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Matthew Lewis  

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  • Berkshire Hathaway (BRK.B) is set to raise capital, filing a shelf offering to issue an as-of-yet undisclosed amount of senior unsecured debt. The company plans to undertake the issuance on February 1. The plans for the proceeds are up for speculation. [View news story]
    They can't buy back shares at over 1.2 times book value. They are above that now. I would guess its a large acquisition (>$25 billion).
    Jan 29, 2013. 10:18 AM | 1 Like Like |Link to Comment
  • Berkshire Hathaway: Attractive Entry Point For Long-Term Investors [View article]
    They are convertible into each other, they trade basically in tandem.

    1500 to 1 ratio. Current book value is 184.6 billion. 1.5 times book is $276.9 billion or $167,200 per A share or $111.50 per B share.
    Jan 25, 2013. 05:58 PM | Likes Like |Link to Comment
  • Don't Believe The Hype: Apple's Growth Story Is Not Over [View article]
    Thanks for the article.

    Using operating cashflow can be a little misleading when doing this kind of analysis (look at how much Apple benefited from with the accounts payable category this quarter). Using this method over the long term can work well, but I don't like it when comparing two points in time.
    Jan 25, 2013. 12:55 PM | 1 Like Like |Link to Comment
  • Apple As The New RIM [View article]
    A preposterous article.
    Jan 24, 2013. 03:49 PM | 2 Likes Like |Link to Comment
  • San Juan Basin Royalty Trust Cuts Dividend To Virtually Zero; Accounting Errors Partly To Blame [View article]
    That's not true. I worked in a brokerage house that would lend out shares to clients that were not bought on margin all the time. It depends on the broker.
    Jan 23, 2013. 10:58 AM | Likes Like |Link to Comment
  • 3 Reasons Why Investors Should Avoid MetLife [View article]
    Thanks for the article.

    You seem to hit on the interest rate exposure numerous times, yet fail to mention that Metlife has hedged against this risk. They are hedged against low interest rates into 2025 and currently make $500 million each year from low interest rate hedges they put on in 2004. No other competitor has hedged better.

    The discount to book value makes the stock a great buy. Rates will either move up, or competition will be forced to change their premiums, either way the market will eventually normalize.
    Jan 9, 2013. 08:59 AM | Likes Like |Link to Comment
  • Avoid Paying Taxes The Warren Buffett Way [View article]
    What Buffett says and what he actually believes are probably two very different things. The guy knows how to manage money, and part of that is realizing you need to play nice with those in political power.

    He knows what he's doing.
    Jan 8, 2013. 05:57 PM | 1 Like Like |Link to Comment
  • Pres. Obama reportedly won't be making a new budget offer to Republicans today, and will instead reiterate last week's proposal. Stocks have tanked on the news. S&P -1%. Dow -1.1%. NASDAQ -0.7%[View news story]
    This will be interesting. I agree that Obama has more leverage here, but can't help but think he is over playing his hand.
    Dec 28, 2012. 04:26 PM | 1 Like Like |Link to Comment
  • Pres. Obama reportedly won't be making a new budget offer to Republicans today, and will instead reiterate last week's proposal. Stocks have tanked on the news. S&P -1%. Dow -1.1%. NASDAQ -0.7%[View news story]
    Playing hardball.
    Dec 28, 2012. 03:56 PM | Likes Like |Link to Comment
  • Corning Offers Q1 Window Of Opportunity [View article]
    Thanks for the article.

    I own GLW, but I wish authors would stop overstating the importance of the specialty materials segment. It provides a nice mix of revenue and cash flow for GLW, but its earnings don't hold a candle to the display segment. Share loss and margin pressure in the display segment is what should and does drive the stock.
    Dec 26, 2012. 09:02 PM | 1 Like Like |Link to Comment
  • Why Apple Should Announce A $100 Billion Stock Buyback [View article]
    Actually a lot of companies are borrowing money to repurchase stock instead of repatriating cash. Wal-Mart has done it for years and Intel just did a huge bond issue for repurchases.

    Why pay 35% to repatriate cash when you can borrow for 10 years at 3%?
    Dec 26, 2012. 02:58 PM | 1 Like Like |Link to Comment
  • Why Apple Should Announce A $100 Billion Stock Buyback [View article]
    That doesn't always mean they do the right thing. As a shareholder I'd love to have some color on why they need that much cash.
    Dec 24, 2012. 12:06 PM | 1 Like Like |Link to Comment
  • Why Apple Should Announce A $100 Billion Stock Buyback [View article]
    CFO's of companies are often terrible at allocating capital. There's a reason why Warren Buffett takes over the role of capital allocation when he buys up a company.

    I'm not sure how anyone can defend having 71% of a companies assets return less than 1% a year.
    Dec 24, 2012. 11:46 AM | 1 Like Like |Link to Comment
  • Why Apple Should Announce A $100 Billion Stock Buyback [View article]
    You honestly think they need $110 billion in working capital?
    Dec 24, 2012. 09:43 AM | 1 Like Like |Link to Comment
  • Why Apple Should Announce A $100 Billion Stock Buyback [View article]
    I love my companies to be conservative, and I'm an owner of Apple. However, the capital allocation of this company is preposterous. There is no way to defend $125 billion in cash sitting on the balance sheet earning less than 1% interest.

    I'm not saying I agree with a $100 billion buyback, but keeping that much money on the balance sheet earning so little is a disservice to shareholders.
    Dec 23, 2012. 09:39 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
407 Comments
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