He's a great investor. Unhedged investments returned 37.74% last year and since inception unhedged investments have returned 9.37% annually through 2013 and have even outperformed on a peak to peak basis.
well i think maybe WEB may be looking at reducing his role. I dont really see any problems with Berkshire's performance. SP500 has gained 20% annually the last 5 years, not a surprise that berkshire's book value growth has fallen short of that, same is probably true of nearly every company.
Last year was .359 shares and now .3655. I had only modeled ~ .3617, I guess I missed something. Anyway at the current price of 21.40, conversion rights start at ~$58.50
could be, but even a breakeven for the warrants would be a 15% annual return for KMI, that's not too bad.
are there any industries that use non-gaap numbers that you think are more representative than gaap numbers? how bout REITs?
KMPs distribution can largely stand still and KMI would still be a good investment. units are growing by 9% this year. As long as KMP Returns on equity are above 18% or so, KMI at this price represents a very attractive investment. If they drop below that, a merger is very likely.
thanks Jad, I will. I try to read all of James and Ben's papers as well as the gmo asset forecasts and quarterlies, but I guess they didn't email me on this one.
In every annual letter in recent history I believe hes stated that he believes berkshire will outperform the S&P going forward by a small amount.
I think thats probably just about right on. 4th quarter was strong. The trading of equities shouldnt really matter as the portfolio is marked to market. The new buy back price should be just under $106
nevermind, failed to understand terms. Preferred stock will be redeemed when warrants are settled.
I just cant see the bull case with ghc. I tried to value the company and came up with a vlaue way below the price. Am i missing something?
Ok ill dip my toe in 1 more time. The makeup of us equities has changed significantly. Financial share has nearly doubled since 1990 and technology has nearly tripled. These two alone are now 35% of the index and are the sectors with the highest margins on sales
However, does that change anything about fair value? I have no idea. I dont even know what discount rate investors might use in the future or even the present without generous assumptions. 5.7 seems reasonable. Ultimately you are right that return will be dividend yield + sales per share growth. 4.5 is probably best case.
retail investors are the ones that brought it down, they ran for the hills over something thats not even news.
yeah cash is very important, especially in a market like this. What I started doing was using an online checking account that pays 3% on up to 15k but you have to use a debit card 12x month to get that rate, but sometimes I pay myself with paypal here :). Unfortunately, something like that only works with relatively small balances.