BRK could invest $33 billion in 18 months

Plus buyback, the number is close to $70 billions. And there’re still about $150 billions in cash.

https://www.yahoo.com/finance/news/warren-buffetts-berkshire…

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“Moreover, Buffett’s company may soon buy the 8% of Berkshire Hathaway Energy owned by the family of Walter Scott Jr., a Berkshire director until his death last September.”

I suspect this will happen reasonably soon.

My gut is beginning think the chances for one of those ‘greedy-fearful’ thingy’s has a better than average chance of playing out sooner than later.

Moreover, Buffett’s company may soon buy the 8% of Berkshire Hathaway Energy owned by the family of Walter Scott Jr., a Berkshire director until his death last September."

I suspect this will happen reasonably soon.

As I recall, Abel’s 1% can be swapped for cash or Berkshire shares. Probably the same for the Scott interest.

Look for these minority interests to be closed out, and for Abel to join Jain with 9 figures of “skin in the game”.

Cash outlay? Unlikely.

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FWIW, Berkshire share repurchases slowed to approximately $2 Billion worth for the 1st quarter through March 2nd (the proxy record date). Berkshire’s proxy statement (on the BRK website, not yet filed with the SEC last I checked) shows an updated share count. We already saw a share count for 2/14 that showed greatly reduced repurchase activity.

Obviously, more shares were likely to be purchased after March 2nd.

https://berkshirehathaway.com/meet01/2022proxy.pdf

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“As I recall, Abel’s 1% can be swapped for cash or Berkshire shares. Probably the same for the Scott interest.

Look for these minority interests to be closed out, and for Abel to join Jain with 9 figures of “skin in the game”.

Cash outlay? Unlikely.”

Seems like a no brainer for Abel to swap for BRK shares but not so sure for the Scott estate. BHE is currently valued around 90B correct? Would be nice to consolidate all ownership into BRK. Should be an enormous growth area going forward.

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Seems like a no brainer for Abel to swap for BRK shares but not so sure for the Scott estate. BHE is currently valued around 90B correct? Would be nice to consolidate all ownership into BRK. Should be an enormous growth area going forward.

It makes most sense for these shareholders to swap into Berkshire shares (tax free) at a point in time when Berkshire shares are very cheap due to market volatility - since the formula for valuing BHE is not volatile like the stock market.

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Seems like a no brainer for Abel to swap for BRK shares but not so sure for the Scott estate. BHE is currently valued around 90B correct? Would be nice to consolidate all ownership into BRK. Should be an enormous growth area going forward.

It makes most sense for these shareholders to swap into Berkshire shares (tax free) at a point in time when Berkshire shares are very cheap due to market volatility - since the formula for valuing BHE is not volatile like the stock market.

BHE is completely illiquid, and the Scott estate may have heirs and tax collectors looking for a bit of cash. Waiting for BRK to drop may not be the prudent move for an executor.

Whatever BHE’s valuation at the exchange, it will provide a public statement of market value for BHE. I hadn’t seen 90B before – Abel’s share would be $900Million, well ahead of one of his co-vice-chairs;)

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Earworm of the day: They say that Jain caught Abel, rolling loaded dice - Ace of spades behind his ear, and him not thinking twice…

BHE is completely illiquid, and the Scott estate may have heirs and tax collectors looking for a bit of cash. Waiting for BRK to drop may not be the prudent move for an executor.

Whatever BHE’s valuation at the exchange, it will provide a public statement of market value for BHE. I hadn’t seen 90B before – Abel’s share would be $900Million, well ahead of one of his co-vice-chairs;)

BHE has proven to be quite liquid to sell (not to buy) every time the Scott entities wanted some cash. BHE repurchased shares from the Scott family entities in 2019 ($293 million at $654.44/share) and in 2020 ($126 million at $698.61/share - a total common equity valuation of $53.35 Billion for all of BHE)

BHE had 76,368,874 shares outstanding in January 2022.

I think that $90 Billion number was someone speculating that doesn’t have a firm grasp of the organization. The primary acquisition done since the $53 Billion valuation was funded with a $1.65 Billion perpetual preferred investment from Berkshire parent. I think the $90 Billion speculation was comparing BHE to what a public version of BHE might theoretically trade for in the hot market for utility shares. We’ll see after Q1 reports if there is another more recent valuation mark for BHE. The most recent “print” was the 2020 one ($53.35 Billion for the common equity).

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