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John McCoy

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  • What Is Berkshire Hathaway Really Worth? A Comprehensive Look [View article]
    "There's also the problem that BRK is a very investor-unfriendly company."

    How on Earth does anyone consider a 19.7% compounded return over the last 48 years to be "shareholder unfriendly"?
    Mar 27 08:10 PM | 19 Likes Like |Link to Comment
  • Berkshire: Has Buffett Lost His Touch? [View article]
    The last 5 years have been strong up years, ending with a 30% gain for the S&P in 2013. Due to the ever increasing size of BRK, Buffett himself has said that it will be nearly impossible for Berkshire to outperform the index in up years, but that he fully expects the company to outperform in down years. I'll gladly use a quality, highly profitable and stable company like Berkshire as a hedge for the rest of my portfolio. As Buffett says, it may reduce our overall returns a bit, but it helps us sleep well at night. I'm sticking with BRK.
    Mar 2 08:12 AM | 8 Likes Like |Link to Comment
  • The Number 1 Risk To Berkshire Hathaway [View article]
    Interesting theory, but you have to remember that Berkshire is not run in the same manner as most other large corporations. The Exxons, Walmarts and Microsofts of the world are all large corporate entities, and the larger they become, the harder it is to move and grow, much like a person who keeps getting fatter and fatter - sooner or later they are unable to walk.

    Berkshire is different in that, for the most part, it is a collection of smaller, operating companies running independently of the mother ship, with very little in the way of directives and control coming out of Omaha. This structure pretty much allows the individual management teams to concentrate on growing and improving profitability in their own little corners of the empire. And remember, Berkshire's operating companies and management teams tend to be among the best in their respective industries! Remember what Buffett said shortly after the BNSF aquisition - "Now Matt Rose doesn't have to worry about satisfying Wall Street and can concentrate on running a railroad." And that's what they do, grow their businesses, improve profitiability, and make small, bolt on aquisitions of their own.

    This unique structure also allows Omaha to do what it does best. Rather than spending his time making decisions about how to run a railroad, or a utility company, or a car insurance company, Buffett is free to spend his time picking stocks, investing the insurance float and stalking the next elephant sized aquisition. This is what makes Berkshire a different animal than any of the other companies you compare it to, and is the reason why Berkshire will continue to grow larger and stronger where others sputter.
    May 6 07:17 PM | 6 Likes Like |Link to Comment
  • Jamie Dimon is threatening to leave JPMorgan (JPM) if stripped of the Chairman role, sources say. [View news story]
    Jamie Dimon is not a megalomaniac. After all, it's not bragging if you can do it, right? Dimon has proven beyond a shadow of a doubt that he is the best bank CEO is America, if not the world. Of course the London Whale loss was a big one, but it was nothing more than a speed bump compared to the meltdown suffered by other banks just a few years ago - a near depression that Dimon navigated JPM through without missing a beat.

    Dimon has done a trememndous job at JPM and has consistently delivered enormous profits to the company, provided jobs for tens of thousands of people, and created incredible value for shareholders - even in the quarter in which they wrote off the London Whale loss! His leadership is exactly what we seem to be missing in Washington DC these days, which is perhaps the reason he has so many policial enemies.

    And besides, given what's in the news today about IRS political intervention and the mstakes made in Benghazi, who are our politicians to be pointing fingers atanyone? IMHO, if one wants to see some REAL megalomanics, one needs only look south of Wall Street down in Washington DC.
    May 12 09:46 AM | 6 Likes Like |Link to Comment
  • Bank Of America Has Failed Shareholders [View article]
    Share buybacks are the best way to return cash to the shareholders when shares are priced at a significant discount to book value, as is the case with BAC. In fact, BAC buying back shares is the perfect example of how and when buybacks should be done. On the other hand JPM, should have increased their dividend much more than they did instead of announcing sich a large buyback, as their shares trade much closer to book.

    Another tremendous example of the proper use of share buybacks is ACAS, having bought back tens of millions of shares over the last few quarters at the expense of dividends, resulting in rising share price AND book value.

    While a dividend increase would have been welcomed, the best way for BAC to deliver shareholder value is to reduce the shares outstanding at the current discount, which should help get us closer to that $18 share value. Dividends should be increased once the share price trades much closer book value.
    Mar 17 03:11 PM | 6 Likes Like |Link to Comment
  • Ford Is Going To $40 [View article]
    There's nothing hilarious about it, and the're almost halfway there to begin with. Ford is really just beginning to hot on all 8 cylinders right now, making fantastic cars and trucks (I LOVE my 2012 Taurus), leading in sales here in the US, growing in Asia, and continuing to inprove the balance sheet. Europe just needs to start turning around and Ford will be First On Race Day. I also see them contniuing to improve the already solid dividend, and I can see this stock going to $40 easily in 5 years.

    Nice article SS, thanks!
    Jul 9 03:26 PM | 4 Likes Like |Link to Comment
  • Jamie Dimon is threatening to leave JPMorgan (JPM) if stripped of the Chairman role, sources say. [View news story]
    Anyone foolish enough to say "we hardky knew ye" about Jamie Dimon leaving is obviously NOT a shareholder. Short perhaps, or maybe just a left wing political stooge, but not a true shareholder. No shareholder, myself included, wants Dimon to leave JPM. The fact that he's attraced so many policial enemies show you just how good he truly is.
    May 12 09:30 AM | 4 Likes Like |Link to Comment
  • Why You Need To Buy Freeport [View article]
    I agree, FCX is a compelling buy right now, however I have a much higher target price in mind - $55. This stock has a history of fast moves, and I believe the slightest signs of improving copper demand will sent this up quickly. With the strong balance sheet, and with the current yield, I'm comfortable holding FCX long term and won't sell until $55 or higher. Great article too, thank you.
    Jul 22 08:43 AM | 4 Likes Like |Link to Comment
  • Bank Of America: Don't Wait For The Robins (Update) [View article]
    Great article. I agree on your call for a $20+ share price in 3-5 years, and on the improved dividend. I continue to add to my long position on all the dips and will hold for as long as it takes. This one is a long term winner. Thanks.
    Jul 18 09:15 PM | 4 Likes Like |Link to Comment
  • Bank of America Corp declares $0.05 dividend [View news story]
    Actually, BAC will now yield approx 2.4% on my cost basis of $8.38, not great but right in the mix with the other banks, so I'm happy. Going forward, we should see continued dividend increases at least yearly for the forseeable future, which actually makes BAC a dividend growth stock. Crazy, huh?

    I must admit that I'm disappointed that they dropped the buybacks, but they'll add that back in next spring. I can see BAC at $20 to $25 and paying $1 to $1.25 yearly dividend in 3-4 years. I'll wait, thank you.
    Aug 6 03:51 PM | 3 Likes Like |Link to Comment
  • This Time It Is Different - Americans Are More Pessimistic [View article]
    Look for snack food companies like PEP and MDLZ to do well due to the "munchie factor."
    Mar 8 02:51 PM | 3 Likes Like |Link to Comment
  • Buffett's Big 5 Stocks: Bank Of America A Keeper? [View article]
    You and me both Lordbru, good job buying that low and staying long. I'm thinking we're going to see the first dividend increase next quarter.
    Mar 6 09:42 PM | 3 Likes Like |Link to Comment
  • Buffett's Latest Letter Drops This Weekend [View article]
    That's some serious wishful think there UncleLongHair. I can see your rational - stocks are at all time highs, Berkshire stock is above his stated 120% of BV buyback level, and his lack of recent success at hunting the "elephant" aquisitions, Heinz notwithstanding. But I just don't see him reversing 40 plus years of no dividend policy, especially after everything he wrote about it in last years letter.
    Feb 28 06:39 PM | 3 Likes Like |Link to Comment
  • Will Ford's Stock Catch Up With The Company? [View article]
    Fords dividend is NOT .10 cents per quarter. They announced a 25% dividend increase to .125 cents per quarter on Jan 9th. Yiels as of yesterdays closing is a VERY repsectable 3.18%.
    Jan 28 12:17 PM | 3 Likes Like |Link to Comment
  • Fannie Mae And Freddie Mac, Short-Term Trade Or Deep Value Investment? [View article]
    Gamble is the right word, that's for sure. It's one thing to invest in a company with an uncertain financial future, but when the uncertainty is poltical, that's a completely different story, and depending on Congress to use common sense is just plain crazy. On the other hand, the potential upside is VERY compelling, and may be worth taking a chance on a possible life changing investment. Oh, what to do!
    Mar 25 08:46 PM | 3 Likes Like |Link to Comment