Im not sure if thats true but i dont think its nearly as high as rocket thinks. There were a lot of unprofitable kmarts that never had their value stepped up in the merger. Thats why in the reports you'll see kmart stores sell for $10 million with a $10 million gain, because there is no basis
Yeah but its in insurance which has a lot of fluctuations particularly in 4th quarter. non-insurance still up more than 10% yoy. It was greater in the 3rd quarter but only because nv energys earns more than half of its annual earnings that quarter
Hard to miss how much better bnsf is performing, 4th quarter was good but this quarter will be better with cardloads up 8.7% qtd (not including intermodal which is struggling but with mich lower revenue per car)
Heres their last service overview:
Below is a look at the key operational performance categories for the week ending February 24:
Total trains held for the past week decreased to an average of 66.3, which is down more than 21 percent from the prior week and better by more than 80 percent from a year ago. Total trains on the system was down by nearly four percent from the prior week with an average of 1,596 trains on the system.
Locomotive velocity, measured in miles per day (MPD), was 267.2 compared to 269.9 MPD the prior week. Locomotive dwell increased by 3.6 percent from the prior week at 19.9 hours.
Car velocity was essentially unchanged at 209.1 MPD versus 210.2 MPD recorded the prior week, but nearly 17 percent better than the average recorded this same week in 2014.
Train velocity was down less than one percent from the prior week at 17.7 miles per hour. This week's reported average remains more than 21 percent faster than one year ago.
Total volume was 180,164 units moved in Week 7 (ending February 21).
Terminal dwell was unchanged at 25.2 hours, which is 17 percent better than the average from this week in 2014
well I dont think the letter will be particularly upbeat but 4th quarter earnings should be pretty strong, I'm very impressed with the cleanup of BNSF's network and carloads not including intermodal were up 7% in the 4th quarter. In my view, berkshire is still trading around 15-16x economic earnings (with some adjustments for excess cash, etc) so not outside a range of reasonability
and even if $10 billion is right by some miracle and sears immediately liquidates and doesnt lose any more money in the meantime, which of course are all impossibilities but under those circumstances, you still only get a stock price of $78, a far cry from the $150 you like to blabber about.
well even if $18 billion was correct and its a full $5 billion over gaap assets that would still exceed liabilities by less than $4 billion, leaving zero upside and thats with $2.5 billion of those assets being intangible and a company continuing to generate losses.
REIT would crush them even more. At a minimum you have a 7% cap rate so an extra $140 million a year in interest expense and you lock in unprofitable stores to long term leases. Its far better to sell properties if you can but there's little market for stores of that size and condition.
Yeah its just about over now for sears. Hard to see this quarter being any better than last year and they'll continue to bleed money. Store closures will cost a significant amount of money, create greater inefficiencies. Revolver availability is drying up fast as inventory declines and even if they were somehow able to limp along for a little while soon debt will come due that would have to be refinanced at a much higher interest rate. maybe the real estate could accomplish that but even that has its limits given sears' financial condition
I dont think theres necessarily any bad news lurking. He may be worn out from the job but most of it is that he was given a deal and took it. He got more than 4 years worth of compensation by retiring, I would probably take that deal too.
I think he's decreased his usage of the staggered strike lately. Still definitely fully hedged but less susceptible to market action. Of course that likely means lower gains in the case of a crash but his position can change quickly.
I like that he emphasized only his performance from his inception at the peak to the 2009 trough. He's the one always stating that his results should be viewed over the full cycle.
and by that time it was clear that it was a different company than the KO of the 90s. That was most of it, that and that it was already the largest part of the portfolio.
Annual report put hsgfx assets at 840 million and morningstar pegs it at 816 million, quite a collapse from the $6 billion it once was. I suppose thats the nature of funds like this, the chasing of recent performance. I have to wonder if its even worth keeping dividend value open with $9 million in assets
I dont know, I'd rather own $12 billion of axp than $8 billion of cash. Berkshire already has plenty of elephant ammo and the xom sale adds to that pile
I would exclude eddie and bruce, they've had skin in the game for too long and own too much of the company to make an exit feasible
yeah so a $500 million book value loss and of course berkshire stock responds by underperforming in the many billions. Oh well, investors are strange sometimes
To see a company with such growth potential be trading at less than 1.6x sales, yes they're currently not very profitable but they could easily add a couple dimes to menu price once their growth slows.
what I mean was fully hedged, certainly the staggered strike adds a new dynamic but under a fully hedged scenario I would expect the fund to earn close to the risk free rate, maybe slightly outperform it. As far as the market being meaningfully down, it does happen but I think it can overstate the effectiveness of the fund by looking at peak to trough. In the case of this peak, the manager had been negative on the market for 6 years prior. The timing on the IPO was exceptional.