Has publicly said that he would never buy MFST because of his friendship w/Gates. His reasoning was that If he bought it and it did well it would be said that he was given inside info, etc.
Interestingly Gates does own BRK though.
As far as the more recent Buffett individual stock purchases I think that Wells, US Bank, and Kraft have had decent returns. However if one factors in the warrants from the deals with GS, GE, BAC, etc. then WEB has pretty much blown 99+% of the investment community away. The only way to participate was to own BRK though. The days of being a 'parrot' and buying what Buffet buys seem to be a thing of the past.
Personally I would definitely pay close attention to what Ted Weschler invests in:
1) has an incredible buy & hold track record.......reminds me of a younger WEB
2) anything he accumulates in size could eventually become a BRK acquisition
Have to believe that Todd was managing well under $1 billion.
Not sure whose it is but CBI is a current investment that has not done so well for one or both of them.
Ted has a documented long term performance record that has been absolutely incredible. Not sure about Todd......would like to see how he has previously done.
Will be interesting to see what BRK's new subsidiary does as far as acquisitions. I think that they will follow the same 'blueprint' that they did with Home Services of America (Real Estate Brokerage) where they acquired a number of independently owned firms that had an outstanding reputation in the community as well as being financially stable. It also should be noted that when the real estate market was doing terrible HSA was an aggressive buyer. Garcadia has added a few dealerships but it is unclear to me as to what their growth plan is.
Good thing that AIG has been such a huge gainer for Bruce as some of his riskier plays/gambles are really getting pounded. In the event of redemptions it will be interesting to see what he sells.
Anything related to iron ore is getting slammed. Look at CLF . For a company with a long term perspective this could be a good time to be acquiring assets. MIL is in negotiations with CLF about the Scully mine and CLF has a number of other assets that are up for sale.
Globalfinancepartners posted on the Chuck's Angels board that the warrants are penny warrants......yes 0.01 per share. WEB is amazing!!
I am wondering if there is not a big deal in the works where BRK & 3G purchase another large company.
Do we have any numbers on any of the recent utility acquisitions? Considering the size of the utility business have to believe that every acquisition results in additional cost saving synergies. My take is that the 8-9% return is pretty much a lowball figure and that the actual return iwill be 10%+.
This issue does not appear to be 'going away.' IF the BK/Horton deal is completed will the minimum wage protestors who previously have targeted Walmart and McDonalds be camped outside the local BK? They'll have a "BK Double" protest as they can shout that not only does BK pay low wages but they don't pay any taxes either (note: at that point no doubt many of those protesting will probably think that BK does not pay any US taxes!).
The last few years In regards to political contacts/connections WEB has been absolutely brilliant so the announcement that BRK was helping to finance the deal really surprised me.
"It's true I have a lot of friends in politics but they wouldn't be so friendly if they knew my business was drugs......."
Thank you for the great notes!!
Sounds as if they have developed a pipeline of investments that going forward should provide above average returns. I like all of their recently announced deals.
A recurring theme by management is them saying that JEF is in a "unique position as the largest non-bank full service global investment firm based in the US." I'd be interested in hearing what, in their opinion, the specific competitive advantages of being in that position are.
Sentiment: Strong Buy
IF the deal is completed let's keep an eye on the sales results especially the same unit sales in the US.
If you owned a Burger King franchise in the US going forward would you view the publicity surrounding the tax inversion as being favorable to your business prospects?
Walgreens figured it out in a hurry.