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Berkshire Hathaway Inc. Message Board

  • saltmakr saltmakr Sep 25, 1998 4:03 PM Flag

    Block trades

    Two block trades of 500,000 and one for 1,100,000 of Deere and Co.(DE) in the last week passed by Lehman Brothers.

    Could this be WEB and crew?

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    • I agree that WEB would stay away from Deere. He
      got burned in agricultutal equipment years ago with
      the Dempsey Mfg. Co, in Nebraska...vowed never to do
      that again--too capital intesnvie.

      Knowing
      WEB's propensity for buying businesses whose produts he
      likes or was ocnnected with..remember he delivered Wall
      Street Journal as a kid....I think he would love to own
      Dow Jones

    • .......and that WEB is looking at
      Deere........they're a great American company with a great future,
      with an attractive price nowdays.......besides
      agricultural sales, their construction equip division looks
      good to me, and don't forget lawn and garden. And talk
      about brand loyalty....

      This is not a WEB stock.
      Too capital intensive. They must reinvest much of
      their earnings developing new equipment and retooling
      factories. this is a cyclical stock that WEB wouldn't want
      to own IMHO

    • Buffett is set on lowering Berkshires exposure to
      the stock market not add on to it. You will only see
      him buying companies that Berkshire can own
      outright.

      Read James Grant's article "The Buffett Dilemma" pg
      92, Oct issue of Money magazine. He explains
      Buffett's thinking on this idea. Selling stocks creates a
      real tax problem for Berkshire that is one reason for
      buying GRN in the way he is doing it.

      Buffett has
      said that he is on the lookout for good companies to
      buy (1 to 2 billion dollar range) not
      stocks.

      I like this idea, and that's why I am buying
      BRKb's.

      oafish98

    • Deere had $332 million remaining in $1000 million
      share repurchase authorization as of 31 Jul 98. They
      spent about $321 million on their own stock in the
      quarter ended 31 Jul 98, buying shares at around $50
      each. Now that they have warned the stock down to $31,
      perhaps they are completing the repurchase before the end
      of their FY in Oct. Do they typically buy blocks
      through Lehman?

      Deere isn't the typical Buffett
      long term holding, IMO, due to the dependence on
      (weather- and commodity price-affected) farm sales for 2/3
      of their equipment-related income. Certainly could
      be a good trade though. Lots of capital equipment
      makers are selling at cyclical lows, with good cash
      flows.

      • 1 Reply to douffas
      • Do you suppose if I owned at lot of Deere stock
        that they would
        give me a good deal on a
        tractor(you know, like free)?

        Farm income is way down
        this year, so I think the farmers will be waiting
        until the Asians can afford the chickens that eat
        the
        farmer's grain.

        Maybe this is a good time to stock
        grain for when the Year 2000
        problem shuts down the
        world?

    • ............It wouldn't surprise me if WEB is
      behind these huge transactions........there were
      persistant rumors this summer that Buffet was looking at the
      stock....it would fit a lot of his criteria as far as being a
      well established company dominant in their
      sector.......low P/E right now of 7.2........way down from their
      high...........problem is that the agricultural sector is hurting right
      now..........guess Buffet might figure they've been down so long
      it's time for a turn around, huh.

 
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217,000.00-1,280.00(-0.59%)May 22 4:00 PMEDT