WMT has about a 3 percent net margin, high fixed costs and debt to incur those fixed costs. WMT has become a supermarket because electronics and other items are more easily bought online. That and the lesson from Tesco. I would be surprised if WMT position is increased. Hourly wage increases and higher healthcare cost are going to cause even more problems. You haven't seen nearly the end of health care costs rising. Obamacare has been very good to the healthcare industry. Have u seen your costs go down yet? I am paying more than double of what I paid in 2009.
Rents are notorious for blowing themselves up. This one appears to be better than most and it is self managed so management is not siphoning off all the profits. If I was to own one rest then this would be it. Vtr is not too bad either.
Thanks for correcting me. Debit investment in KHC and credit cash. I was thinking the shares would show up on list of equities but instead the KHC will be carried on the balance sheet for the cost of acquisition plus income less dividends received. If that is the case then the 10 or 15 billion created out of thin air by hnz kraft merger does not show up in the financials balance shhet for anything more than what was paid. Is that right? This deal makes brk's intrinsic value that much more than reported book?
Good article. Since BRK has about 25% or so of KHC it will show up next quarter in the financials under the equity method of accounting. A nice trick to show bigger income and book value than if less than 20% was owned. WEB pulls BV from thin air with the goodwill on this deal. His name should be Merlin.
I don't think KHC will drop down until next quarter but equities are a little over 150 bil right now if there were no net sales (including the BAC warrants). BNSF is the kicker but KHC takes care of that. Geico won't have flood claims this quarter so numbers should be good based on PGR. Marmon should be fine based on TRN and GMT. Tool works may take a bit of a hit on China. Lubrizol who knows? Electric maybe a tad light. AXP IBM and KO not too crazy. And 5 bil + flowing into cash and new investments. Cash around 55 to 60 + 150 bil equities + 4 to 5 bil in earnings still puts me around 147 right now for B shares and 155 in a year unless the bottom falls out of the stock market (which is always a possiblity).
Free cash flow stocks are doing great. Negative cash flow and big debt companies are getting creamed. I am afraid oil might be the next coal at this rate. Try making plastics with wind and sun. Carbon fiber companies like hxl are interesting. Note the carbon in carbon fiber.
By the end of 2015 BRK will have received about 15 dollars or so in divs from IBM so if the avg cost is 170 to 175 it has basically been a flat investment. I have done much worse than that. Just don't see IBM as a Tesco investment. If you need a big project like monitoring a train's speed or health care trends or insurance analytics you go to ibm. Don't you think WEB knows what his companies are spending their time and money on? Relax. IBM is not NFLX or LNKD.
Web originally bought brk textile because he noticed the stock would go up every time they shut down another mill. Ibm went up the first few times they laid people off. Ibm should be fine because lawyers will make sure safety monitoring is considered reasonable in all industries and ibm will be there to pick up their check. Call it analytics or whatever you want.
Doesn't feel good being the largest shareholder today. Hope what WEB sees in it is there. Seems like their revs are dropping pretty good across the board. Only thing I can think of is Watson will be the last employee standing and we won't have to pay him/her because its a computer. Zero headcount.
I could see 22 to 25 for duk or nee. Fair enough. Question is do they want to take on te's problem assets. 2 out of three need to be sold. Public utility is the only thing left with some old plants. I just dont see much more than 22. Glta.
Of course Greece doesn't really make anything so it is just a ban on sending back drugs that were sent to vendors in Greece. Politicians blame drug companies for sending back drugs. Unfortunately the same politicians created the mess. Pigs in shi....! Has anyone else done the accounting on what the average citizen in the USA owes (including unfunded liabilities) compared to average citizen in Greece? I think we have already crossed the Rubicon.
What a dreary life you live attempting to antagonize message board posters. I don't think I have ever seen an investment idea out of you. I sold some KO calls today for my trading shares. Enjoy the show.