There is an awful low of smart ppl over here, so
that some may have fun solving a
little problem while our BRK is tanking. I did solve
You have 12 gold coins.
One and only one of them
You do NOT know whether the
counterfeit one is heavier or lighter.
You only have
Find the counterfeit one, in no
more than THREE weightings.
How do you do it?
I think it smells like the early 70's again
except without the high inflation.(Does the word
impeachment sound familiar..??) Who knows what the market
will do an year, a month, even a damn hour from now.
As Buffett says, just keep your eye on a great
business and buy it at a reasonable price and you can't go
wrong. I don't think there's a better business on earth
than this baby! let's hope the market drives BRK down
to 5 cents a share then we can all go
I love this quote from Ben Graham;" What investors
need is first rasonably good intelligence; second,
sound principles of operation; and third, and most
important, firmness of character."
luck....and hang in there!
value investing really is
momentum investing is the opposite.
look extraordinarily cheap right now. I made 5
on my money in Junk bonds in the eighties. Looks
like a great
buying opportunity in the next six
I have a research assistant right now! An injured
NFL running back that is recovering here in
Charleston. Fifteen years of
martial arts. He makes 450
thousand a year while he is mending!
would teach him how to play with the big boys so he can
have his own team like Magic Johnson.
.............your valuation of NewBRK looks good
to me and I think others are doing the same thing
which is why IMHO present BRK seems to be builting a
base at the $60,000 level. I see more and more
analysts talking about "safe hiding places" and "flight to
quality".........perhaps there's panic buying of BRK going on......best of
GRN _BRK merger value per share. How's
Going by last year's annual report, GRN had approx $24
billion in assets, $16 billion of which were in
Let's say approx 33% of that $24 billion is in equities
(Although I believe it's a little lower than that as some
of that money is in S/T cash, "other" etc.That's
about $8 billion
Now, let's allow for a
correction, say a drop of 30% in the value of those equities
since that report was printed. $8b- 30% =
Add that 5.6B back to the bonds and that gives you an
asset amount of approx 21.6b (Assuming GRN still has
all those bonds)
Or a total correction of approx
In the report GRN stated an asset value of approx
$317 per share. I'll use $300 to be safe. Allowing for
that 10% correction as mentioned above that should
bring the value of GRN's assets to around $270 per
share.I believe Buffett paid about $276 per GRN share
(Correct me if I'm wrong)
Now, using the BRKb's as
an example, it takes 30 GRN shares to recieve 3.15
shares of BRKb.
30 x $270 = $8000.
3.15 = $2539 in BRKb value or around $76,170 per BRKa
Of course this is only based on last year's annual
report and you can bet the asset values have changed
since then, especially on the BRK side but I believe
this is quite a conservative estimation and does not
take into account the obvious synergies that will come
about once the BRK/GRNmarriage is
There are great synergies between BRK and Merrill
Lynch, if BRK could buy MER outright.
Buffett knows everything about stocks, except some
areas like technology or ethical drugs, MER would be
able to fire almost all their stock analysts and MER
could simply publish WEB's opinions.
lead to substantial cost savings.
investment bankers will go because MER will teach their
clients how to do M&As by themselves, like WB
Investment bankers are very expensive and firing them will
save even more money.
Investment advisors will
be replaced by tape recorded readings from Berkshire
The next people to go will be
traders, because BRK has 40 billion worth of investments,
yet gets by with one trader. So WEB could teach MER's
clients how to to that, too.
Then, MER will become
a lean, mean, fighting machine. Perhaps they will
move out from their WTC location to a warehouse in
Georgia or Nebraska, and save some lease money too.
Two more mentions on CNBC this evening at 5:30 by
Maria. Said again that WEB is rumored to be buying MER.
Also, on the newswires. See below.....
in Merrill Lynch (NYSE:MER - news) options was
featured as talk that legendary investor Warren Buffett
was buying the underlying stock, traders
``That helped,'' said one analyst of the speculation.
``But in general, people seem to think that the worst
is over for the financials.''
Buffett's investment vehicle Berkshire Hathaway Inc.
(NYSE:BRKa - news) had no comment on the rumors, in keeping
with company policy.
Guess what, I am from a town 10 miles west of
Gainesville--Muenster and know the area very well. Name one insurance
company based in Gainesville!! Please.
apparently you don't know that not everything is in "the
If Gainvesville, TX politicians scare you, then you
are as paranoid as H. Ross Perot!!