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Berkshire Hathaway Inc. Message Board

  • weissma weissma Jul 13, 1998 3:19 PM Flag

    Double the BRKA?

    W. E. Buffett wrote:

    Warren Buffett,
    Chairman of Berkshire, commented: "The merger (General Re)
    will bring more than $80,000 of investments
    Berkshire for each Class A or Class A-equivalent share
    issued. That's beneficial, being nearly double the
    level, or, put another way, the merger brings more than
    $24 billion of additional investments to Berkshire.

    Will it double the BRKA? When?




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    • I would only call your attention to my post on this board about 3 weeks ago calling for a buy on PSIX...

      Look it up.

      Greg aka Napart

    • <<you have my e-mail address, come on and
      help me with some HTML...>>

      Talk about a
      win-win! Here's how to create your URL:

      Scan the
      statements in, and paste them into any Word document. Save
      as...(select HTML). Save the file onto your web server, or FTP
      it to your ISP. Post the address on this board, and
      we're ready to see it.

      For any of you who
      haven't been following, greg says his investments
      outperform WEB's. I say he's a liar and/or phony. If his
      investments outperform WEB's, that would make Berkshire the
      laggard. What kind of a dope keeps junk managed by a man
      he hates when he could be making big money by
      himself out in the wide, wide world?

      If it turns
      out that I'm wrong, I'm going to apologize and see if
      he will let me subscribe to his newsletter.

    • <web would rather have cash (grn's cash) than
      brk stock. web is effectively selling without paying
      capital gains tax. (this guy is smart.) if there were 3
      or 4 grn's out there he might be happy to unload all
      of brk for cash>>

      I do not
      understand how buying GRN for stock equates to Buffett
      selling out. Berkshire gets GRN's portfolio along with
      its topnotch reinsurance people. Buffett has his
      stake in Berkshire cut from let's say 40% to 33%, but
      the company is worth more by a similar proportion.
      Buffett's stake is no more liquid than ever, and consists
      of no fewer BRK shares. Buffett says that the
      combination provides strong benefits to the reinsurance
      business, thereby increasing the intrinsic value of the
      firm. IMO, previous posts that said Buffett used
      overpriced stock to buy an undervalued business are pretty
      much on target. Could you elaborate on your viewpoint
      upon awakening?

    • didn't the Japanese buy a lot of foreign (US) securities? Good for the US market but not so good for theirs.


    • you have my e-mail address, come on and help me with some HTML...


    • brk is going down because web would rather have
      cash (grn's cash) than brk stock. if he wants to trade
      brk for cash it doesn't make sense (unless he's
      wrong) for us to trade cash for (buy) brk. web is
      effectively selling without paying capital gains tax. (this
      guy is smart.) if there were 3 or 4 grn's out there
      he might be happy to unload all of brk for cash,
      like he did when he sold out prior to '73-74 bear
      market. i'm long, and buying brk, but i remember where i
      was in 1987 when larry walked in the door and said
      "the dow fell 500". that would be @ 2500 from today's

    • <<The A are just as liquid and trade at 30
      times the B shares. They move in almost perfect
      lock-step. B have 1/30 the economic value and 1/200 the
      voting power. A also have the ability to direct gifts to
      charities if they are held in the owner's name and not
      street name. >>

      Yep, and right now you are
      only losing $155 per A share for the privileges.
      Earlier, when the trend was positive, this number was
      approaching $400. That was when the BRKA holders were
      snootier. :)

      BRKB at 2522
      BRKA at 75505
      times BRKB=75660

      You may want to look into
      buying A's and converting to B's at your leisure,
      although its not that attractive at the moment.

    • You are right, but you forget that everything is
      The 'stuff' he bought was cheap relative to the rest
      of the market. Instead of the price coming down,
      what if everything else went up by the same multiple?

      Pay less for a company, or print tons of free money
      and use it instead. With free-Brk-money GRN was
      cheap. So there should be plenty of potential with
      GRN... besides, he used funny-money to get $22 billion
      in real money. WEB is getting ready for a huge
      end-of-party sale. As long as he can keep his float, I don't
      think WEB cares whether he can grow GRN ...

    • I understand your thesis about the boomers piling
      in, but liquidity-driven markets get divorced from
      value and always end badly. For example, you could read
      in the Wall Street Journal in the 1980's that the
      Japanese people revered their stocks like ancestors, never
      sold, and would always plow their 20% national savings
      rate into stocks.

      Curious no one has attempted
      to reply against my question in the previous posting

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