Berkshire Hathaway: Trading At An Estimated 11.6x Earnings With An Intrinsic Value Of $180/Share
Left Shark Investing • 232 Comments
Left Shark Investing • 232 Comments
Thu, Jul. 14, 3:02 PM
- "Buffett has been clear that he likes infrastructure plays in general and he likes utilities," says Bloomberg's Kit Konolige. "They have stable cash flows and they pay dividends. He would appear to believe they are not going away anytime soon.”
- According to Bloomberg, Berkshire Hathaway (BRK.A, BRK.B) has joined NextEra Energy (NYSE:NEE) as a top contender for Energy Future's Oncor Electric Delivery, with valuations in the $18B area.
- The process is fluid, say Bloomberg's sources, and the leading bidders have switched places several times.
Wed, Jul. 13, 10:18 AM
- Southeast Portland neighbors who live near Precision Castparts ((BRK.A +0.2%), (BRK.B +0.2%)) have sued the company over what they say is a "plume" of air pollution.
- As The Oregonian reports, the neighbors want the company "to clean up millions of pounds of nickel, chromium, arsenic and other toxic pollutants that they say have settled upon their neighborhoods and increased their chances of cancer and other health problems."
- The neighbors are seeking a class for the case that could add 5,000 residents as co-plaintiffs. They filed the case in Multnomah County Circuit Court.
Tue, Jul. 12, 2:21 AM
- Amazon (NASDAQ:AMZN) surged past Berkshire Hathaway (BRK.A, BRK.B) to a market cap of about $356B on Monday, becoming the fifth largest U.S. company (Berkshire's market value currently sits at $355B).
- The news comes before Amazon's second annual Prime Day. Ahead of the big celebration, the company said it added 19M U.S. Prime members since last year's inaugural event, equating to growth of 43%, for a total 63M members.
Fri, Jul. 1, 4:08 PM
- Berkshire Hathaway (BRK.A -0.3%, BRK.B -0.5%) has applied to the Fed to allow it to raise its holdings in Wells Fargo (WFC -0.6%) above 10%.
- The company doesn't intend to take on more shares of the bank at the moment, it says, or to merge it with others, and “Berkshire does not have any specific transaction or dollar value in mind with respect to any such potential purchases," the company said in its application.
- No other top bank has a single investor with a holding this size. Warren Buffett disclosed in March that Berkshire's stake hit 10% due to bank buybacks.
- The Berkshire investment in Wells Fargo stands at $23B based on yesterday's closing price, and it was attained at average price of $25.46 vs. today's $47.03.
Tue, Jun. 28, 3:58 PM
- A head-on collision of two freight trains in the Texas panhandle this afternoon caused a massive explosion and prompted an evacuation from the area.
- The two BNSF Railway (BRK.A, BRK.B) trains were on the same track when they collided near the town of Panhandle, northeast of Amarillo; each train carried two crew members, and three of the people have not been found.
- Few other details are available as emergency responders continue to assess the damage.
Mon, Jun. 27, 5:38 PM
- NextEra Energy (NYSE:NEE) has offered to buy Energy Future Holdings' Oncor power utility and is closest to reaching a deal among at least seven companies that have expressed interest, Bloomberg reports.
- Berkshire Hathaway (BRK.A, BRK.B) and Edison International (NYSE:EIX) are among the others that have expressed interest in buying Oncor, which could be valued at $17B-$18B, according to the report.
- NEE reportedly has proposed to buy Oncor with a combination of cash and debt, and its offer has exceeded a failed proposal from Hunt Consolidated in which investors would have had to raise more than $12B and cancel billions in debt.
Mon, Jun. 20, 2:41 PM
- Insurance Commissioner Dave Jones finds California Insurance Company - a Berkshire Hathaway (BRK.A, BRK.B) unit - filed one set of rates and insurance policies with the Department of Insurance which it then sold to Shasta Linen, and then followed by having another Berkshire company sell Shasta a second insurance policy with different rates and terms that had never been submitted for review.
- Eventually, Shasta was hit with hundreds of thousands of dollars in unexpected workers comp costs. Jones: "This is a case of if it sounds too good to be true, it probably is."
- As a result of the decision, regulators will have a look to see if the Berkshire unit is selling other unfiled insurance policies.
Fri, Jun. 17, 11:48 AM
- According to a regulatory filing from Berkshire Hathaway's (BRK.A, BRK.B) Geico unit, the company purchased 9.81M shares of Apple (AAPL -1.9%) in the period ending March 14 for about $976M - an average price of $99.49 each.
- The holding was likely initiated by one of The Oracle's investment managers - Todd Combs or Ted Weschler.
- After the buys, the stock price rose as high as $112 by mid-April, but has slid back to $95.71 currently.
- Previously: Buffett buys Apple (May 16)
Tue, Jun. 14, 2:36 AM
- The connection between Quicken Loans founder Dan Gilbert and Warren Buffett became evident last month with news of their surprise bid for Yahoo, but the two men have another business connection that hasn't been previously reported.
- Berkshire (BRK.A, BRK.B) owns a company called Vanderbilt Mortgage and Finance, which buys mortgages for traditional houses exclusively from Quicken.
- "There could well be more business relationships in the future," Buffett told Reuters.
Tue, May 24, 2:10 PM
- Berkshire Hathaway (BRK.A, BRK.B) now owns nearly 15% of Phillips 66 (PSX +2.2%) after buying nearly 643K shares of the company, worth $64M, over the past week.
- Warren Buffett's company now owns ~76.37M PSX shares, a significant jump since the end of 2015 when it owned 61.5M shares.
- Now read Phillips 66: Why Buffett's Berkshire Hathaway continues to fill-up with it
Read more here: http://www.miamiherald.com/news/business/article79506287.html#storylink=cpy
Mon, May 16, 7:53 AM
- Alongside Berkshire Hathaway's (BRK.A, BRK.B) roughly $1B new stake in Apple in Q1, the company slashed its ownership in Procter & Gamble by 99% to 315K shares, and completely exited its 46.6M share holding in AT&T (NYSE:T).
- Berkshire raised its stake in Phillips 66 (NYSE:PSX) by 23% to 75.6M shares.
Mon, May 16, 7:40 AM
Sun, May 15, 3:31 AM
- On Friday, news broke that Berkshire Hathaway (NYSE:BRK.A) chairman Warren Buffett is backing a consortium that includes Quicken Loans founder Dan Gilbert in a bid for Yahoo (NASDAQ:YHOO).
- A successful bid would be a relatively rare journey into digital media for Buffett. But Rick Edmonds of Poynter Institute says Buffett’s history of betting on struggling companies that wield a large user base could work in Yahoo’s favor. “It’s kind of consistent with Buffett’s pattern of buying things that are out of favor, undervalued and have a big customer base,” he says. “The paradox is Yahoo's huge, it remains huge, and it's got a lot of customers. It's not the case customers are fleeing them right and left, it's just that no one can get a good pattern of growth."
- Note that former Yahoo president and CFO Susan Decker is now a director at Berkshire. Last month she said Yahoo’s next owner should "create a distinction in consumers' minds about why they love Yahoo still,” and that doing so would be better if Yahoo is "private or part of a much larger corporation." It’s possible that with Decker’s input, Buffett would look to rehire former Yahoo executives such as Ross Levinsohn.
- It’s possible that the consortium has an eye on Yahoo Finance. Sources say Gilbert has shown interest in that unit. Buffett also credited Yahoo with doing a “terrific” job of live streaming Berkshire’s shareholder conference, during which he noted BRK had been slow to adapt to new technology.
- Source: Reuters
- Now read A Shotgun Wedding For Yahoo! (Podcast)
Fri, May 13, 6:46 PM
- Warren Buffett (BRK.A, BRK.B) is in on the second round of the auction for the core assets of Yahoo (NASDAQ:YHOO), along with Quicken Loans' Dan Gilbert, according to Reuters' Greg Roumeliotis.
- Yahoo is flat in after-hours action so far.
- Buffett is backing a consortium bidding for the assets that includes Gilbert, sources told the organization.
- Updated 6:55 p.m.: And Yahoo is now up 1.2% after hours.
Mon, May 9, 11:58 AM
- Six energy companies announce the official launch of Grid Assurance, an independent company providing transmission sparing solutions for critical electric transmission equipment.
- The company is founded by affiliates of American Electric Power (NYSE:AEP), Berkshire Hathaway (BRK.A, BRK.B), Duke Energy (NYSE:DUK), Edison International (NYSE:EIX), Eversource Energy (NYSE:ES) and Great Plains Energy (NYSE:GXP) to enhance grid resiliency and give electric transmission owners faster access to long-lead time critical equipment necessary to recover from catastrophic events that could impact the U.S. electric grid.
- Michael Deggendorf, senior VP of Kansas City Power & Light, is named Grid Assurance CEO and will oversee the formation and operations of the company.
- Now read WSJ: Utilities seek to store and sell essential parts for disasters
Fri, May 6, 4:17 PM
Berkshire Hathaway, Inc. engages in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Its insurance and reinsurance business activities are conducted through... More
Industry: Property & Casualty Insurance
Country: United States
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