Tom Richardson

Wall Street Breakfast: Must-Know News

Regarding the Constellation Energy buyout competition: check out the financing. The Federal Reserve Bank of the US is providing a lending facility to JP Morgan who lends the money to a French owned company (EDF) to take over a US company (Constellation). EDF had the gaul to report that they were using the lending facility to finance the takeover. "I'm from the Government and I'm here to help."

P.S. We taxpayers are bailing out Cerberus who owns Chrysler? They presided over the bankruptcy of Mervyns. We bail them out because they were arrogant enough to think they could turn around Chrysler? Enough is enough.

Berkshire Hathaway Appears Undervalued

It's about time someone looked behind the headlines and did a thoughtful analysis of Berkshire Hathaway. Shame on the headline writers whose work included headlines like: "Berkshire earnings down 18%" and "The Party's over." In addition to the above I would add that all of the recent acquisitions have been financed by cash flow!!! Free cash flow is currently 13 billion. In the very near future that figure will be 15-18 billion. I value the NPV of the cash flow at $180,000 per share. While trite financial writers choose to put no value on Warren Buffet's contribution to the the future of BRK (The Buffett Premium), as a shareholder I say, just watch. We are seeing his added value daily. It is fun to watch. When it is recognized in the stock price it will be even more fun.