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Eric Sprague

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  • Valuing Berkshire Via Burlington Northern Santa Fe Railway [View article]
    Yes, but 75% seems low imo. I think BNSF is worth more like 85% of UNP.
    Jan 19, 2015. 12:18 PM | Likes Like |Link to Comment
  • Valuing Berkshire Via Burlington Northern Santa Fe Railway [View article]
    Interesting article.

    Today's market cap for UNP is $98.5 billion. Valuing BNSF at about $74b puts it at about 3/4ths of UNP's market cap. I think BNSF is worth more than 3/4ths of UNP.
    Jan 15, 2015. 06:03 PM | 2 Likes Like |Link to Comment
  • Keeping It Simple In 2015 [View article]
    Cool to see you added to the AAPL position. As you know, I'm long AAPL as well.

    FB is harder for me to value - their stock based compensation is relatively high.
    Jan 7, 2015. 02:06 AM | 1 Like Like |Link to Comment
  • Apple: What Drives Upside From Here? [View article]
    That poll for existing iPhone users is incomplete. I have a Samsung S5 but I'll probably switch back to an iPhone and buy the apple watch when it comes out.
    Jan 6, 2015. 03:47 PM | 4 Likes Like |Link to Comment
  • Warren Buffett's Berkshire Hathaway Portfolio: A Free Cash Flow Analysis [View article]
    Nice article.

    Looking at Apple's consolidated balance sheet in the latest 10-K filing, they have $130 billion in long-term marketable securities and just $29 billion in long term debt. This is important when valuing the company.

    They can return much of this $101 billion to shareholders if there is another repatriation tax holiday like the one in 2004.

    The market cap was about $677 billion when this article was written. As such, one can think of their Market Price per Share as being up to 15% less which means that their free cash flow yield can be thought of as being slightly higher than 7.15%.
    Dec 30, 2014. 02:09 PM | 2 Likes Like |Link to Comment
  • The Difference Between Coca-Cola And Anheuser-Busch [View article]
    Another difference is competition.

    AB InBev is losing market share to craft beers and buying SABMiller won't solve this issue imo.
    Dec 24, 2014. 09:14 PM | Likes Like |Link to Comment
  • Memo To Microsoft: Spin Off Xbox [View article]
    They should spin off bing too.

    Time to focus on their strengths: office, operating systems and server side software
    Dec 23, 2014. 05:09 PM | 1 Like Like |Link to Comment
  • IBM Doing Exactly What Warren Buffett Wanted [View article]
    True, we want the company to buy back shares when the price is low.

    Per the March 3rd cnbc transcript, Warren said this:
    They [IBM] buy 'em [shares] at a good clip, and I-- I like that. But I would like to see the revenues pick up.
    Dec 22, 2014. 05:50 PM | 5 Likes Like |Link to Comment
  • Apple Watch: The Hidden Advantages [View article]
    This is exciting!

    Anyone here remember Knight Rider from 1982?

    David Hasselhoff (Michael Knight) regularly used his watch to talk to his car (KITT). Our cars aren't as advanced as KITT but soon we'll be using watches in all kinds of new ways.
    Dec 17, 2014. 06:28 PM | Likes Like |Link to Comment
  • Time To Eat Your Apple Pie [View article]
    I'm excited about the watch coming out. It will be interesting to see what kind of an impact it has in 2015.
    Dec 15, 2014. 05:51 PM | 3 Likes Like |Link to Comment
  • Understanding How Amazon's Use Of Capital Leases Overstates Its Cash Flow Metrics [View article]
    Nice article! The timing of this is cool for me as I'm in the process of reading Creative Cash Flow Reporting by Charles Mulford.
    Dec 11, 2014. 02:51 PM | 1 Like Like |Link to Comment
  • Is Apple Worth $700 Billion? [View article]
    portatopia and fearless195 have it right. The summary from the author below is misleading:
    "Apple derives almost 90% of its revenue through sales of hardware (iPhone, iPad, iMac, etc.). "

    Whenever people buy these "hardware" devices they are buying an experience with iOS (software). Not recognizing the software component of each purchase is a big mistake.
    Nov 26, 2014. 11:03 PM | 7 Likes Like |Link to Comment
  • Coca-Cola Has A Bigger Distribution System And Higher Margins Than Competitors [View article]
    Thanks, IVI Guy!
    Nov 9, 2014. 07:42 PM | Likes Like |Link to Comment
  • What 'Bendgate' Means For Apple [View article]
    I liked Conan's tweet:
    My iPhone 6 Plus is two days old and it’s already bent. Has anyone else had this issue after leaving their phone on train tracks overnight?
    Sep 26, 2014. 01:45 AM | 2 Likes Like |Link to Comment
  • Time To Get Some Coffee [View article]
    Cool article. I like the graphics.
    Aug 4, 2014. 07:04 PM | 1 Like Like |Link to Comment