yeah its pretty fascinating that we still have a negative real yield on the 5 year TIPS. In 2007, the real yield was over 2.5%. There really is nowhere to hide.
If he didn't give all that money away. Pretty impressive, easily would have put him at #1 although bill gates has donated a chunk of money also. Oh well. Guess he'll have to settle for #4
Unfeel comfortable in cash though if theres a world war? In WWI inflation got to 20% in WWII, inflation got to 12%. If you insist its happening, TIPS are the way to go.
Thats certainly a possibility. Personally i think he'd rather have the additional shares as the 5.1% after tax perpetual preferred seems rather unattractive.
We have to pay $5 billion to exercise the warrants but we have the option to exchange the preferred stock to satisfy that cost ( as per bac 10k). I think we'll choose to give up the $255 million income stream instead of paying $5 billion
Yeah its a little tough to value the warrants by themselves because we will be exchanging the preferred stock to get them. Preferred stock earns about $250 million after taxes so I think the true cost of that exchange is a little less than $5 billion
Bank of America Warrants/preferred now worth over $12 billion. Dow will likely be forced to convert if it rises another 7% but that would give us $4 billion in stock.
He established that reputation through great timing and avoiding large caps in 2000. 2 years after starting the fund, it was up 50% while the market was down 50%. Unfortunately hes just about given that advatantage back now.
Yeah i think the options are definitely a forecast or at least a bet. I wish he would just short the index instead, particularly when interest rates are low. Last year, he lost 6.62% even as his stocks outperformed the index by 6%
Thats the way its defined in the agreement. DCF is not FCF. They pay out their cashflow from their existing operations and then issue equity to fund expansions or new operations.
agreed. Berkshire as a whole(which of course is not just Mr. Buffett) bought $740 million worth of stock in the fourth quarter and sold $931 million of stock. For the year berkshire bought a little less than a net $5 billion in stock, of course stocks were a lot cheaper towards the beginning of the year. Its clear he wants to be allocating investments to operating businesses as I would do given how the tax code affects berkshire.
Maybe he hasn't said it but hes implied it pretty heavily. Clap if you believe.
I'm pleased and I think within a decade, Geico will be able to pass state farm in auto insurance. This company is performing well. Valuation is quite reasonable, particularly compared to the market. Its currently my largest position, but I would consider adding more on even a moderate decline here. Midamerican's projects will give a nice boost when they come fully online.