Additional small purchases last Friday:
https://www.sec.gov/Archives/edgar/data/797468/0000899243220…
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" Additional small purchases last Friday:
Correction. Last Thursday, the 23rd.
Additional small purchases last Friday:…
The news is not large, but I have to give you grudging groaning respect for the thread title.
So Berkshire owns 16.38% of shares outstanding,
and if warrants were exercised would own 23.25% of (more) shares outstanding.
Jim
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Interesting, BRK owned a similar amount of BNSF before making the offer in 2009.
“Berkshire Hathaway surprised the financial world this morning with word it is buying the roughly 77% of Burlington Northern shares it doesn’t already own for a combination of cash and Berkshire Hathaway shares.”
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Jim
Are you ever tempted to piggyback Buffett on OXY or anything else?
Are there any estimates of OXY’s worth at different oil prices such as %50, $60 …?
It’s quite possible that in a year or two, when the Ukraine war has ended and world economy has entered a recession, oil price would be around $50
Are you ever tempted to piggyback Buffett on OXY or anything else?
I don’t piggyback that often.
I made an ton of money on Wells Fargo. Especially on repeated at-the-money cash backed short puts for years.
Profits almost what I paid for my second house.
IBM worked out less well. Ahem. Moving along…
I’ve dipped into BAC and BK when they were cheap, but only briefly.
But, having been burnt so many times, I don’t touch oil and gas personally.
If Berkshire does it, I’m OK with that, but I have very convincing and expensive evidence that I am not skilled in that area.
I think that’s about it?
The main way I piggyback:
I tend never to own a bank or insurer without Berkshire’s seal of approval for its financials;
they have the means, opportunity and motive to make up the numbers during good times.
I’m happy to make up my own mind about reputation however.
Jim
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I made an ton of money on Wells Fargo. Especially on repeated at-the-money cash backed short puts for years.
I followed Buffett into WFC in 2008 and built it into my number one position. It went well until 2016 when the fake account scandal broke out and I made a huge mistake by doubling down, thinking this too would pass. Fortunately I sold majority of it a few months ago. Overall, the profit on WFC is quite good but still trails behind the index.
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Buying continues:
https://www.sec.gov/Archives/edgar/data/0001067983/000089924…
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with Warrants = 247m shares.
(Reuters) - Warren Buffett’s Berkshire Hathaway Inc said it has bought another 9.9 million shares of Occidental Petroleum Corp, giving it a 17.4% stake in the oil company.
Berkshire paid about $582 million for the shares, which it bought between Wednesday and Friday, according to a Friday night filing with the U.S. Securities and Exchange Commission.
Buffett’s company is Occidental’s largest shareholder, now owning 163.4 million shares worth about $9.9 billion.
Its stake is about 60% larger than that of Vanguard, the next largest shareholder, according to Refinitiv data.
Berkshire also owns warrants to buy another 83.9 million Occidental shares for $5 billion.
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I said it several weeks back. Buyout coming at $75/share.
https://www.barrons.com/articles/berkshire-hathaway-occident…
“…That would mean a $2 billion annualized lift to Berkshire’s reported profits with Occidental expected to earn about $10 billion after taxes this year. As with nearly all its other equity investments, Berkshire now reflects just the dividends it gets from Oxy in its financial results. Those dividends received by Berkshire are small at less than $100 million annually. Occidental has a low dividend of 52 cents annually reflecting its focus on paying down debt.
“There is a very strong presumption in the accounting literature that indicates that when an investor owns 20% or more of the voting stock of an ‘investee,’ the investor is able to exercise significant influence over the affairs of said investee. This, in turn, necessitates the use of the equity method of accounting in connection with which the investor includes in its income statement its ‘equity in the net income’ (i.e., its proportionate share of the net income) of the investee,” says New York accounting expert Robert Willens in an email to Barron’s…”
Filled my limit order of $57. Last poll results here revealed 40% of voters see WEB making an offer. Very interesting.
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