Jurgis Posted January 3, 2020 Posted January 3, 2020 With Buffett's and Munger's views on healthcare in US, I would be surprised if they would buy anything healthcare related.
SwedishValue Posted January 8, 2020 Posted January 8, 2020 How big can Buffett go? I have my thoughts but would love some feedback.
Guest longinvestor Posted January 9, 2020 Posted January 9, 2020 How big can Buffett go? I have my thoughts but would love some feedback. I’ll bite...an Apple?
gfp Posted January 9, 2020 Author Posted January 9, 2020 I've been saying he could pull off a deal for ExxonMobil by the time the deal would close. I think that's a realistic 'stretch' goal. Boeing is possible but unlikely at current valuation (but I would be happy to be proven wrong next month..) How big can Buffett go? I have my thoughts but would love some feedback.
rkbabang Posted January 9, 2020 Posted January 9, 2020 How big can Buffett go? I have my thoughts but would love some feedback. MSFT maybe? Gates taking over as Chairman of the Board and Buffet remaining CEO until is no longer able then use whatever succession plan is already in place. And Nadella still running Microsoft.
gfp Posted January 9, 2020 Author Posted January 9, 2020 returning to the topic of sub-trillion-dollar acquisition speculation - Berkshire and/or Berkshire with 3G would be realistic buyers of Thyssenkrupp's Elevator business [ 8 Billion Euros in revenue, 50,000 employees, speculated $20B USD market cap ]. But, of course, the usual consortiums of private equity folks will likely be willing to bid higher. https://www.ft.com/content/490b7c12-1846-11ea-9ee4-11f260415385
John Hjorth Posted January 9, 2020 Posted January 9, 2020 How many years is it, since Mr. Buffet & Mr. Munger had an exchange at the AGM about the size of the next large acquisition? [Two years, three years, or perhaps even more?] What were those gents then talking about? [if I remember correctly the talk was in the triple digits of USD B by Mr. Munger, combined with a good deal of speculative ramblings, based on "Who knows what we'll do!" - [& mind you!]] - If I remember correctly, Mr. Munger implied something in the three digit range of USD B. Where are we now? -Please put away those something USD ~20 B for potentiential insurance claims in a stressed situation, which leaves you around USD ~100B in acquisition capacity. - - - o 0 o o - - - What is there not to like, if you're patient? [patience certainly required!] - - - o 0 o - - - Somehow, I think of it as a geriatric at the age ~90, surveilling and scouting an African Savannah, dressed [naturally] in Khaki Safari dress [with a Khaki hat to provide shadow for the face], scouting the area ..., - moving the sunglasses up on the hat, lips tight, stone face & snake eyed - just pretty un-emotional, & just waiting ... . -You better stay out the line behind him, because his gear is not really [any longer] an elephant gun, more like a Bazooka! No need to get smoked and burned while standing behind him!
cubsfan Posted January 9, 2020 Posted January 9, 2020 And I believe - it was mentioned during that discussion - that for the right situation, use of debt might be used.. so for that reason, I thought the acquisition figure could be in the area of $150B.
CassiusKing1 Posted January 10, 2020 Posted January 10, 2020 Would love to see Buffett and Munger buy Costco.
rogermunibond Posted January 10, 2020 Posted January 10, 2020 Cassius - when Carrefour was selling its 10% (?) stake in Costco back in the 1990s, Berkshire had the opportunity and passed due to Buffett's aversion to retail, despite Charlie's support for it. File that in the errors of omission stack.
CassiusKing1 Posted January 10, 2020 Posted January 10, 2020 Agreed. The revenue from membership dues, margins on the Kirkland Brand and the very sticky, loyalty of members makes this attractive to me.
gfp Posted January 14, 2020 Author Posted January 14, 2020 This is probably bad advice, but could help Berkshire if any of these families actually takes it https://www.bloomberg.com/news/articles/2020-01-14/rich-families-urged-to-sell-their-businesses-before-party-ends?srnd=premium
rb Posted January 31, 2020 Posted January 31, 2020 Cassius - when Carrefour was selling its 10% (?) stake in Costco back in the 1990s, Berkshire had the opportunity and passed due to Buffett's aversion to retail, despite Charlie's support for it. File that in the errors of omission stack. LOL 10% of Costo's market cap is just shy of Carrefour's market cap. File that under boneheaded moves.
Gregmal Posted February 27, 2020 Posted February 27, 2020 Now would be a pretty darn sneaky time to snap up an airline.
Jurgis Posted February 27, 2020 Posted February 27, 2020 Buffett directly said that he won't acquire an airline. But hey...
compoundinglife Posted March 6, 2020 Posted March 6, 2020 Cassius - when Carrefour was selling its 10% (?) stake in Costco back in the 1990s, Berkshire had the opportunity and passed due to Buffett's aversion to retail, despite Charlie's support for it. File that in the errors of omission stack. LOL 10% of Costo's market cap is just shy of Carrefour's market cap. File that under boneheaded moves. Just peak to trough from the financial crisis to date, COST is almost 20% annualized not including dividends. Sigh....
compoundinglife Posted March 6, 2020 Posted March 6, 2020 GM? I don't see it. GM is a value trade for Berkshire IMO. Do we know if its a Ted/Todd or Warren pick? At 2B it could be either? Additionally there might be some conflict of interest issues with the fact that they own dealerships.
Dynamic Posted March 6, 2020 Posted March 6, 2020 Of the 75,000,000 shares of GM held: 26,994,000 shares are pension fund holdings. 48,006,000 are for the benefit of BRK shareholders. Source: 13G/A filing: https://www.sec.gov/Archives/edgar/data/1067983/000119312520038354/0001193125-20-038354-index.htm We can presume that when the newspapers transfer to Lee, a number of the pension plan holdings will move with them and a new SC 13G/A will be filed.
Castanza Posted March 6, 2020 Posted March 6, 2020 That Union and subsequent pension are enough to make me think it's a bad long-term investment.
nspo Posted March 12, 2020 Posted March 12, 2020 Dis- Brand loyalty, pricing power, diverse asset base Costco- sticky business, recurring member fees, perpetual growth from giving value back to customers Just speculation ;)
Aberhound Posted March 12, 2020 Posted March 12, 2020 I suggest he comes forward with a convertible preferred share deal for Boeing as he wears the flag. Meanwhile he tells the government that the financing is conditional on letting Boeing use its Ion engines. It is a good time to crush your competitors.
Uccmal Posted March 12, 2020 Posted March 12, 2020 My bet is that he extorts one or all of the airlines they hold to “save” them. Same terms as GS and GE 10 years ago.
Castanza Posted March 12, 2020 Posted March 12, 2020 My bet is that he extorts one or all of the airlines they hold to “save” them. Same terms as GS and GE 10 years ago. He should buy SAVE :P
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now