Oil Oil and more Oil - tons of capital being allocated irrespective of climate change concerns. Hypocritical.
Did not vote for reports on employee diversity. All talk, no action.
Activision arbitrage is ‘not buying businesses’ but timing the market - nothing wrong with that, just sound hypocritical
Abel ? Ted ? Todd ?
Buying oil hypocritical??
Yeah, it’s not like we don’t need it, I guess…
Activision arbitrage is ‘not buying businesses’ but timing the market
Event-driven arbitrage is the opposite of timing the market. It’s the way to bet on a specific event happening by a specific date. If correct he will make a specific return regardless of what the market does in the meantime.
In the worst case if the Microsoft deal blows up he ends up with a large position in Activision which Berkshire was accumulating at higher prices in Q4 well before the Microsoft deal was announced so the downside isn’t unpalatable.
As several have pointed out, Buffett participating in a post-deal-announcement merger arbitrage is hardly “hypocritical.” He has been doing these since at least the early 50’s and wrote about “work-outs” as they were once known for many years - even explaining that he believed borrowed funds were appropriate in this game in certain situations.
Monsanto and Red Hat are the most recent examples at modern Berkshire.
Event-driven arbitrage is the opposite of timing the market. It’s the way to bet on a specific event happening by a specific date. If correct he will make a specific return regardless of what the market does in the meantime.
Nothing wrong with becoming rich using this method.
However, it is not same as “buying a farmland and stock market shutting down for 10 years”
It is closer to “gambling” than it is to “buying a businesses for long term”
It is closer to “gambling” than it is to “buying a businesses for long term”
Considering that he went out of his way to explain the deal as an arbitrage what exactly is the issue you have with it ?
Any long term investor in Buffett knows fully well that he often does intelligent arbitrage deals when opportunities present themselves.
You can call it a gamble but it is one in which the odds of a good result are very good ( a 25% result from Friday’s close) and the worst case is tolerable ( a stake in Activision). I call that an intelligent investment.
You realize that Greg was on stage? LOL .Also he never talks about what Ted or Todd are buying (stock manipulation) Finally Buffett has also gone over the diversity /Environmental topics. Berkshire will submit them when they are required . The numbers/figures are available on the sub websites .