I think if they think the stock is cheap, they raise the dividend 1 penny and stick with share buybacks, if they dont think its underpriced, I imagine you will see more of a dividend raise.
I think there's still value in this stock. It's not cheap like it was last year when I calculated a pe ratio(including discounted look through earnings) of about 12. That ratio is now only moderately below 15 but I think offers decent value in a fairly expensive market.
Continued drop in sales. Still a lot of restructuring charges clouding the picture but operating income even excluding the charges is down, but at least EBITDA is up :)
If it deteriorates much, Berkshire might have to start taking its preferred dividend in shares. Net income excluding charges was $181 million. Berkshire's preferred dividend each quarter is $180 million
Id say xom or you could probably grab a 5 year cd for 3%, you would be locking in low returns but thats probably the best guaranteed return in todays market
I read it. I disagree. It says that hes still leveraged 2 to 1 which means that akthough they were talking about stocks they are only looking at assets to liabilities, which about half of the liabilities are float and deferred taxes. They were talking about year end 2012 in which he had a $86 billion equity portfolio compared to $186 billion in equity, less but still substantial if you ignore the goodwill. Bnsf and midamerican is really the only place where substantial debt is being used.
Also the advice is to use 60% margin, i couldnt do that even if i wanted to
I have a lot of confidence in 3g but do still find myself a little concerned here. Im particularly talking about the results even excluding the costs of restructuring which is net income of $181 million for the quarter and then berkshire gets $180 million for its preferred stock. Granted the cash flow situation is somewhat better but not significantly. Perhaps im being too pessimistic and restructuring will show significant g&a improvements, but if not berkshire may soon be getting their payment in shares.
Penfed has 3.04% apy 5 year cds. Its for military members and other military and volunteer organizations, i believe you can also join with a $15 donation. Thats the best rate ive seen for the 5 year. If you were to cancel, the last year worth of dividends would be forfeited. They also have 3 year for 2.02% (cancellation forfeits 180 days)
Seriously? Most companies trade well above their book value. Average for sp500 is about 2.6x times book value. 1.35x is fairly reasonable and not out of line with berkshires history.
Ive seen a lot of maagers continue to operate at very low levels of returns with no improvement in sight but very rarely have i seen management surrender their jobs in the name of shareholder value. If they did that would probably only be if they had a substantial amount of insider ownership
Yeah, thats a lot deeper cut then i expected, i was guessing 10 cents. R u ready to cash out below $4 or r u going to keep your short open?
just be the thankful this market is giving any decent value. brk may not be a home run but I still think its a decent pick in an expensive market. Although certainly its more expensive than last year.
I think he overestimates the prospect of profit margin revision because of his reliance of corporate profits after tax. Corporate profits after tax seem very high because interest expense is near its lows. Equity holders are benefiting at the expense of debt holders. Operating margins though are much less elevated although it looks like this quarter slightly beat the all time operating margin that was set in q2 2006. I think we will see some reversion but I think that it will be less than he has anticipated although in this weeks comment he pulled back some on his estimates for profit margin reversion.
I think using a discount rate of 7.5% is liable to lose you money.
the positioning of the portfolio can make a large difference though, overexposure to health care, consumer staples can make the fund perform positively in down markets.