Option Trader

Four Tech Companies with Tremendous Balance Sheets

Berkshire Hathway is one of those delightful exceptions to the rule. Agreed, in hindsight, it seems like a good investment, but the point still remains that an investment is in a philospohy of working and not in the name of a company. And the Goldman and GE deals are with BH but a totally different BH from the early one. It is a true investment company now.
Betting on companies moving into non traditional areas is a deceptively high risk play, but a valid strategy nevertheless.


On May 26 09:43 PM Dan Braem wrote:

> Why would someone invest in a textile mill company that manages an
> equity portfolio? Unfortunately, using your logic would have cost
> any early B.H. shareholders (post Warren Buffett) millions of dollars.
>
>
> Sometimes companies with capital can get deals that other companies
> and other individuals cannot. I would refer to the Berkshire Hathaway
> deals with Goldman and G.E.
>
> In general, I agree with you though. If a company isn't a great allocator
> of capital, then return any excess to shareholders. Simple. I would
> be an investor in Microsoft if they shared this philosophy.

This Chart Can Kill Any Bull

Sorry if i was unclear, i was talking of volatility, not volume.


On May 20 06:38 AM Paul Harper wrote:

> I don't think we can get all happy about the market on volume, Monday
> & Tuesday trading very thin ... the finance houses all coming
> out & recommending each other yesterday was a joke.
> WFC has almost 95% institutional ownership ... have a look at the
> comparison between puts & calls at the moment ... what a sham
>

Four Tech Companies with Tremendous Balance Sheets

Going back to basics, why would i want to invest in a tech company managing an equities portfolio? I can do that myself and make a portfolio which is best suited for me rather than being forced to invest in a predefined mix. GEICO was a different case with an asset managment mandate and all. A tech company has no justification to channel cash into equities save for some strategic purposes. Spare cash, IMHO, should be ploghed back to ramp up R&D or just given out as dividends. A warchest is good thing but spare cash to the tune of ~1.5 times total liabilities is just money sitting idle.


On May 22 09:39 AM Dan Braem wrote:

> Option Trader - (seekingalpha.com/symbol/b) or (seekingalpha.com/symbol/c).
>
>
> I hate share buybacks - that is why I am down on Microsoft. By definition,
> buybacks destroy the capital structure and it gives cash to short-term
> holders. Long-term shareholders receive nothing.
>
> To be more specific, I would say (seekingalpha.com/symbol/b).
> In an era where almost every company is capital constrained, those
> with capital could make a lot of money. I think in the last two months
> you have seen many opportunities. Reminds me of when Berkshire bought
> its initial stake in GEICO - where GEICO was struggling but the additional
> capital made it worth more. You are seeing the same thing now with
> many insurers or banks.

Four Tech Companies with Tremendous Balance Sheets

By allocating cash in equities, which one(s) are you referring to:

A. Buyback
B. Forming an equity portfolio (?)
C. Acquisitions

India ETFs and ETNs Are Not the Best Emerging Market Investments

In more tangible terms, the chances of easing of investment caps in sectors and enabling foreign institutional investor's inflow is much higher in India than any possible changes in China. We`ll see a huge influx of liquidity and that should ease quite a few sectors such as realty and auto (which had been on a debt fueled binge). So India is probably a better bet than China in the short to medium term (1 -3 years). China on the other hand seems better poised to gain off a upswing in global economies with its excellent play with resources other acquisitions lately.

Agree with the author regarding not being enamoured with names, but definitely one has to be overweight china and india in the emerging markets. India more so in the short run.


On May 21 10:37 PM Rhunzzz wrote:

> China has the more effective government and a huge warchest of foreign
> reserves.
>
> India has the more open society and favourable demographics.
>
> I'd put my money on India over China in the long run...

Berkshire Hathaway Q1 Portfolio Changes: Does It Pay to Follow Buffett's Moves?

His positions tend to be long term in nature... so even with a quarter`s lag, you are looking at a good amount of play left.


On May 19 03:04 PM BigJake wrote:

> Since the holdings data is released quarterly how do you really follow
> Berkshires moves? Seems like the ultimate recipe for being late to
> the party. they don't disclose stock holdings more often than per
> quarter right?

This Chart Can Kill Any Bull

Beating a dead horse. The debt figures are obvious and have probably been completely factored in as seen in the poor offtake at the last Treasury auction. Calling bottom has become fashionable now but the move in equities is just rationalization of an oversold market when the vol has settled a bit.