Yes, at least for today it is.
Something to consider--"Besides, Berkshire has access to two low-cost, non-perilous sources of leverage that allow us to safely own far more assets than
our equity capital alone would permit: deferred taxes and “float,” the funds of others that our insurance business holds because
it receives premiums before needing to pay out losses. Both of these funding sources have grown rapidly and now total about
Better yet, this funding to date has often been cost-free. Deferred tax liabilities bear no interest. And as long as we can break
even in our insurance underwriting the cost of the float developed from that operation is zero. Neither item, of course, is equity;
these are real liabilities. But they are liabilities without covenants or due dates attached to them. In effect, they give us the
benefit of debt – an ability to have more assets working for us – but saddle us with none of its drawbacks."
I'll continue to hold my BRK shares over SPY because I believe one can better quantify the downside risk.
She took a 1.25% position in RAI today at 58.2/share. She likes the LO deal.
She sold some COP shares to fund the purchase. She's currently only 4% cash. She's now has over 22% of her assets invested in tobacco-PM, LO, RAI, MO and IMPERIAL TOB.
In Buffett's lifetime? Doubtful-he'd have to live to 100 or initiate a much more aggressive share repurchase program as HC has called for.
And will $1 million still have any value 15 years from now? How much will the cost of health insurance and long term care cost in 10 to 15 years?
$1 million per share does have a nice ring to it.
Look to AIG for your call option income needs.
AIG trades at 50.5 and has a book value over 70. Dividend is only 1% but they're buying back large amounts of stock at a deep discount to book so life is good.
Well done on your AAPL investment, I'm still short puts priced under 300 and long a very small amount of the stock purely for a long term investment.
"May 1 (Reuters) - Berkshire Hathaway Inc's energy unit said it would buy Canadian electrical transmission company AltaLink LP for about $2.9 billion in cash from SNC-Lavalin Group Inc.
Berkshire Hathaway Energy said its MidAmerican Transmission unit and SNC-Lavalin would jointly pursue transmission projects in North America."
AltaLink is Alberta's largest transmission provider.
(Reporting by Sweta Singh in Bangalore; Editing by Savio D'Souza
Sold 25% of my shares at 40.75 and initiated a position in BX @ 29.66 in the same account.
Why the KO sell? Earning's growth doesn't justify their current high P/E and their share repurchase program.
I would have sold more call options against it but they're just priced too low to make it worth selling them.
"ExxonMobil said Wednesday it would hike its dividend to 69 cents a share from 63 cents a share in the first quarter.
The world's biggest publicly-traded energy company said it has lifted its annual dividend for 32-straight years.
The shares fell 18 cents, or 0.18%, to $101.27 in afternoon trading."
This is the third BRK holding that's raised its dividend today--IBM, WFC and now XOM.
I own XOM in a few of my IRAs so thank you XOM.
XOM' dividend yield is currently about the same as 10 year treasuries.
and she also bought more WELLS FARGO convertible 7.5% PFD.
LO is still her 3rd largest holding behind only PM and BRK.
She paid 75.57/share for WMT, 1221 for WFC PFD and sold LO for 61.07 per share.
Bought more today in IRA #1 for an option adjusted cost basis of about 31/share with more to follow in the same account.
I plan to make BX a core holding in all my IRAs.
in IRA #1, thus increasing my position by 19% to 4.5% of the assets in this account. The account is currently 43% cash which is used to sell cash secured put options.
Why more IBM? Buy "LO" and sell it high is my motto.
I checked her RAI history and she sold in in April of 2012 in the low 40s.
That's why she was only up 17% last year and about 8% this year because of trades like that.
second Quarter Earnings Announcement Expected: BX has confirmed that earnings will be announced 07/17/2014. With 16 analysts covering BX, the consensus EPS estimate is $0.68, and the high and low estimates are $0.82 and $0.54, respectively.
Expected Timing: Before market open
I couldn't find per share book value in their quarterly report but I divided their total equity by diluted shares outstanding and came up with 70.5/share.
I'll just use $70/share for my book value.
Current price near 50 puts it at about a 30% discount to book value.
Buying back shares at a 30% discount to book value is accretive to earnings. Why buy a bond that pays 3% when you can buyback your own shares and earn 30%? They should be writing less insurance and buyback more shares.
In three of my accounts and used some of the cash to buy BRKB. My plan is to take some profits through the summer and raise cash.
Grandma sold 28% of her shares in LO but it still makes up 6.5% of her holdings and is still ranked #3 in her top 10 holdings behind only BRK and PM.