Buffett/Berkshire - general news

[CassiusKing1]

Tracy Britt Cool leaving Berkshire to start her own firm.

 

https://www.cnbc.com/2019/09/18/berkshire-executive-and-buffett-protege-tracy-britt-cool-is-leaving.html

[WneverLOSE]

Tracy Britt Cool leaving Berkshire to start her own firm.

 

https://www.cnbc.com/2019/09/18/berkshire-executive-and-buffett-protege-tracy-britt-cool-is-leaving.html

 

Interesting to me is that out of the thousands of investment professionals that would kill to be in her position Buffett chose her out of school at the age of 25 (my current age  8))

 

Interview with her from 2018 :

 

One day this forum will have to be called Corner of Berkshire, Fairfax, Boston-Omaha & Tracy Co. with all the new mini Berkshires around

[John Hjorth]

It reads to me like something smaller than the Swedish public listed Investor AB as a part of the whole Wallenberg sphere [market value right now at SEK ~361 B], but still active management, or perhaps like the Danish Schouw & Co A/S [just to keep it minor] :

 

“I want to build a long-term platform and a long-term vehicle to acquire and build businesses,” Cool said in an interview with the WSJ. “There are companies that I think there’s a lot of value in helping them get to the next level, but they’re too small for Berkshire.”

 

- - - o 0 o - - -

 

Ambitions are the cradle of experiences.

[Jurgis]

One day this forum will have to be called Corner of Berkshire, Fairfax, Boston-Omaha & Tracy Co. with all the new mini Berkshires around

 

More likely it will be called Corner of Berkshire Past.

 

Fairfax has not done well.

Berkshire after Buffett ... ???

Boston-Omaha is not something special and likely won't be.

Tracy Co. - we'll see.

[John Hjorth]

One day this forum will have to be called Corner of Berkshire, Fairfax, Boston-Omaha & Tracy Co. with all the new mini Berkshires around

 

More likely it will be called Corner of Berkshire Past.

 

Fairfax has not done well.

Berkshire after Buffett ... ???

Boston-Omaha is not something special and likely won't be.

Tracy Co. - we'll see.

 

A great mix of skeptisism for the future, rear mirror view on future outcomes [- at least to me -], and no trust or belief in the [very competent!] persons [perhaps, perhaps not!] younger than you . ... -Very much like me! [ : - ) ]

[Orchard]

From NY Post:

Cool was named CEO of Pampered Chef, which enlists home chefs to help sell its cookware, in 2014. The company’s revenue has fallen from $320 million in 2015 to $280 million in 2018, according to Direct Selling News.

 

Buffett told the Journal that Pampered Chef’s second quarter revenue was up 19 percent, but failed to mention the revenue losses since Cool — who joined the company as a financial assistant straight from Harvard — has taken the helm.

[Mephistopheles]

From NY Post:

Cool was named CEO of Pampered Chef, which enlists home chefs to help sell its cookware, in 2014. The company’s revenue has fallen from $320 million in 2015 to $280 million in 2018, according to Direct Selling News.

 

Buffett told the Journal that Pampered Chef’s second quarter revenue was up 19 percent, but failed to mention the revenue losses since Cool — who joined the company as a financial assistant straight from Harvard — has taken the helm.

 

Not surprised. It appears Buffett's bias in favor of women reveals itself yet again. Would a male have had the same opportunity and career trajectory right out business school?

[Dynamic]

Maybe you're right, Mephistopheles. Perhaps there's a counterpoint. I think the rapid rise of Ajit Jain, despite not being experienced in the insurance business may be a parallel for someone like Tracy Britt Cool. Perhaps Tracy Britt Cool is just a person with the right stuff to really make a positive difference and impressed right from the start.

[Spekulatius]

Tracy monetizes her experience gained with Buffet . Nothing wrong with this, but no guarantee for success either. The problem with anyone starting out with a BRK copycat is if they can afford to be patient.

 

There are plenty of holding companies with good capital allocators that can be bought at a discount to NAV.

[abitofvalue]

Interesting that WEB already came out and said he wouldnt be investing..

[Spekulatius]

Interesting that WEB already came out and said he wouldnt be investing..

 

Why would he? If she can do deals that are too small for BRK, the gains won’t  be material. If she were to compete with BRK he doesn’t have a reason to invest in her vehicle either.

[Guest]

Interesting that WEB already came out and said he wouldnt be investing..

 

Why would he? If she can do deals that are too small for BRK, the gains won’t  be material. If she were to compete with BRK he doesn’t have a reason to invest in her vehicle either.

 

Where did you guys see this?

 

His personal account is way smaller so I would imagine he would invest with her if he thought she would do better. Look at Munger and Li Lu.

[gfp]

In the absence of any real material Berkshire related news in ages, we can at least read about this interesting real estate development in Omaha that Applied Underwriters is leading -

https://www.omaha.com/money/applied-underwriters-celebrates-work-on-heartwood-preserve-development-touts-natural/article_d4ef8492-37c8-595f-aa64-151f3d20673a.html

 

Here's hoping for "Berkshire Hathaway acquires ExxonMobil" or similar headline sometime soon..

[oscarazocar]

Interesting that WEB already came out and said he wouldnt be investing..

 

Why would he? If she can do deals that are too small for BRK, the gains won’t  be material. If she were to compete with BRK he doesn’t have a reason to invest in her vehicle either.

 

Where did you guys see this?

 

His personal account is way smaller so I would imagine he would invest with her if he thought she would do better. Look at Munger and Li Lu.

 

It was in the stories the day of the announcement.  From WSJ: "Mr. Buffett said he understood Ms. Britt Cool’s decision because he also left a job he loved, at his mentor Benjamin Graham’s investment firm, to work for himself in 1956. He added that he doesn’t intend for Berkshire to invest in Ms. Britt Cool’s new venture."

 

I think he may have said that more reasons than that he didn't think she would succeed.  First, he didn't say that he wouldn't invest, but that Berkshire wouldn't invest.  We have no idea what he does personally; my guess is that he does not invest in other people's funds based on his history.  Can anyone recall a single instance when he did that?  He has never been one to outsource his personal investing.  Second, if Berkshire invested in Britt's new vehicle, that might set a bad precedent.  Buffett doesn't want to give an incentive for people to leave Berkshire, and he probably doesn't want to be in a position of having people leave and investing in some but not others.

[Dynamic]

In the absence of any real material Berkshire related news in ages, we can at least read about this interesting real estate development in Omaha that Applied Underwriters is leading -

https://www.omaha.com/money/applied-underwriters-celebrates-work-on-heartwood-preserve-development-touts-natural/article_d4ef8492-37c8-595f-aa64-151f3d20673a.html

 

Here's hoping for "Berkshire Hathaway acquires ExxonMobil" or similar headline sometime soon..

 

And for those unable to read the story thanks to GDPR, it's also on archive.org here.

[Guest]

Interesting that WEB already came out and said he wouldnt be investing..

 

Why would he? If she can do deals that are too small for BRK, the gains won’t  be material. If she were to compete with BRK he doesn’t have a reason to invest in her vehicle either.

 

Where did you guys see this?

 

His personal account is way smaller so I would imagine he would invest with her if he thought she would do better. Look at Munger and Li Lu.

 

It was in the stories the day of the announcement.  From WSJ: "Mr. Buffett said he understood Ms. Britt Cool’s decision because he also left a job he loved, at his mentor Benjamin Graham’s investment firm, to work for himself in 1956. He added that he doesn’t intend for Berkshire to invest in Ms. Britt Cool’s new venture."

 

I think he may have said that more reasons than that he didn't think she would succeed.  First, he didn't say that he wouldn't invest, but that Berkshire wouldn't invest.  We have no idea what he does personally; my guess is that he does not invest in other people's funds based on his history.  Can anyone recall a single instance when he did that?  He has never been one to outsource his personal investing.  Second, if Berkshire invested in Britt's new vehicle, that might set a bad precedent.  Buffett doesn't want to give an incentive for people to leave Berkshire, and he probably doesn't want to be in a position of having people leave and investing in some but not others.

 

Thanks!

 

It's been a while so I might be mis-remembering this but I think he invested with his nephew either through his fund or bomn.

[John Hjorth]

Competition Policy International [October 2^nd 2019] : US: Hyundai, Kia sue four biggest railroads.

 

 

... BNSF is a unit of billionaire Warren Buffett’s Berkshire Hathaway, but was a standalone company at the time of the alleged conspiracy. ...

[DanielGMask]

https://buffett.cnbc.com/warren-buffett-archive/

 

Buffett in his own words

 

The Warren Buffett Archive is the world’s largest collection of Buffett speaking about business, investing, money and life.

 

- 26 full Berkshire Hathaway annual meetings, going back to 1994, with a highlight reel for each year

- 130 hours of searchable video, synchronized to 2800 pages of transcripts

- 500 video clips covering scores of subjects

- CNBC interviews, a Buffett Timeline, and a Berkshire Portfolio Tracker

[Cigarbutt]

Applied Underwriters sale information -

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/53946178

It appears that the 'story' has evolved (murkier?) with a new buyer and a slightly different price tag.

https://www.insurancejournal.com/news/national/2019/10/16/545668.htm

 

The official line continues to be the "channel conflict" issue but, even if the picture is incomplete, there are red flags that suggest that the issue may have been more 'cultural'.

https://www.consumerwatchdog.org/news-story/flash-report-ricardo-lara-was-it-money-laundering-bribery

https://yubanet.com/california/release-of-calendar-and-public-records-suggest-lara-made-first-contact-in-pay-to-play-insurance-scandal/

[Guest longinvestor]

Extra! Extra! Headline on Marketwatch; That's the smartest piece of stock insight I've read lately!

 

*Berkshire Hathaway Class A stock price target cut to $362,000 from $367,000 at UBS

BY MarketWatch

— 12:16 PM ET 10/17/2019

 

 

  (END) Dow Jones Newswires

  10-17-19 1216ET

  Copyright © 2019 Dow Jones & Company, Inc.

[Cigarbutt]

https://www.insurancejournal.com/news/national/2019/10/21/545886.htm

This is not going according to plan and there may be more than a fly in the ointment.

[gfp]

Acquisition at Marmon (another from the Pritzker family)

https://www.marketwatch.com/press-release/marmon-acquires-majority-interest-in-colson-medical-companies-2019-11-01?siteid=bigcharts&dist=bigcharts

[Viking]

Extra! Extra! Headline on Marketwatch; That's the smartest piece of stock insight I've read lately!

 

*Berkshire Hathaway Class A stock price target cut to $362,000 from $367,000 at UBS

BY MarketWatch

— 12:16 PM ET 10/17/2019

 

 

  (END) Dow Jones Newswires

  10-17-19 1216ET

  Copyright © 2019 Dow Jones & Company, Inc.

 

So Berkshire’s largest equity holdings (Apple and big US banks) are on fire. And we look to be entering a hard market in isurance (which will benefit diciplined operators like BRK in a big way). US economy continues to chug along... all this = price cut for BRK. :-)

[Gregmal]

I put on a quick trade here today. It seems this has lagged everything, including some of the stuff mentioned above regarding its larger holdings, not to mention the broader market. The stock traded at levels we know they were buying back stock at, into the Q3 close. While I am sure Warren doesnt fret what others think or are saying about him, I am sure he 's not totally deaf or blind, even at 90+. So in other words, I think theres more negativity baked into this than necessary, and that Mr. Market could be pleasantly surprised by whats reports, in which case, Im looking for a relatively risk free $5-10 a share in short order. As always, I could be wrong, but in that event, theres worse things to own.

[boilermaker75]

I put on a quick trade here today. It seems this has lagged everything, including some of the stuff mentioned above regarding its larger holdings, not to mention the broader market. The stock traded at levels we know they were buying back stock at, into the Q3 close. While I am sure Warren doesnt fret what others think or are saying about him, I am sure he 's not totally deaf or blind, even at 90+. So in other words, I think theres more negativity baked into this than necessary, and that Mr. Market could be pleasantly surprised by whats reports, in which case, Im looking for a relatively risk free $5-10 a share in short order. As always, I could be wrong, but in that event, theres worse things to own.

 

I have a similar take and put on a little more conservative trade. Yesterday morning I wrote 210-strike Nov 8 expiration puts.