9 out of 12 is not that bad. Yes warm weather does have some effect on retail and energy despite some people thinking its laughable. You have some areas of the country that are disproportionately affected by the industries that are struggling, particularly agricultural and energy, with a little bit of manufacturing as well and other areas that are still doing very well.
In the BNSF acquisition, they had to pay 30% of the acquisition cost in stock so the split made that stock a little more attractive by goosing demand a little bit.
but the Casinos should be back to profitability this year, that should help some.
An eastern railroad like that would be very interesting if you could get it done, but I dont think it would pass regulatory hurdles
buffetts stated that berkshire wont buy back stock during particularly turbulent markets, however the current market certainly doesnt yet meet that treshold.
at least from 2003, it turned 10k into 20k. HSGFX since 2003 has turned 15k into 13.85K
can u send em my way? Wife threw out my burger king coupons :( there was some good stuff in there
seems like a good bet and 1.4% is certainly very good for 6 weeks. Buffett made a lot of these type of investments in his early days and it was a favorite of Ben Graham's as well. All about calculating the return, the likelihood of the deal going through and how much the price would decline if the deal fell apart. In this case, the likelihood of the deal going through is very high but there would also be a fairly significant decline if it fell apart, but I think thats quite unlikely.
so you sell a few shares if it makes you more content to own berkshire. You'll be fine, and sure the price is a little lower but you're still way up from $75 3 years ago.
255 million pretax, or well over $4 billion in common stock. Not a bad trade
Well over the berkshire conversion threshold of 53.72. If it can largely stay here over the next 6 weeks, conversion could be forced or it may be forced anyway depending on how the merger is structured but that would take longer anyway.
Sold mine at 41.55, the day OPEC decided not to cut, shouldnt have held it that long but it worked out. Its a very interesting investing community, especially on the message boards. So many people insisted that oil prices would have no effect on KMI, even though 16% of their cash flow was from oil and expensive to recover co2 enhanced oil at that. Natural gas of course was experiencing similar pressures. In addition, every one of their contracts, toll road or not, is ultimately subject to the solvency of the other party. I didnt have too much problem with their accounting, pretty standard for the MLP industry. I think they should have expensed a little more of their oil recovery, but thats just my preference. The other thing I think you can take issue with is the policy of capitalizing any project that enhances capacity, again this isnt unusual for the mlp industry but it can complicate the calculation of what true maintenance capex is.
the rate has certainly slowed markedly but the 5 year as of last year was still at 14%, although thats been helped by a strong equity market. I think its a good example though of a company that will likely continue to have somewhat strong book value returns and will buyback stock aggressively if the price gets low enough. You have to be a little careful with book value per share as there have been a couple recent insurance acquisitions that were bought below book value that increased book value per share but generally Markel has performed quite well
not that I've seen but I imagine definite possibility, nobody wants to lend to a lot of these guys and selling assets might be the only way to prolong death.
fair enough, but the reason why Berkshire isn't trading at 1.7 isnt because of no div but its because its businesses have been struggling. BNSF no longer looks like a huge growth engine with carloads continuing to fall, profitability growth has slowed down, Geico is just getting over a rough patch, and investment performance has been poor. 1.7x book only happens if you can approach 12% ROE, berkshire is close but has fallen a bit short