Aug. 15, 2014, 3:38 AM
- Berkshire Hathaway (BRK.B), (BRK.A) disclosed a $366M stake in cable TV operator Charter Communications (NASDAQ:CHTR) in the second quarter, according to a new regulatory filing. Shares of Charter have now rose more +2% in after-hours trading.
- The filing also detailed other new investments including a 1.3% raised stake in Wal-Mart (NYSE:WMT), and other increased holdings including IBM (NYSE:IBM) and Suncor Energy (NYSE:SU).
- However, Berkshire Hathaway reduced its stake in several companies, among them DirecTV (NASDAQ:DTV).
Aug. 13, 2014, 3:44 AM
- Berkshire Hathaway (BRK.B), (BRK.A) has hired two senior executives from AIG's (NYSE:AIG) Asia operations to boost its insurance business in the region.
- The company has recently put a large effort on expanding its businesses by moving beyond its core reinsurance operations. In July, it entered the fiduciary insurance business and hired AIG's VP of fiduciary liability.
- Additionally, Berkshire Hathaway Specialty Insurance, the company's commercial insurance business, is applying for licenses from regulators in Sydney, Hong Kong, Singapore and Europe.
Aug. 4, 2014, 10:05 AM
- Cash residing in Berkshire Hathaway's (BRK.B +1.3%), (BRK.A +1.1%) coffers rose to $55.5B as of June 30, more than double the amount Warren Buffett has said he likes to keep on hand should the company's insurance units face unusually large claims.
- Berkshire's size is not just a hindrance to finding a needle-moving deal, but so is the perky stock market. Also, Berkshire isn't the only one out there looking for deals. "The amount of dry power is unprecedented," says a private-equity advisor, and the pile of money (estimated at $1.16T) has led to warnings from Blackstone's Tony James and Apollo Global's Josh Harris about paying too much for acquisitions.
- Previously: Berkshire Hathaway reports Q2 results
Aug. 1, 2014, 6:28 PM
- Berkshire Hathaway (BRK.A, BRK.B): Q2 operating earnings per Class A equivalent share of $2,634 (+10% Y/Y) beats by $149.
- Net earnings per Class A equivalent share of $3,889 (+41% Y/Y).
- Revenue of $49.76B (+11% Y/Y).
- Book value per Class A equivalent share of $142,483 (+3% Q/Q).
- Press Release, 10-Q Filing
Jul. 25, 2014, 6:36 PM
- Berkshire Hathaway Energy's (BRK.A, BRK.B) application to buy SNC-Lavalin's (OTCPK:SNCAF) AltaLink power transmission unit wins preliminary approval from Canada's government.
- As part of the approval, Berkshire agrees not to cut jobs and that AltaLink - Alberta's largest regulated electricity transmission company - will remain locally managed with headquarters, senior management and operations remaining in the province.
- The C$3.2B purchase still needs approval from Alberta's utilities commission.
Jul. 23, 2014, 1:01 PM
- One of The Oracle's crisis-era high-yield investments could soon end as a post-earnings rally for Dow Chemical (DOW +3.4%) brings the stock above $53.72 for the first time in nine years. Should the shares close above that price for 20 trading days in a 30-day window, Berkshire's (BRK.A, BRK.B) $3B preferred stake in Dow could be converted into common stock.
- The preferred stock is expensive for Dow as it carries an 8.5% yield, meaning $255M in dividends annually paid to Berkshire. Of course a conversion would mean dilution, but "people have come to view the dilution from the preferreds as a manageable issue," says UBS's John Roberts, thanks to strong earnings and share repurchases.
- Previously: Dow Chemical beats estimates amid sales gains across businesses
Jul. 1, 2014, 12:02 PM
- Miami-based WPLG-TV is added to Berkshire Hathaway's (BRK.A, BRK.B) media holdings after a roughly (tax-advantaged) $1.1B share swap deal. In addition to the ABC affiliate, Berkshire got back 2,107 of its own Class A shares, 1,278 of its Class B shares, and roughly $328M in cash from Graham Holdings (GHC +0.2%). In return, Berkshire delivered 1.62M shares of Graham Holdings back to Graham Holdings.
- The Berkshire shares are valued at about $400M and the TV station at $364M.
- The deal ends Warren Buffett's long association with Graham Holdings, known as the Washington Post Co. before selling its flagship newspaper to Jeff Bezos. Buffett first bought into the company in 1973.
- Previously: Buffett and Graham put deal on paper
Jun. 24, 2014, 12:48 PM
- Warren Buffett’s BNSF Railway (BRK.A, BRK.B) and Canadian Pacific Railway (CP) face a June 27 deadline to say how they will clear a backlog of grain shipments that has frustrated farmers for months.
- The U.S. Surface Transportation Board is ordering the railroads to outline by then how they will deal with service disruptions, including a timeline for doing so, and to subsequently provide weekly updates about their progress.
- This year's unusually cold winter slowed rail networks in the U.S. and Canada, forcing railroads to run shorter trains and aggravating congestion on a system already dealing with increased shipments of crude oil from North Dakota's Bakken Shale region.
Jun. 23, 2014, 3:11 PM
- Large investments in common and preferred stocks, as well as an "aggressive acquisition strategy," pose risks, but earnings stability offsets those concerns, says S&P, affirming its ratings on Berkshire Hathaway (BRK.A, BRK.B) - AA/A-1 counterparty credit, and AA+ insurance financial strength - but boosting the outlook to stable from negative.
Jun. 19, 2014, 12:03 PM
- The system will be the only real-time, regional one of its kind in the West, and will be able to automatically dispatch power every five minutes from plans with enough power to supply 51.6M homes. The California Independent System Operator and PacifiCorp expect this to be a first step toward an organized market across the entire West, where 38 authorities now manage their own grids.
- PacifiCore is a subsidiary of Berkshire's (BRK.A, BRK.B) Berkshire Hathaway Energy Co. Its sister in Nevada, NV Energy - also now owned by Berkshire - is applying to join the same "energy imbalance market" next year.
Jun. 9, 2014, 3:41 PM
- “We’ve poured billions and billions and billions of dollars in retained earnings, and several billion of additional equity,” into the energy business, says Warren Buffett, speaking at the Edison Electric Institute convention in Las Vegas. “And we’re going to keep doing that as far as the eye can see.”
- Reducing Berkshire Hathaway's (BRK.A, BRK.B) reliance on things like insurance and stock-picking, Buffett has moved toward capital-intensive industries like energy and transportation over the past decade-plus, and Berkshire Hathaway Energy has $70B in assets today. "So far we've stayed rich," he says.
Jun. 9, 2014, 12:31 PM
- With a 2.91% gain in May, REITs outperformed the Dow, S&P 500, and Russell 2000, but fell shy of the Nasdaq's 3.1% gain. Leading the way for REITs were infrastructure plays, returning 6.55% thanks to strong demand from wireless carriers as they transition from 3G to 4G, writes Trepp's Susan Persin.
- Speaking last week at NAREIT's REIT Week, Crown Castle's (CCI) Ben Moreland also noted boosted demand from first responder/public safety networks.
- Manufactured housing REITs returned 5.03 in May, and UMH Properties management - also at REIT Week - noted shipments are low by historical standards and financing remains a challenge even with Warren Buffett being a fan of the sector: Berkshire Hathaway (BRK.A, BRK.B) owns the two dominant lenders. Other players in manufactured housing: SUI, ELS.
- ETFs: IYR, VNQ, DRN, REZ, URE, SRS, ICF, RWR, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, IFNA, WREI
Jun. 5, 2014, 11:41 AM
- Union Pacific (UNP) and BNSF Railway (BRK.A, BRK.B) are seeking to prevent disclosure of details about oil shipments through Washington state, despite a U.S. government order to provide the information in the wake of several oil train accidents.
- The two railroad companies last Friday sent the state confidentiality agreements aiming to restrict the information to emergency response groups for planning purposes only; the state's Emergency Response Commission instead presented alternative agreements the railroads say they are reviewing.
- BNSF says it would comply with the federal order but believes the information is "security sensitive and confidential, intended for people who have ‘a need to know’ for such information, such as first responders and emergency planners."
May. 28, 2014, 4:37 PM
- A joint venture of Berkshire Hathaway (BRK.A, BRK.B) and Leucadia National (LUK), Berkadia Commercial Mortgage purchases Phoenix-based Keystone Commercial Capital, which has mortgage banking offices in Boston and San Diego, as well as its hometown.
- Keystone co-founder Charlie Williams will continue to run the company.
- Berkadia is third-largest commercial and multifamily mortgage servicer, with a portfolio of over $229B as of March 31. It was created by Berkshire and Leucadia from the ashes of bankrupt Capmark Financial Group in 2009.
May. 27, 2014, 11:27 AM
- Noting that Berkshire Hathaway's (BRK.A, BRK.B) Warren Buffett has suggested he will hunt for his next big acquisition among energy companies, Reuters speculates that strong candidates that fit Buffett's style could include Baker Hughes (BHI), Williams Partners (WPZ) and Pinnacle West Capital (PNW).
- BHI has a fat ~$30B market cap but is trading at a discount to peers on several key metrics, WPZ sports the competitive advantage of its ownership of the Transco gas mainline which runs from Texas to New York, while PNW may be on the smallish side but offers strong cash flow from operations and reasonable debt.
May. 22, 2014, 8:34 AM
- The move by Susep - Brazil's insurance regulator - allows Berkshire Hathaway (BRK.A, BRK.B) to operate in the country as an "eventual reinsurer," i.e. to do business there without having a representative office.
- In Brazil, there are three classes of reinsurers - local, admitted, and eventual. Eventual reinsurers must have global net assets of at least $150M and be rated a notch above the minimum investment-grade rating.
BRK.A vs. ETF Alternatives
Berkshire Hathaway Inc is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.
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