that Citi is a Warren Buffett investment and not a Ted/Todd position.  Average price of AAPL shares sold during the quarter was approximately $188.40

 

I'll bet he stopped at 400m shares even.  The stock went sideways while he was a seller and when he stopped selling it was able to go up with the market.

20087.2024.P.Q2.P.O.2.4817539.pdf

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You can see how National Indemnity capital is sometimes used to refinance subsidiaries - Pilot came with a bunch of expensive bank debt and National Indemnity appears to have refinanced them out of most of it at 5.25%.  This stuff gets eliminated in consolidation on the SEC filings since it is between subsidiaries.

image.thumb.png.b4879a3386f61988ae558e38e2bef3c4.png

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52 minutes ago, gfp said:

You can see how National Indemnity capital is sometimes used to refinance subsidiaries - Pilot came with a bunch of expensive bank debt and National Indemnity appears to have refinanced them out of most of it at 5.25%.  This stuff gets eliminated in consolidation on the SEC filings since it is between subsidiaries.

image.thumb.png.b4879a3386f61988ae558e38e2bef3c4.png

 

Thanks for sharing, @gfp,

 

It's very interesting. I have always wondered, why Berkshire hasen't does more of this stuff [called 'intelligent finance' and so]. In the 'total system' there must have been large amounts of net financial costs to save, from a group perspective.

 

[I personally loved to help clients with such stuff earlier in life, before the hair turned grey and started an exodus due to gravitation etc. from a point, where every direction is south bound ...] Very easy money earned for a satisfied and happy client, fairly easy work for a relative huge bill to client, all happy.

 

I suppose this has something to do with both Mr. Buffetts and Mr. Mungers abhorrence for administrative and corporate bloat.

 

I wonder if these transactions has been based on Mr. Abel calling Mr. Jain, or Mr. Abel setting someone up to call Mr. Jain.

Edited by John Hjorth
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Yeah I don't know who called who but Pilot was unique in that it came with some very expensive bank debt that stuck out like a sore thumb in BRK's capital structure.  I'm sure there was some grumbling at Berkshire when Pilot aggressively borrowed and paid out dividends (including dividends to Omaha for its share) and now they have the debt to deal with.   They probably planned to replace the bank loans when they took over 100%.  

 

Nice recent article in the Knoxville paper about the Pilot CEO in case anybody here missed it -

https://www.knoxnews.com/story/money/business/2024/08/07/who-is-adam-wright-pilot-ceo-and-former-nfl-player/74271777007/

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3 hours ago, DCG said:

Curious what they see in Sirius XM. Seems like they face way too much competition these days.

 

With their LSXMA & LSXMK shares, they will own almost 30% of "new" SIRI after the collapse of LSXM... & SIRI into 1 share class. 

Edited by jefke
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Word on the street is that, Buffett’ Apple stake is now a super smooth nice round number rivalling Coka Cola ‘ roundness. 
 

I suppose Tim Cook wouldn’t want to mess that up by doing share-split with odd numbers, going forward. 

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Blaspheme for Berkshire owners to be talking about stock splitting (haha) - of any equity BRK.A or otherwise.  I do understand why BRK.B has split over time and there were valid reasons each time - one being the Burlington transaction. 

 

Splitting stocks is for promoters.  Used to help retail stock salesman make more brokerage commission, now comes in the form of payment for order flow from Robin Hood/Schwab.  One could make argument for management if you want to buy a lot of stock back, splitting will create more liquidity.  I just don't know enough to fully unpack stock splits but curious if others have more insight.  

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2 minutes ago, dutchman said:

do we know if he's exiting bac or if he's just trying to get under 10%?  tia 

 

we don't know.  He had permission to go as high as 25%.  He started selling.  Price went down and he stopped - maybe just temporarily.  He is still above 10% so far.

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10 minutes ago, gfp said:

 

we don't know.  He had permission to go as high as 25%.  He started selling.  Price went down and he stopped - maybe just temporarily.  He is still above 10% so far.

Maybe he’ll randomly sell it down to 400M shares too. 🤔

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4 hours ago, Xerxes said:

Word on the street is that, Buffett’ Apple stake is now a super smooth nice round number rivalling Coka Cola ‘ roundness. 
 

I suppose Tim Cook wouldn’t want to mess that up by doing share-split with odd numbers, going forward

 

Ha! 😅 - -But I have to give with regard to the share numbers owned are totally identical by last reporting.

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4 minutes ago, KPO said:

Maybe he’ll randomly sell it down to 400M shares too. 🤔

That is rather bizarre!  If he's done selling he probably figures it won't be long before Berkshire owns as much or more of AAPL than before he began selling due to share buybacks.

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I don't understand the fixation of the press and this board with the total number of shares. Why wouldn't Buffett sell more Apple in Q3? If he thought $188 was an overvalued price for Apple shares, $225 is even a better price to sell. 

Edited by Munger_Disciple
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15 minutes ago, Munger_Disciple said:

Why wouldn't Buffett sell more Apple in Q3? If he thought $188 was an overvalued price for Apple shares, $225 is even a better price to sell. 

 

I don't think he planned / intended to sell all of his AAPL shares this year so you gotta stop somewhere.  When people saw the even number they figure he stopped.  We'll find out next quarter.

 

The last bit was sold at $207.64 /share average - so he did get a little bit of the AI pop action for $1.3 billion worth.

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