35 Burst results for "Berkshire"
Health venture led by Amazon, Berkshire, JPMorgan is ending
"The joint healthcare venture between three of america's most powerful companies amazon j. p. morgan chase and berkshire hathaway is disbanding after three years high profile. Ceo's jeff bezos cheney diamond and warren buffett had teamed up to tackle one of corporate. America's thorniest problems the high and rising cost of employee healthcare and the initial announcement of this partnership was dramatic shares of other healthcare companies tumbled on fears about how these leaders might find a way to make it all less expensive and more efficient in june twenty eighteen. Becky quick spoke to warren buffett and jamie diamond about their shared. Goals are water of ideas out there. A lot of things will be done better. We know the fraud. The administrative 'cause we overuse underuse of of of various drugs and specialized procedures. We know the end of life is often costs. Far more than should and is far more painful should be So there's so many and big data there's so many things to do but the goal is better satisfaction for employees and eventually we can learn a lot of things and maybe help inform america. How we can improve some of these things. Have you heard from aaron place. Yeah i i Addressed a group of about one hundred and thirty or so of the various. Cfo's from all our subs Just a couple of days ago and and they're very interested in the subject and the interesting thing is as we went around interviewing Large number of perspective. ceo's we didn't run into one. That didn't think that improvement was both possible At important nobody disagreed with the the mission. The importance of it or or Feasible only but it's also a very very tough nut to crack havens initial. Ceo was dr a tool galante new yorker staff writer and surgeon. You've heard him on this podcast several times. He's an expert. In how complicated and tangled the american healthcare system is. It's a maze of doctors. Shirts drugmakers guerande. Step down as ceo to become chairman this past spring as the covid nineteen pandemic grabbed the day to day. Attention of the medical community. As haven shudders most of the firms fifty seven employees are expected to be reassigned to amazon berkshire hathaway and j. p. morgan chase. Here's joe kernan. W toward toward healthcare is hard. It's hard to solve health care. I don't care who you are. I don't care if you're talking about. Yeah i don't care if you're warren buffett jeff. I just hope it's not that you know what we lost a couple of million dollars. We'd better shut this down on those three guys. Diamond was that all three of the companies. Were doing some of their own things That they had taken out of the story tapeworm. That's really tough to when you're talking about more than seventeen percent of gdp versus five percent back in one thousand nine hundred sixty san right james warren buffett and jeff bezos saying. Forget it. we can't fix this problem then. Yeah i mean we talked about how many pay three years this is going to be it. This is going to be. Our problems are over right hi talked. I talked about this on the phone yesterday. Try to understand what happened. And i think becky's right i don't think it was that they shut it down entirely because they were losing money or something. I think in many ways it was designed. I don't want to say it was designed to fail but it was it was it was designed number challenging way which was the big lesson of this was actually insurance is local. These health systems are local. And trying to do it on a national basis with with employees in all different types of locality. all kinds of different systems may very. Well be too hard. I think a lot of the lessons were learned. Have been implemented are being implemented at j.p morgan in areas like new york in columbus ohio. For example. i think you're seeing what amazon's doing remarkably actually in seattle. They're their program therefrom -ployees which also include warehouse workers not just not just executive employees. So i think there are some things that will come out of this but obviously not Not the big headlines that that had been expected three years ago when this began. Let's say amazon has rolled out a lot of different initiatives over the last year or two. I was looking at a store yesterday. That kind of laid out some of those things just the idea of amazon health. The they do it for their employees as you mentioned andrew and i think they have thoughts of of selling that other companies too so i i don't think we're going to see the end of any of these companies or any of these actors trying to get healthcare costs. I guess it's just a question of how you do that. And you're right. It is local. You you've got to do this on a local basis but healthcare costs are are not going down. You know they rise faster than inflation. It's a. it's a huge huge issue More than seventeen percent of gdp and we do have to continue to try and find a way to tackle this
Haven will shut down, ending joint healthcare bid by Amazon, Berkshire, JP Morgan
"Started by Amazon. JP Morgan Chase in Berkshire Hathaway is dead. Executives Jeff Bezos, Jamie Diamond and Warren Buffett launched it three years ago, hoping to transform health care. And reduce costs for workers that their three companies, The Wall Street Journal, says havens goals were too ambitious. It also lost leadership because of the pandemic. You may be paying more for
Haven, the Amazon-Berkshire-JPMorgan venture to disrupt health care, is disbanding after 3 years
"Ventures started by Amazon. JP Morgan Chase in Berkshire Hathaway is dead. Executives Jeff Bezos, Jamie Diamond and Warren Buffett launched it three years ago, hoping to transform health care and reduce costs for workers that their three companies The Wall Street Journal says Havens goals were too ambitious. It also lost leadership because of the pandemic. You may be paying more
Haven will shut down, ending joint healthcare bid by Amazon, Berkshire, JP Morgan
"Amazon. Berkshire hathaway and j. p. morgan say they're ending their joint. Healthcare venture haven just a few years after its founding. He even was launched with the goal of reducing healthcare costs for employees of those companies. But it showed few signs of impact. A spokeswoman said the companies will continue to collaborate informally in the future haven will cease operations next month.
Health venture led by Amazon, Berkshire, JPMorgan is ending
"Hathaway and J. P. Morgan to attack soaring cost is going away. But around since 2018 but is shutting down at the end of February. A spokeswoman didn't say why. Independent company was set up to improve the care delivered to workers at those businesses while being better fiduciaries. They chose Harvard professor and surgeon Dr Adalja one day to head the venture, but he left back in May. Haven't remaining the havens. Remaining employees will be absorbed by the three companies which created it was news time for 26 now. Bloomberg money watch all intent in winds. And
Haven, the Amazon-Berkshire-JPMorgan venture to disrupt health care, is disbanding after 3 years
"New England business. The healthcare venture created by three corporate giants to attack storing care costs will will be be shuttering shuttering only only a a couple couple years years after after launching launching A A statement statement from from Haven Haven says says it it will will end end operations operations at at the the end end of of February. February. The The venture venture was was formed formed a a 2018 2018 by by Amazon, Amazon, JP JP Morgan Morgan Chase Chase in Berkshire Hathaway. The independent company was created to focus on improving care delivered to employees of those businesses while doing a better job managing The
Healthcare venture led by Amazon, Berkshire, JPMorgan is ending
"Healthcare ventures started by Amazon. Berkshire Hathaway in J. P. Morgan is dissolving Haven was formed in 2018 to attack soaring cost but has been largely silent for some time. No reason was given for ending the venture.
Buffett on Small Business: Its an economic war
"Berkshire hathaway chairman and ceo warren buffett. He joins us on the squawk newsline. Also david salomon. The chairman ceo of goldman sachs goldman by the way is announcing a two hundred and fifty million dollar donation to establish the next generation of the ten thousand small businesses program. Gentlemen thank you both for being here and warm. We'll start with you. You have not spoken publicly since the last annual meeting of back in may for berkshire hathaway. You weren't planning on speaking publicly again until the next one this coming may. Why are you taking time today to talk about this issue right now. Well i think it's it's it's so important that small businesses which of become collateral damage in a in a war. That are our country needed. The defied but We'd in effect bomb charlie At an induced shutdown of parts of the economy hit many types of small businesses. Very very hard and We made some provision for that and march in terms of the cares act but then nobody really knew how long the Now this self inflicted Recession would would last with this particular effect on small businesses so We need another. We need another injection to To complete the complete the job and congress's debating right now and i just hope very much that they extend the p p. A plan on a on a large scale to Let the people who may see the of the light at the end of the tunnel. Get to the end of the tunnel but So it's it's very timely. It's very important and And i do think congress will do something. And i hope they step a very soon because every day is important make people wonder why would bid business. Leaders are are stepping out and speaking on behalf of some of the small businesses. What what is it that concerns you about this. Why is this an issue that you're you're really putting yourself out there with well. Big businesses generally a gun very. Well not the if. They were traveling. Entertainment related days. They still have difficulties but The fed did a terrific job. The they saved us from something that would have been a lot worse than two thousand eight nine When they acted in march so large companies who in the middle of march early march were were going to have no access to capital The market just open wide and the corporate issuance was huge but the small businesses Received some help. But it's not getting to the end of not getting to the end of the tunnel and You know you'd say it's situation. Just take food food manufacturers. The big names Done terrifically people haven't quit eating you and and And the large grocery chains have done very well margins wine salesmen. Good but if you had to get your food And i small restaurant or medium size restaurant and and social distancing was required. Everything you just. You just killed the economics for somebody that may have been working for decades with our family to build a business and reinvested their earnings and improving their their establishment and then Through no fault of their own and edict comes along that That kills all their dreams. And it's it's it would be so foolish to The not follow through on this and enable those people to get back to where they could Do the kind of business they were doing before you know it. it it. It's an economic war and and And certain you know when we wanted to world war two a lot of industries were shut down and and Everything went over to the defense production. Well we've shut down a lot of people in this in this particular Induced recession and and others are prospering. At and i think that the country owes it to the m really millions of small business people. And i've met a lot of these people through the goldman sachs program just renewed ppp. And and Get us to the got us. The end of the tunnel.
Free coronavirus testing expanding in Massachusetts as cases surge
"Also today, said the state's numbers are going up in his words like a rocket after Thanksgiving. In response, the state is now expanding its freak over testing. Those plan includes three new free express testing locations and framing him Do Bedford and Lynn. This effort will be in addition. $150 million investment we've already made in testing to continue to provide access to testing across the Commonwealth. These new sights will be operated by Project Beacon. The vendor that's currently running the high volume expressed testing site and revere. Their model is proven to be quick and efficient. Is anyone from booking online appointment and visited drive through testing site and the governor said the state is also expanding new free testing sites in Franklin County, Hampshire County and Berkshire and Barnstable counties as well.
Tesla just passed Berkshire Hathaway as the sixth-largest company in the U.S.
"Tesla today with its close above five hundred and fifty billion dollars. Market cap also moved up a slot in terms of the rankings for most valuable publicly traded companies and after talking about berkshire hathaway and episode. Last week we get to mention them here again. Because that is the company that tesla has passed on the rankings. Moving from number ten to number nine and also in terms of us based companies up from number seven to number six quick note here on the s. and p. five hundred inclusion process when the announcement was made that tesla will be included of course the s&p was seeking feedback on how to structure that inclusion. And just as an f. y. e. s. p. committee intends to announce the results of that consultation on monday november thirtieth generally their announcements are about an hour and fifteen minutes after market close. So we'll keep an eye out for that for the final word on how this is going to be structured
Amazon opens online pharmacy that delivers prescriptions
"Amazon launching an online pharmacy customers will be able to buy prescription medications through a new store on its platform code amazon pharmacy. So now when you're at the doctor you can ask them to send prescriptions to amazon pharmacy. Just like any other retail pharmacy. Like you did before. It accepts quote unquote. Most insurance plans poll amazon launching. An online pharmacy was the points. What could possibly go wrong. There are two aspects of the recode article that used santos marcus that i thought were interesting. One is the fact that a lot of things that we didn't anticipate buying through amazon. Now we do so routinely. So i think that bodes well for prescription drugs being part of that but the other part that concerns me quite a bit is the just the number of knockoffs and how unregulated the amazon marketplace. Seems to be at times mock I would never bet against amazon in anything possible. Hitch in this. Is that the prescription. Drug markets skews toward older consumers. They they're the ones who who need this stuff more and that on average somewhat less comfortable with ecommerce younger people had the a lot of The pandemic learn to deal the e. Oh so that that's favor. But i'd be astonished if this flops blake yet had mark's got it exactly right. It's sort of the logical next step for amazon. Now that the pandemic has gotten older generations. Used to shopping for essentials online so sort of the next step beyond grocery in every other day household essentials and this is the age group that they're going to need if they want this to be successful so i think the time is right. Context on this story is comes about two years after amazon com susan company pill pack for seven hundred million dollars is also made other moves into the health space. Health insurance space amazon. Berkshire hathaway and j. p. morgan chase in twenty. Eighteen launched a joint health care venture code haven. We've yet to see where that's going to go. I'm was prime. Members will of course be able to save money paying for medications generic and off brands without using health insurance which is interesting. that's just chace took hit following the news. Drugstore companies like cvs and drug distributors like cardinal health. This will no doubt as well as vice out of walmart target costco's pharmacy businesses to joe this album praying and sharon tell up the wall street journal noting quote. Most americans still prescriptions at the traditional drugstore. Us prescription drug sales at pharmacies was over three hundred billion dollars in two thousand eighteen coins health research firm. A via nearly four billion prescriptions filled each year in the us in march. Mail order prescriptions. Mail order prescriptions. Were up twenty one percent from the previous giving them a six percent slice of the prescription drug market. Hi shannon lost two years. According to suntrust robinson humphrey. Wasn't there a time not long ago when there were a lot of rumors about amazon getting into not the prescription drug business but healthcare coverage insurance coverage. Am i imagining that. Or i might be the time with the two companies haven joint venture with halfway and j. p. morgan chase. So they got together to basically trying to put together some kind of umbrella coverage for all three companies. And somehow i pulled on everybody's sources provide coverage for all of their employees. I think that might be the thing. Maybe i i guess. I was on the impression that it was more comprehensive than just those companies and that they were basically going to try to roll out like you know obamacare. You know amazon care but yeah whether they were going to roll the roll that out to other companies as some kind of a model yet to be seen but i think with their own folks
Buffett's firm trims Apple stake, invests in drugmakers
"Seeing a thematic rotation out of bank stocks into farmer during the quarter. Let's start with the new positions in the pharma sector berkshire-hathaway taking new stakes. An abbvie merck and bristol. Myers squibb each of those positions worth about two billion dollars as of the end of september. Warren buffett's for also disclosing a smaller position in pfizer. Worth about one hundred and thirty six million at quarter end and maintaining nine digit home in teva and biogen on the financial side. We're seeing a continued reduction in bank names by berkshire hathaway the firm almost selling out of j. p. morgan entirely paring back at stake by ninety six percent. Hold just under one hundred million dollars worth of stock also sizeable reductions in mt and p and see as well berkshire-hathaway providing interim filings on wells fargo and b. of in august and showing a slight decrease in position since then in each of those names. Interestingly there was no change in the firm's nearly five billion dollar stake in us bancorp and speaking of multibillion dollar steaks. I know we love to talk about apple here. The way into three sold about four billion dollars worth of apple stake at today's price. Although that was a paring back of less than four
Profit jumps 82% at Buffett's firm but virus hurts business
"Warren Buffett has gone from shying away from buying stocks back to being one of the world's biggest re purchasers. Buffett's Berkshire Hathaway spent the third quarter buying back about $9 billion worth of its own stock more than it had repurchased in any full year in its history. Catherine She Glinski covers Buffet and Berkshire Hathaway for Bloomberg News. In recent months, we started to see him find other ways to put the capital to work. He's made a big bed and Japanese trading houses. He's Berkshire has taken stakes in snowflake. Um, and now we're seeing him say, Hey, I'm willing to put a lot of money into work in stock repurchases. I think that really shows that you know, he is seeing some value in Berkshire zones prospects. Berkshires. Operating profit dropped 32% heard by the insurance units first underwriting loss since the end of
Profit jumps 82% at Buffett's firm but virus hurts business
"Has gone from shying away from buying stocks back to being one of the world's biggest re purchasers. Buffett's Berkshire Hathaway spent the third quarter buying back about $9 billion worth of its own stock more than it had repurchased in any full year in its history. Catherine She Glinski covers Buffet and Berkshire Hathaway for Bloomberg News. In recent months, we started to see him find other ways to put the capital to work. He's made a big bed and Japanese trading houses. He's Berkshire has taken stakes in Snowflake on DH. Now we're seeing him say, Hey, I'm willing to put a lot of money into work in stock repurchases. I think that really shows that you know, he is seeing some value in Berkshire zones prospects. Berkshires. Operating profit dropped 32% hurt by the insurance units. First underwriting loss Since the end of 2019.
Uprooted, a Book by Page Dickey
"It begins with an Anton chekhov quote. it says I am in the condition of transplanted tree, which is hesitating whether to take root or begin to wither, and it looks like you took root page. So tell us a little bit sort of set the scene about this transition for us. Well. I. Think in the beginning and and certainly when when I didn't know whether I might with her it was it was very hard to leave. my old garden I'd been there for thirty four years. my husband join me for the last fourteen of and and it was. A place. Created over the years with just tremendous amount of love and passion and and to just walk away from that was was difficult But. After much searching and and lots of. Panic when we really couldn't find anything right away we decided to move to North Western Connecticut and we found a plot of land that took my breath away and. Because, it was full of fields and woods and wildland and a view. Of the Berkshire Hills and It started me on a new adventure and I think that's when. I realized I wasn't gonNA weather. We didn't have to irrigate. Don't worry. She's GonNa. Be. Okay. Oh how how did so so you had been at Duck Hill. For those thirty four years and so you came to start again in said, this piece of property was breathtaking. It took your breath away and. But How do you know where to begin because? Both of us, we were much younger gardeners much less experience crash when. When we began our where I still live around same time as when you went to kill and where in your your work at Duck Hill. So we were experimenting with different things We're at a different stage in our as I said in our experience. You know. Like what lessons? Where did you begin? How did you know what to do I when you got to this new place? Do you know what I mean like what what did you say? I've got to DOT DOT DOT? Yeah. Well, first of all, they were remnants. Of, a garden. As sort of cottage garden in the front of the House and and. And although it, it crossed my mind just wipe it all out I didn't and it was mostly just peonies and. So. I knew that I wanted to play with that and that would be my. Perennial Garden you might say or place perennials. and. Bulbs and a place we walk through every. Time. We go inside and out. So So it would. It would be a fun place to have that sort of a garden. But I realized. Almost. Immediately I didn't want a garden like I had Kale Duck Hill was Full of hedges and. And Boxwood topiary and. It was a series of rooms and it was very enclosed. And this new place where we lived was open to the sky and open to the fields and open to the view and I realized I didn't want. hedged. Garden anymore I wanted something that related to that wildness. So I I think I knew pretty much right away that I wanted a lot of natives in the in the in this. Little. Garden things like M. Sonia and Baptista and astor's and so on. And But then at the same time, I was thinking about what to do about this little garden. I was starting to explore. In the woods we I think we have about eleven acres of woods. And I got so excited about the woods, we have high rocky limestone dramatic woods on one side and low rich. Damp. Woods on the other side and I got so excited about. This wildland that all of a sudden. We were the stewarts of. that. I was almost torn. Half interested in creating a new garden. Half of me just wanting to start walks start pass in the woods and start cutting down the invasive. and. So that was a whole new world that excited me right from the beginning
Snowflake's stock enjoys red-hot open, with first trade more than double the IPO price
"What a day to be a snowflake Red hot open for snowflake there first trade with more than double the AIPO prices is a cloud based software company. Other backed by Berkshire Hathaway. They're backed by sales for so this one has been in the works for a while, but it was a very successful AIPO the stock up 112%. On the day so strong start for
Why Warren Buffett is gambling on Japan’s distinctive dealmakers
"Buffett celebrated his ninetieth birthday doing what a lot of folks like to do when they wanNA treat themselves. He went shopping. Berkshire hathaway has stakes in the five leading trading companies in Japan Sumitomo. Oto Chew Mario Benny Mitsui and company and Mitsubishi Corp.. They. Import. Everything from. Energy and metals to textiles and food and. This is. Clearly a big move. In of itself. What does this investment on buffets parts? sadie. Let's start there. Well once again as always we have to remember that with Berkshire hathaway sometimes, the numbers almost feel like cheat codes because six point five billion dollars is not a huge investment for Berkshire Hathaway stake in Apple at stake. In Coca Cola are much larger than this but buffet for after years of not really looking outside of the United States has really started doing. So he's bought Israeli companies about German companies he's invested in China in Brazil and now he's investing heavily in a very interesting segment of Japan. These are extremely economically sensitive trading companies. Japanese are called Sogo Shosha. And they are they will trade in almost anything and I believe that one of the reasons that he wants to have he wants the stake in these companies is that is that because these companies are chameleons they will invest in everything they have joint ventures all over the world and so yet another way for Berkshire Hathaway to have additional boots on the ground additional is nears looking for new things that they can invest in. So really interesting timing for this it may be you know again, his suggestion I in a soft way that it's really hard to find opportunities here in the US that the Japanese market relatively inexpensive and. Like everyone else you know I'm sure a lot of everyone woke up this morning and was surprised by what Buffett has done and. By now, a lot of people are saying that makes that S-. You look at those five stocks. They're all up. You know five to ten percent. It's. A lot of times when buffet makes them move? One of the things we talk about is how buffet is to tell people like look just don't blindly follow me you shouldn't blindly follow anyone do your research and all that. But Is this something US investors should look at given what the comments you just made about the relative value of the market in. Japan. The best performing stock market in the entire world over the last decade. Stock Market Stock Index is the S. and P. Five hundred, and it's really not even close when you don't denominated in dollars. It's the number one. Japan's is actually since Ave came to power it, it has outperformed every other major stock exchange with the exception of China and the US S. and P. Five hundred it is a we tend to think of it as being more bond. I think American. Investors still have a dramatically too low exposure to two markets that are outside of the US. And Yeah there are I think that in the US almost every opportunity has at least in some ways been monetize whereas in a lot of other countries that is not the case at. Japan. Definitely one of those countries.
Berkshire Hathaway takes stakes in Japanese trading houses
"We've got some headlines coming on the Bloomberg terminal regarding the stakes that Berkshire has taken in five Japanese trading companies. They now past 5%. Now Berkshire, saying that the holdings in these companies were acquired over the past 12 months would be careful about making the connection to the of a resignation. However, Berkshire has gone on to say it may boost holdings in these companies by up to
"berkshire" Discussed on We Study Billionaires - The Investors Podcast
"And there are other decisions like that it is not more compelling to buy the shares now than it was when we were buying them it's not it's not less compelling as wash but we didn't do any we got the price is not gotten to a level or not been at a level where it really feels way better to us than other things including the option value of money to stop up in a big big way so. I JUST WANT TO START OFF. By saying as we've played all the questions we're gonNA play for both episodes. I think becky quick should be the only person it's allowed to ask questions at these meetings are now on like having gone to my fair share of these meetings and sat through them like dude. Becky crushed it with her questions. She was asking really good questions. And when you go to the meeting. I'm always highly annoyed at half the questions that come up. Because they're just so just nonsensical and of no value add. I think becky crushed this. So becky quick. I'm sure you're not listening. But in the very odd chance. It's your Bravo Great Yup. I don't really have much to add on his response because I think he just totally sidestepped it and I don't think that he even provided a good response. I think they're wanting him to get into a wire. You seeing the valuation different now than you were when you purchase it thirty percent higher. And he just didn't want to even broach the subject so I can't really comment on it. It seemed to me like they might be interested in conducting repurchases here in the future and so he was fighting the question but stig. I'm kind of curious to hear what you think he always get. How do you value stocks question? And he also gets the widest berkshire-hathaway worth now. Could you please save me a lot of time? So you know I don't I don't have to do the valuation. He just give me a number and I can just put him a limit or and so. It's interesting reading through buffets latest filing. He bought most of his stocks back at two hundred and forty dollars so the person asking the question would be thinking. Why not just buying a ton back right now? You know. There's a lot of focus on that cash. Position has and a lot of people wants us to pay a dividend interesting enough not to many of the actually shareholders. But a lot of people want him to pay dividends or buybacks. Yes so especially in recent years. You've seen more questions. Popping up. With spiky quick was also referring to the amount of she s that he's buying back is around one percent on annual basis. That's a buyback yield right now Kim. The current market cap now buffet sold of ended a few different things that the fact has changed. And what I put into. That was that you can't really use the buyback price of Satan fourteen two months as a benchmark because even though that Berkshire is now trading at coal tournaments and lower the value of the business also changed because the value of the discounted cash flows in the next few years have changed. And that's just basically what makes the biggest difference like whenever you start this kind of those cash flows and try to figure out what is the intrinsic value days from a mathematical perspective. That is why something like a crisis actually has a somewhat significant impact even an accompanying that has been assistant for Long berkshire-hathaway but clearly it's not anywhere near twenty percent whenever that happens but what also read into this was he talked about opportunity costs and it's just very important to understand like yes. Berkshire is cheaper but if all other stocks and universal also cheaper you know that's whenever you need to figure out what you should do with your cast pile so I think that was one key takeaway. I have and then the last thing was that. It's a very thinly traded stock even in a time like this so when they were the stock plants like percents but looks like it's more or less or night. It really wasn't but for a company the size of Berkshire Hathaway. It was almost like overnight. Can't just go in and buy like all start at whenever it hit one hundred. Sixty two wasp before bounceback back. Let's take a quick break and hear from today sponsor. You know how it feels when you find extra cash in your pocket now. Imagine you found five times that surprise money. That's the feeling with capital one. We're new savings account earns five times the national average savings rate on any balance. That means you earn more every day. Just for saving this hassle-free hardworking savings. This is banking reimagined. What's in your Wallet Capital One? Na member FDIC or right that was the four questions that we selected from the Berkshire Halloway annual shareholders meeting. We always thoroughly enjoy him these discussions and share them with you but at this point in time the show we'll play question from the audience and this question comes from Jeff. Here we go. Hi Stieg High Preston. My Name's Jeff Mason. An investor in Victoria British Columbia Canada. I wanted to thank you both for all of the knowledge that you've shared all the great guests you've had on your show. It's really improved my confidence as an investor. My question relates to some advice that I've heard from guests on your show and I've also heard it in some of the great trading books. The advice is don't sell your winners. I've tried to follow this advice in my own trading and investing and I found him often disappointed. It doesn't seem like very good advice. So my question to both of you is. Do you follow this advice. Do you sell your winners. And in what situations would you definitely hold onto your winners as long as you can? In what situations would you definitely sell the thanks so much and have a great day? Jeff great question. I think first of all I look at a sell order as a point where I'm going to have liquidity and then I have to have some other opportunities. That's going to perform what I think the previous holding is going to do. So if let's just say I own something I have a mass of gain and if I sell it. I'm going to have a massive capital attacks. A capital gains associated with it. And so let's just say that. That was a long-term holding so whatever principle I get from the sale. I now have fifteen percent less of that. That's lost due to capital gains tax when I employ that new capital. What kind of return am I expecting to get out of that? And then when's IT GONNA basically exceed the previous holding previous valuation? That I had for the business as far as return goes so. That's kind of like the mathematics behind my thinking. Whenever I do exercise a sell order another time that I'll sell that doesn't follow. That model is if I think. There's something fundamentally wrong with the business and I think there is some type of issues and I just want to liquidate the position. So that's typically because impairment on their balance sheet for one of their major assets that I think there's some competitor that's come in is going to basically take all the market share and going to cause a lot of punishment for the pick so those are kind of the two main ways that I look at it now. How do I manage some of that risk? If you ask me ten years ago I would tell you that what I just described. His was exclusively how I look at selling positions today. I would tell you that. I also incorporate the momentum status of our we have a momentum to want or finance one of the Nice things about this momentum tool is it looks statistical volatility ranges of a pick any pick and it's tailored towards that pick so like let's say the S. and P. Five hundred going up it's going within a certain volatility range and then whenever it steps outside of that volatility range the momentum says something's different this is most likely going lower because it's outside of this trading volatility range and then it turns into a red status so the way that the tools working is it's basically selecting a stop limit for that underlying pick and that stop limit is dynamic and so as the price goes higher and higher. The Stop Limit keeps adjusting higher and higher. And so I use that tool especially for indexes by use that tool. Because it's really hard to come up with an intrinsic value for the S P five hundred outside of just looking at the price to earnings and so my opinion is that if the price goes through that volatility range in hits that stop limit on an index. It's more macro related than it is earnings-related functioning of the business. So I use that to also assist me in knowing when to stop holding winner and so for example like the S&P five hundred momentum told the thing has been green for a very long period of time and recently went red and then it just went back into a green status. So there's a tax realization to that but there's also the implication that I'm protecting my downside risk because if the market would crash forty percent in a day which you had in one thousand nine hundred seven or some other events. That were very deep. You're protecting yourself from those types of events so I would add that in there as well as a way that I also protect downside risk in that I continue to hold winners that. Just keep on running really like the Christian too and actually I would like to put into the mix if you funds about buffets before I go into my own strategy was very similar to what you also described there before Preston but I think buffet is one of the best example of not selling your winners. The vast majority of buffets portfolio is concentrated in just a few companies including American Express Apple Bank of America and Core Cola. Very famous example of a position has worked really really well and all the investments that adjustments before have been very profitable and side from the application that was initiated. Back in two thousand sixteen is all socks that he has health for very long time. Now I really agree with that sentiment because in the sense that I really Sell winners to generally jumping out of windows heart and if you find relief good stocks. That are compounders. You don't want to jump in out of it too often part of is tax as precedence before you live in the US that's fifty percent so in that sense you just have to be more right than wrong so really to sell you. A it has to trade a lot higher than intrinsic values to say a company like in Berkshire Hathaway trading one hundred and seventy two today. If there was going to three hundred tomorrow yeah I would take the tax loss out. Take the tax on that and sell my position but the more capital gain that you have earned the Harvard simply becomes you know. Colby example like you mentioned before buffet build that position for one point three billion dollars in the last time I looked it up. He was trading and around eighteen billion dollars. So it's a lot of taxi has to pay. Even though the cocoa at times have been quite expensive. It just doesn't make.
"berkshire" Discussed on Invested: The Rule #1 Podcast
"Huge and that totally and I think that they are on and and the reason they're doing that is because the federal government thinks they're critical industry. Nobody thinks your critical industry. Hate to tell ya but nobody's coming to your rescue except you. You better start rescuing yourself ahead of when you need it. The worst thing about banks. They will only lend you money when you donate it. So if you don't need right now go get a pile of it if you need it right now. I'm sorry but you probably not gonna be able to get it too late. So we're the wise. Follow the the examples of the best CEOS in America who are in trouble right now and they are all loading their balance sheet with debt as fast as they can get it as much as they can get it so he should do the same thing I think I mean. That's just an opinion. I'm just saying it's just an opinion. Just an applied do not see why that is any less ethical than what Boeing's doing so let's get back to me buffet and Berkshire Hathaway. I won that one. Tonight you're taught me. What did you think about Greg? Evil sitting next above it and making comments well. I think that's an obvious indication of WHO's GonNa take over of Warren. Get sick this year dies. I think absolutely he's pointing to Greg. Able I don't I don't and Greg is younger than than a Jane. And that's probably why as she'd isn't up there Vowed genius in buffets been raving about him for years. But you gotta you gotTa get a new guy in there. You Probably WanNa get a guy who's not seventy you know it's like it's like Charlie Munger. Charlie Mongers Board Meeting Daily Journal. Like we've just brought in a new director who's seventy five which dropped the average age of the board by ten years or something? That was funny. It was really funny so I think that's a big part of you've got to to really superstars there and I think he picked the one. I mean it's not a final pick but I think that's an indication who's going to be running Berkshire obviously. It's a very strong indication of confidence. Yeah A to that question of who runs yeah. I don't know but I found that he was he was all right like I didn't really feel like he added that much he didn't. He definitely lacks the sort of interesting talk that the buffet gives and the Banter in the stories. And the you know ways of explaining things that make profits so interesting and and obviously hardly anybody is like buffet. He's one of a kind but it was very much like if this is the future. I don't know how much how much longer people are. GonNa get excited about it. But who knows it's an interesting question about Berkshire itself I mean. Buffet was pretty clear that At in previous to the meeting that prior to the meeting that he wouldn't think berkshires massively undervalued. Right now He basically that you were to sell off Berkshire in pieces and pay the taxes And the liabilities. Pay All that off By the time you cleared all the tax bill Which would be enormous. You would have a break even more or less and that might have been a little sobering for Berkshire investors because the stock went down ten percent. This already well not just that he also answering the question about why they didn't buy stock back in March. It wasn't just that they want to conserve money. Although I think personally I think that's the main reason but and why would you spend money buying Berkshire stock unless he had nothing else to do? But also because he said the intrinsic value of Berkshire went down last month burst of all he lost was it. Six billion on the airline investment and then Many of their businesses have been really adversely affected by the Down he said Berkshires intrinsic value has changed and so he didn't really think that actually the price change showed a massive discount the way it would have seemed and I thought that was really interesting so I don't. I wasn't real surprised by that the fact that he didn't buy a lot of Berkshire buying a little. I mean a little few billion dollars worth of March or April now but over the last year. Oh yeah when they bought exactly but they didn't buy a lot and so to me. It's been he's been saying right along more. I think what I'm hearing from buffet as more. We're going to see a time when we can by Berkshire I really cheap. Yeah hit it. I think it's that it's that plus we would rather buy some massive awesome business at eight seventy five percent discount because we're the only ones who can cause we're the only ones with a hundred billion dollars to spare and still leave forty billion on the balance sheet to cover all of our expenses and random obligations that come up so. I think that's what he's hoping for and he doesn't WanNa Penny Ante little purchases here and they're not these being for that he doesn't want the US to crash. But I think he he sees it as a possibility and I think we should too. I do too. I think I mean. I think we're GONNA wrap up here but my prescription for me is going to be sit tight be patient. Charlie said we make money when we wait. That's what I'm planning on doing. We've certainly picked up a couple of companies without. We're we're pretty nicely priced in. And they've gone down from where we bought them and we WANNA buy more But we're sitting in a lot in cash and I think that that's I'm very very comfortable without right. Now that this market will look a lot worse. I think there's a very good chance. This market will look a lot worse in a year that it looks right now and we'll see we'll see if that's true. Yeah we'll see. He didn't answer becky too quick. Didn't ask my question which I was bummed about my question. Was My question was considering that we're in a recession. So many small and medium businesses are going bankrupt and not gonNA come back. People are losing their jobs. Unemployment is at a massive high. Do you think that Wall Street is completely divorced from the plate of Main Street? Ooh That's very sophisticated question. What do you think the answer is? I think it is divorced and I think we're going to look back and go these. What's the vote was that occupy Wall Street thing? We're going to look back and go these like fat cat. Rich people were sending stocks way up with no justification except for a few of them are doing well legitimately have good earnings but the rest of them don't and yet for some reason. Wall Street has suddenly gone. Long-term mysteriously and companies with no earnings going but in a year. They'll be fine doesn't me to any sense at the same time. People are losing their jobs and it's not just jobs it's small and medium businesses are many of them are not gonna come back and they weren't able to get the loans from the government because the US government screwed up the process and that's a whole other story but it's really discouraging and I just don't see these these two. I don't know it's like these two opposing forces but they're not really opposing the kind of Har- and they just don't make sense together. I really wanted to hear from him about that. Like this market is is almost back at its high like why considering all the data why nobody asked him that I can tell you why why and I think I'm very likely to be right. And that is that the market meaning. The vast majority of our money in the market is run by professional fund managers who have learned over the last decade that you should never fight the Fed. It's a it's a fact of life and it's a. It's like a headline. Don't fight the Fed and anybody that's fought the Fed meeting if the Fed reserve raising interest rates. You think the market is gonNA go up and you buy stocks and it goes down like a brick because you fought. The Fed raise interest rates market. Goes DOWN THEY DROP? Interest rates market. Goes up these guys have learned that over and over and over and over again and they're fundamentally traders even though the so called long-term investors dot hold socks more than about three months and they're judged on their three-month performer sector judged on a one month performance. A years forever. You know years like you know light years away so you. You may not have a job in a year. You'd better perform now. And so they can't sit there and wait while their peer group jumps in as the Federal Reserve cuts rates to zero and promises with the federal government to put in six trillion dollars. They can't wait if they wait. They're gonNA look so stupid in three weeks which they did anybody. That waited look like an idiot. The market jumped back boom. And so guess what they. They've made it more volatile there jumping in just out of pure momentum guessing nothing to do with mainstream nothing to do with what's going to happen a year absolutely blind to it out of necessity to protect their jobs. That's why it went Jack and backup all right there right again. Do Not Take Silence. Ask Agreement. Well proportioned give my love the Nuno and stay healthy and you all stay healthy out there to you guys and we'll be talking to you next week. Thanks guys next week. We're going to have an interview With Dan Heath great book called upstream. So check that out. And then we'll be back talking about companies because we've promised you guys good companies that we like and that's what's coming could good depression companies to get onto that list to go. Thanks everybody hi guys. Thanks for listening to invested if you enjoyed this episode and you want more information including show notes and more episodes visit us at invested. Podcasts DOT COM. There's a special offer waiting for podcast listeners to attend my three day investing workshop absolutely free so just head to invested PODCAST DOT COM. Everything discussed on his podcast. It's either my opinion or Danielle's person and is not to be taken his investing advice. Because I am not your investment advisor nor have I considered your personal situation as your fight. Do -ciary this. Podcast is for your entertainment and educational only and I hope you enjoy it..
"berkshire" Discussed on Venture Stories
"Made me look very sophisticated and sizeable And in reality it was just me and my underwear flipping my parents basement. I was good at talking and done so much business. Throughout my teen years that I was actually able to convince people to pay me a reasonable amount and give me a chance and so very quickly. In the first couple of months ago I started making twenty thirty forty thousand dollars a month and I'm going will. This is amazing. You know I can do whatever I want. I get to work on all these amazing problems with really interesting startups And you know I'm getting paid. Us dollars living in Canada. And so I had pretty high profit margins and I just kept doing that. I never moved to Silicon Valley. I kept getting more and more clients just through word of MOUTH BECAUSE AGAIN. No one was doing what we were doing. And you know we were pretty good at it and I started hiring first couple people. And that's how mental. I've got started and so what ended up happening was Was Living in Canada. I slide on Silicon Valley I would do a whole bunch of meetings and I just never mentioned. I was in Canada. I wouldn't hide it if someone asked me. But people just assume based in San Francisco and so and there was kind of a market price discharge so we charge the market price. So I'd fly down Silicon Valley. I do all the client relationships. Close all the deals. Fly back up to Victoria. Started building a team here and in Canada in Victoria. Especially you know we could pay exceptional high market salaries but still make a good profit margin so agencies typically are actually not very good businesses. They usually have like five percent margins we could operate with much higher margins and so. I had a good problem Which was we were profitable in. We're sitting cash. And I had no idea what to do with it. And around that time I started being about base camp and falling Jason Freedom David Hanson and I looked at these the SAS business that they were building and I was so jealous my business I had to get on planes. That had closed deals. There was always You know you always put the train down the track down in front of the train and win your next project with their business. They could build soffer once and they could sell it to people passively on a self serve model and make money while they slept on a recurring basis and so that appealed to me and so I started building my first SASS product. Which was called ballpark. And it was basically suffered a help me. Run my agency so metal. We're constantly sending estimates doing time tracking so logical thing was. Hey why don't we built some south for to help us with that? And I'm sure there's some other agencies want the same thing so we launched it and it was. It was Okay Success. We made you know a reasonable amount of money for what it was and how much it costs us But I started realizing you know. Some of the challenges of SAST are Indian competing with venture. Businesses I ended up. Starting another SASS. Company called slow Which was very early. Project management kind of astonishing editor which we still own today And then I also started a business called Pixel Union where we partnered with shop affi- back when they were about ten people to help them power to bisky helped power their themes marketplace. So we brought great designed to the shop five platform And built a whole bunch of games for the platform and that was kind of an accidental business. We kind of thought that was something that We would do as a favor to the team shop like you really liked them. And maybe we make a little bit of money. But it ended up turning into a very sizable business. And so we're that left me was I was running. An Agency is writing to Saas software companies as running a rapidly growing digital goods and themes business And I had a bunch of other business ideas which I there are too stupid dimension. So winning all these different companies You know I had like fifty employees or something by this point in kept doing that until the twenty twelve and in two thousand twelve. I just hit it complete wall. I was running too many companies once. I didn't really understand how to higher executives All the companies were jumbled together and I really was just kind of unhappy overwhelmed and so I was pouring her heart out to a friend of mine that he said Nude One. You just saw one of these companies that will take the pressure off. That'll put money in your genes. You can kind of figure out what you WANNA do next. You can start investing and so I did that. I ended up selling Hicksville Union to family office and suddenly I went from you. Know I'd always had cash flow but I suddenly had money on the balance sheet had cash a pile of ads to do something less and I realized that it wasn't sustainable. To just keep growing more and more starting warm or businesses I realized starting businesses with very very difficult and you know I really needed to just focus on the existing companies that we already had and so I started looking at stocks real estate conventional investments and those things. Were always very foreign to me. But I always heard the name. Warren Buffett and. I didn't really know. Think of him. And when they picked up a book about him and started reading. And when I read about this guy who has seventy seventy plus businesses four hundred thousand employees but spends all his time reading talking interesting people buying new companies and really doing whatever the hell he wants. All Day he famously brags about Having nothing on his calendar I just didn't understand that it was possible to have so many different businesses and have some be doing so many things without actually running them all and that sounded pretty good to me and so went deeper and deeper and continue to read about his company. Berkshire hathaway in the history of that. And I went you know. This doesn't seem like rocket science. I think we could actually do this. And we had over the years spoken to private equity firms. And you know we'd gotten stab you know in shut? People have been interested in buying the businesses and over and over and over again. They just made it way too hard to do this. Kind of miserable three to six months trudge of you know really really deep. Diligence you know auto tons and tons of in-person meetings in generally just a lot of wasted time and energy and renegotiation and so I started thinking about what would the founder focused version of this. Who WOULD I have wanted to sell to if I sold my business and so At that time You know my business partner. Chris in our formalized Are Holding Company tiny and we started buying businesses instead of starting them and so We hired CEO's to run all over existing businesses which had a few speed bumps but for the most part Went really well and we started buying these wonderful Internet businesses. That were found to run and we realized we just had this great advantage because we're founders ourselves and we're operators and we know the problems it founders have and what they do on a here and don't want to hear and you know ultimately people will realize that people want a great home. They don't just want the maximum amount of money on the best terms that they actually also care about their employees. While being longevity of the company the company will exist in five or ten years that the brand would be tarnished and really that their life's work will be protected and so You know very quickly. We're able to kind of establish this brand and start working with You know the founders of dribble and all sorts of other incredible businesses to figure out you know a long-term home for their businesses. And so we've been doing that for about seven years We're up to twenty five. I twenty five businesses twenty to twenty five something like that and And then on the side just as a result of working with a lot of interesting You know venture. Investors have equity investors entrepreneurs. We've also just passively made a bunch of venture investments and so he made about eighty venture investments. To be honest. A lot of that was more just to support people on our network and it was just kind of a happy happy accident. Tests putting down roulette chips on people like to support them But you know over time. That's also become a sizeable portfolio and so at the end of the day You know fifteen years later. I've kind of stumbled my way from Freelancer.
"berkshire" Discussed on We Study Billionaires - The Investors Podcast
"For having me guys all right guys so this show. We play Chris from the audience. And this question's very timely. It's from Nathan and Christian is about berkshire-hathaway high presidents take. My question is about Berkshire Hathaway in stock. It owns in his portfolio. Berkshire already owns a specific stock in its portfolio. How do you think about considering a by more than individually taking into account the fact that you already have some exposure to the stock through charts for Photo Nathan thing? That's a great question. I don't think that there are any issues. But you getting a bit more exposure to any of the stocks in buffets portfolio. Because when you do the math you have very little exposure to almost all stocks in his portfolio. Keep in mind. The Buffett's stock portfolio is less than half of the value of books. How the win the first place? They have a lot of operating companies to none even apple. You have two months exposure to now is the biggest position in Berkshire hathaway portfolio which is more than ten percent of the market cap off Berkshire hathaway in the first place and is almost a third of the entire public trade portfolio. But even so consider if you have ten percent Berkshire and then ten percent of that are made up of apple she s you still only have one percent exposure in your portfolio to apple. Now Bill is a little more. It might be closer to one point. Five one point seven in this example if you have ten percent in Berkshire hathaway but any case. It is very little. So even for buffets portfolio that is very top heavy and just an example if you look away from the top ten holdings the eleventh biggest holding is just a bit more than one percent above its entire public trade portfolio. So it's really not significant. It's really my way of saying that you shouldn't think of Buffett's stock picks at all whenever you consider your own portfolio unless you only hold berkshire-hathaway in your portfolio or very close to only hold on that one stock but where do think that. You should pay attention. Is THAT BUFFET. Like all the money. Managers with more than one hundred million dollars on the mennesman has to disclose with surprise the buy stocks. And that may give you good indication of with stocks that are currently undervalued. You can find those prices and those picks at guerrillas for free and we even have a resource Academy where can check out of its picks together with all the super invest us like spear Mona's pop rai and take a closer look at their portfolio. We'll make sure to linked both of those resources in the show notes and then four times a year. The stock picks become available. It's February fifteen may fifteen August fifteen and November fifteen. That doesn't mean that I'll do the same thing as they do but I do. Use Office picks and other supermassive specs ask inspiration and perhaps put a few on them on mental. What's List for further investigation? So Nathan great question. But I really can't add much value beyond Stig's response because I pretty much agree with exactly what he said. So with that Nathan for asking such a great question we're going to give you free access to our intrinsic value course for anyone wanting the checkout the course go to t I P intrinsic value dot com that's T- IP INTRINSIC VALUE DOT com. The course also comes with access to our T. I. P. Finance tool which helps you find and filter. Undervalued stock picks if anyone else wants to get a question played on the show go to ask the investors DOT com. And you can record your question there. If it gets played on the show you get a bunch of free invaluable stuff. All right guys knows all the press down. I had for this week's episode of the PODCAST. We see till again next week. Thank you for listening to ti to access our show notes causes or forums go to the investors. Podcast don't come. This show is for entertainment purposes only before making any decisions. Consult a professional. This show is copyrighted by the investors. Podcast NETWORK. Written permission must be granted before syndication forecasting..
"berkshire" Discussed on We Study Billionaires - The Investors Podcast
"Well I think their different ways of doing it. I tend to be more on the simplistic side of my investment stuff. Like if I can't write it on the back of an envelope or on a short piece of paper and a few sentences then it's probably too complicated for me to take a swing at so for Berkshire. The first passed a look at it. And this will sound a little bit Glib because the answer is going to be kind of silly but if you imagine Berkshire as a bond that yielded ten percent and I think that's a reasonable actual approximation because their return on equity has been ten percent for quite a while and it's likely to be around ten percent for a long time just based on the projects that they're putting money into thinking specifically regulatory yield of NSF and be h energy. So if you imagine a bond that yielded ten percent and you could reinvest the coupons in the business at a continuing ten percent. What would you pay for that bond? Today how much would the market pay for bond? That yielded ten percent in my mind. Safer than Treasury's Today's rates right now. I mean it's like approaching it goes towards infinity right. I mean that's why I said this is sort of like the Glib answer. It's a ridiculously high number. Which I think is more a reflection of today's rates being in my mind kind of ridiculous and not so much a reflection of Berkshire so let's go to a more real answer than some of the parts is away a very popular way of analyzing Berkshire which is basically. Just take all the different little business lines. Add them up and come up with some kind of a number so my back of the envelope. Math for some of the parts is yeah. Let's call energy worth about fifty billion the railroad worth about one hundred billion the. Ms Are the manufacturing service retail is calling one hundred fifty billion insurance call at a thirty billion and then an investment or folio. Three hundred seventy billion ish. You add all those up and you totals up to about seven hundred billion which implies about two hundred eighty dollars per share for the B shares. Quite a bit north of where we are right now so another way of looking at it the business would be. Let's just do a simple? What has Berkshire typically traded around as far as price to book goes into the answer. There is roughly. Let's call it one point. Seven five times price-to-book-value. Today's book value. Let's call it. Four hundred twenty five billion that gets us to a seven hundred and forty billion dollar range of potential valuation. Okay that's in the Ballpark of r sum of the parts. That makes sense. All of these things are all just triangulation. Data points like anyone is not better than the other but if there are all kinds of telling you the same story then maybe you're onto something that's how I think about this. And then maybe the last one would be called like a two pronged approach. And that's basically like add up all of the investments and then try to put some multiple on the actual earning businesses and then add those together. And what does that number tell you in my rough calculations? Let's call it. Two hundred sixty billion for Equity Securities and other one hundred thirty billion for cash. That gives us a three hundred. Ninety billion dollar for Prong One and impromptu will take twenty four billion dollars of operating earnings and multiply that by ten that gives us two hundred forty billion. Add those two numbers together and you end up with six hundred thirty billion as another mark so all of them. In the seven hundred ish billion dollar valuation range so just to recap that. You're saying that the price of the BCS that's right now trading around one hundred ninety five we'll looking at around two hundred and eighty plus minus very interesting. Thank you for breaking that down for us. It is interesting what you would mention there about the potential discount because it is a conglomerate. I guess you would even have. People say that is actually the competitive advantage offer that is a conglomerate to the money would go where it's best used. I guess there's also a discount to Berkshire hathaway because it has not been performing as well. He'll the pastor. Yes it's actually been trading this p five hundred. I think that's probably also one of the reasons why whenever I talk about being good price and all that and I think most listeners were already know I am long. Berkshire Hathaway Cynthia take it for what it is whenever I'm complimenting Jag about why that's a great investment I am obviously biased and it kind of leads me into the next question which is something that which is about position sizing but it's just always such a interesting topic to discuss especially for company like Berkshire Hathaway many investors have different rules from cells when it comes to assisting sizing for example invest might have ruled that he or she won't bill position in a single stock would more than ten percent of their portfolio now. Warren Buffett is previously in his letters to shareholders commented on how many investors holding to how the way as their biggest position in the portfolio most notable himself with more than ninety nine percent of his net worth estimated that more than ninety percent of the shareholders has books. Halloway ask by far the biggest position. Please elaborate on how you see position sizing and if Berkshire Hathaway is an exception to the rules that we may have imposed ourselves giving that is such a diversified company already and may have the downside protection that you mentioned before it very much comes down to your own personal preferences at risk tolerance of how much exposure you're willing to take on any one facet of business or economy or anyone person so the first thing you have to ask yourself is about the opportunity cost. Do you have anything else that might do better than a relatively safe. Call at ten percent or Anam type of return profile if you do then Burke Shire may be sort of an anchor in your portfolio and maybe you don't want too much of it. I don't think that Berkshire is terrible. As a bond proxy maybe especially for someone who's a little bit younger relative to the prices of bonds today? So how much are you willing to do you want as a bond allocation for? Shire may fit the bill of that a little bit like we just talked about you know if it was a ten percent on a lot of portfolio managers who I've talked to and respect. They often will use Berkshire as a cache proxy so if they don't have anything else to invest in rather than whole cash they'll just stick it in Berkshire. I don't think that's a terrible strategy. However the whole point of cash that it doesn't move around at all and Berkshire definitely moves around. I mean in one thousand nine hundred eighty eight or was trading at three times price to book value. Right and typically. It's been one point seven but we've seen a below book value also so to think that it's just this like solid anchor that never moves around provides the liquidity that you want when you need it and I'm not so sure about that. The last thing I would say is that because it is so. Us centric it could form a bit of a home country bias. That is common for a lot of shareholders. People tend to own more whatever country that they live in because they feel like they know it better and if so if you are a US investor and you already own a lot of other US based securities and things that are tied to the US economy then being long Berkshire is just more of that same thing and so you may not have as much diversification geographically speaking when you may end up suffering even stronger to a home country bias but all in all I mean. It's pretty hard to imagine that. Berkshire in Penn. Twenty years is not worth more than five hundred billion dollars so if you have the stomach for long term. You could sleep comfortably at night. Earning probably a ten percent. Roughly return on equity over a long period of time and there are definitely scarier and harder ways of making money. I think you bring up a really interesting point and a good point so jake thank you for your thoughts about burkes. Halloway is always a pleasure to hear how people think about that business that we've been following since the very first episodes here and the masters podcast now. Speaking of that I wanted to end the interview on the slightly more abstract note. Because not only are you a great investor self you also one of the thought leaders in the value investing community or like to relate this to whenever I first started become interested in value investing. I think my motivation was like any other. I wanted to replicate if possible. Howard Buffett pick stocks and that was why.
"berkshire" Discussed on We Study Billionaires - The Investors Podcast
"High integrity decentralized to the point of abdication as Munger said capital Allocation Stock Selection Insurance underwriting king abandoned opportunities all these things are in the ethos of the company. I personally believe that there will generally be okay. It's hard to imagine that there isn't some impact so if I kind of go through each of the businesses like the insurance operations I think those don't change a ton thick. They've got plenty of brainpower with G to still manage that part I know. Buffet helps jeep but deal flow. I think absolutely has to be impacted. How many business founders sell their business for less than they could probably get somewhere else to sell to buffet specifically that I think is a very real advantage that he's built as a way of cashing in on his reputational capital that he's built over the last fifty years of doing business the right way. He deserves to pay less than market because he has done such a good job with his reputation. I also think the performance of any CEOS in the subsidiaries of all these different companies. It could go down. I mean when you are having to send a letter to Warren Buffett about your operations for that year and report to local Warren. Like how you did and you WANNA make him proud. He's not around. It could slip a little bit. I mean I think that's just sort of natural human nature. I think the portfolio management side of things will be just fine with Ted and todd. I think both those guys are really sharp but target imagine it. There isn't less remote host worn and Charlie just mostly probably because of the deal flow aspects. They have to get in line and pay. Whatever else is paying for acquisitions? You're just not going to get the same kind of deals and therefore the same kind of returns on the businesses that you're buying because you're probably GONNA have to pay a little bit higher price for everything so on net. It won't be as good but the ethos still makes it one of the better companies in the world as far as how clean they are and how they do business. Suject rule simply. What's the biggest threat to Berkshire Hathaway or opinion? I would probably say complacency and that can come in different ways. I think that this management team. That's been around since nineteen sixty five deserves the benefit of the doubt on all things they've earned it however is a shareholder you can get complacent about when things start slipping a little bit for instance picking the book value out of the report. It's a little bit of changing the goalposts somewhat. I mean the timing of when he's done it and there've been a few other changes. I won't go into them because they're they're down in the weeds for most investors. But if you want to read a deep dive on that I would suggest checking out semper. Augusta's letter I don't know if you've ever read that one. But Chris Bloom Strand I think is one of the best analysts on the planet and he does a call it. A fifty page write up of Berkshire every year. He's a true true expert at this company. But anyway I think he's highlighted some of the places where they will change a little bit of things in reporting or move parts of the business and it'll be a little bit less clear how that business did or what the returns on equity were for that segment of the business mostly in the name of trying to make the numbers easier for the average person to understand but for the very very deep dive analyst. It clouds some of what we used to be able to know about the company so those little things can slip here and there that the disclosures part of things because the management has earned such a reputation. You can get complacent about just assuming that they're always doing the right thing all the time and that can get you into a dangerous place. Let's take a quick break and hear from today sponsor brought to you by capital one. You know how it feels when you've saved enough for that long awaited home edition now. Imagine saving enough for an addition on that addition. That's the feeling with capital one. Where new savings account earns five times? The national average capital one is helping you earn more towards your savings goals. This is banking reimagined. What's in your Wallet Capital One? Na member FDIC USPS shipping rich are increasing so now is the time to save the central online from Pitney bowes starting at just four ninety nine a month with central online from Pitney Bowes is just clicking send you save up to four percent off. Usps or two male and for being the investment podcast listener. You receive a free thirty day trial to get started and free ten pound scale to ensure that you never overpay you can now print shipping labels and stamps right from your computer schedule package. Pickups Amtrak shipments from departure arrival and just for four ninety nine a month you can also calculate exact posted online and perhaps most importantly avoid trips to the post office go to PB DOT COM slash. T I P to get this special offer for a free thirty day. Trial plus a free ten pound scale to get started that's PP DOT COM slash T. I P experience. A savings initiatives cost a free trial of central online from Pitney. Bowes all right back to the show interesting speaking of those analysts and those people who are really into it. I have a very nerdy. Gigi questions for you here now. Jake how do you value the earnings retained by burks? Non Controlling investments in public companies game that only dividends are reflected in operating income. And perhaps you can just explain the framework behind. Why is that even a topic worth discussing sure? So if you imagine these companies that are owned by Berkshire inside of Berkshire but they're publicly traded companies and they're doing their own business they're generating their own cash flows and sometimes they're paying dividends to Berkshire and so last year there. Ten largest holdings in their securities portfolio delivered three point eight billion dollars in dividends. They got sent to Omaha. Checks that showed up in the Berkshire checking account while those companies had another eight point. Three billion dollars in retained earnings last year. So that's money that's created inside of the companies that they own but that Berkshire doesn't really have control over it. It's still within the company and when I say that eight point three billion dollars that's figured out by taking the percentage that Berkshire owns of the company and then applying that percentage to what the total amount was so just to make the math easier. Like let's say that. Let's say ten percent of Apple. An apple earned one hundred billion. Will inside of that you could imagine that Berkshire Kinda earn ten billion through their ownership of Apple. I think you can't assign a dollar for dollar valuation to those earnings is that it could very likely be that company. That is making the decisions on that dollar. Where does it go to could be making bad cap allocation decisions and even making that dollar worth zero like we've seen that before with companies that make stupid choices with the money that's generated? It does not accrue as shareholder value. It ends up disappearing so the first kind of metric that we have to look at is. What do they do with the money? And I think buffets obviously trying to choose companies that have the ability to invest in projects that will generate further returns on capital. And keep this engine running and even growing and so you start to see why he's such a big fan of buybacks is because that instead of that dollar inside of that portfolio company going off into maybe a project that is destroying value. Maybe it gets bought back now. And His share of the company now increases. Obviously the price paid matters for that as well. So if they're overpaying for their buybacks than they are destroying value for the remaining shareholders including Berkshire and then the other part that. I think you should think about there. Is that money stays within apple or wells Fargo or wherever it is that Berkshire owns berkshires. Not Having to pay taxes on it at the moment so there's already call it a fifteen to twenty percent. Maybe even twenty one savings by not sending that money to Berkshire to them control. So there's no easy answer there because it's very fluid on like what do they end up doing with the money that determines the future value of what that retained earning was worth but those are some of the parameters that I think about I look at the retained earnings inside of the portfolio companies. You know it's fascinating. This is a topic that Buffett has been talking about a lot lately. I think this is a great accounting discussion. And it's something that many young investors don't understand. I Know Stig and I have talked about look through earnings for the non operational subsidiaries numerous times on the show and it's really neat to see him bringing up more more and. I think it's important because there's a lot of value there. That's not immediately evident if you're simply looking at the income statement the consolidated income statement for Berkshire Hathaway Okay so with all of that said talk to us about your intrinsic value for Berkshire hathaway.
"berkshire" Discussed on We Study Billionaires - The Investors Podcast
"The Florida's you mentioned before stands one hundred twenty nine billion dollars. How do you see Burke Chef perform when it comes to macchia and profitability in the next day Kate specifically for the Insurance Division? I do recognize that. They are very disciplined in their underwriting. And the data point that I use to back that up as that. They've underwritten profitably in sixteen of the last seventeen years. That's a pretty good track record. If you know the insurance industry I found it very interesting that it seems like Geico's been the little slow to adopt telematics which things like snapshot that progressive has which is basically trying to figure out like. How much risk do you actually take while you're driving? Are you speeding or are you accelerating or slamming on your brakes all the time which is surprising to me given? Geico's history Of targeting originally government employees. That's the GE part of GE ICO so they were looking for operations that had lower risk profiles and one way of ascertaining that would be to keep track of how people actually drive and then base their insurance rates on this telematics idea but in the plus side of the category for them is that they've always had such a bulletproof balance sheet that they've been able to underwrite that no one else would really be able to take on. They've always operated at like one less deal than they could've been doing all along or one less big insurance underwriting thing and other companies even insurance industry I've seen their operating much closer to the full deals that they could do or even sometimes taking on leverage to do one more deal than they could've done and then they're always kind of digesting that deal so what it allows Berkshire to do is to use a lot of that float and invested into equities which earned quite a bit more than what most people were earning in their floats all the other insurance companies because they've stayed so far away from the edge of being bold deal maximize irs and full underwriting capabilities so they're conservative. Nature in a paradoxical way has allowed them to actually take more risk with their float. Better security portfolio. I've noticed the thing too about underwriting with prophet sixteen seventeen years and buffet has been very upfront by saying that he does not expect that to continue happening and you can put a lot of different things into not comment. Obviously wanted us that. Buffet always likes to play. Whatever he's saying. I mean giving the low interest red level. You would expect for this to continue at least for quite some time. The reason why I'm saying that as given the low interest rate you supposed to underwrite with the Prophet because the risk return you can get elsewhere. A lot of that goes into equity due to different regulations on all that can be put into equities. There was this matching principle so depending on the length of the claim You have to buy even long bonds which might seem a bit weird. These states interest rate. But that's just the way it is. It's not something we can do too much about. I'm sure buffet would if he could. But unfortunately that's not the case but the other thing that I found really interesting about how buffet has been addressing. The insurance business is also that concern shareholder Hussein with global warming with everything. That's been going on. What can we expect in terms of claims to Berkshire and he says you know most of these things by definition of renewed so like he can set new premiums and what he's saying is as much as it might seem bad one year. A lot of things happening from an insurance perspective. He's actually a good thing. Because the premiums would just go up and the mole uncertainty though are the better ensure because so many companies have to have insurance now Jig. Let's talk about the growing cast pile. It has been heavily debated for years among the shareholders off burks Halloway and today cast and chiltern investments are one hundred twenty eight billion dollars whenever I say. Today don't mean today much nine after the stock market has been tumbling for weeks. Now I mean that's the latest filing that have cast pile similar to what it was in Q. Three Twenty nineteen so as far as we know it's not growing but it stagnated at very high level. Well you know. I woke up this morning. And the market was down five percent plus and we had circuit breakers going so on days like today. You kind of have to love that cash pile right. I mean it's the optionality on it is growing with every tick down. I love the anti fragility of that cash pile when you combine that with Warren Buffett's cap allocation skills. He's proven that he can put up. Great numbers especially when the opportunities come along. I should say the only thing that I don't like about it is that it makes me a little bit sad that it's possible that he could be waiting for this one last chance to do some big deals that. Sorta cement his legacy. I've seen this before where grandparents are holding on to see that oldest kid graduate from college or something and then once it happens then they kind of let go a little bit and it'd be sad to think that longer that we can delay a crash and him putting money to work. Maybe the more time we get with him. I would be a little bit sad if he was able to bag that last elephant and now he's like I've done everything I need to do in this lifetime and I'm ready to move on but people typically do is look at decisive his portfolio and the thing here the year end it was around two hundred and forty odd billion dollars and then the look at the cast position and say wow he is a lot in cash that's not how buffet looks at it. He said actually just two weeks ago. I'm approximately twin percent cash right now and I'm that because I'm including the three hundred plus billion dollars in upbringing businesses plus we have multiple secure. It is and then we have cash if you do. The numbers is a different way of looking at it. He's looking had eight. Percent Equity is twenty percent cash. Who knows perhaps with everything that's been happening? He's not so much in passing anymore and the real ties into my next Christian. Warren Buffett kicked his stock buyback procam into high gear. Here lately spending two point two billion dollars on share purchase in the last three months of two thousand nineteen. And that's the most ever. He's done in a single quarter now. This is not significant. Pets the my cup of more than five hundred billion dollars and a lot of investors. See this estimate tunes. It's loading up on shares. It should also be noted here that the trading volume berkshire-hathaway is exceptionally low. So in that sense of buybacks yeahs. Buffet is restricted differently than other. Ceo's if he wants to repurchase a high numbers yes because he's so easily moves surprise he's been talking about how he look within the at the Osa who could buy back three four five percent without moving price but because of the volume of Berkshire hathaway she asked that is just Solo. He's been talking about or at least he's been hinting. He doesn't talk too much about it but he's been hinting of. Just one percent can actually move the needle in terms of influencing the price. But as much as we'll talk about later. What do you read into the stock buyback here? Siphon the obvious fact that buffet at times have found the shares modestly undervalued as. He puts his in his letter a lot of people. I talked to like to think that this buyback program puts a floor under the Stock. And he's talked before about in the one point two to one point three times book value ranges aware. Berkshire will kind of quote unquote defend the Stock Price. But not sure if I think that that's true or not. I think Mr Market can do a lot of crazy. Things in that can still apply to Berkshire. They'd spent five billion dollars over the last year to buy back one percent of the company. Roughly so that's in like two hundred dollars. A share for the B shares on the other side is selling. That's something that I always like to ask myself. And when it comes to Berkshire shares most of them are locked up in families who own the company. It's not the typical company that's owned by institutions or even like index funds. It's very under represented in indexes. Because of that so. I don't think that you may be get as much panic. Selling either there so maybe it's unlikely to go on crazy sale as much as other companies. I think I personally think that he would be better off looking for that next deal than buying out partners within. Berkshire itself and I don't think that there's a lot of willing sellers that will part with their shares at the prices. That are really mouth watering from a buyback perspective. It's just not the dynamics that I see in the company ownership structure. I think you bring up a good point because if you look at the ownership manual what he wants to do the least is to repurchase yash he wants to buy wonderful businesses and even before that he wants to build a widen the mortar round the assistant businesses. You wants to buy gas and other companies before he wants to buy out his own partners as he puts it is interesting especially at these prices ride now at the time of courting bricks hell awaits trading at one hundred ninety five and it would be interesting to see how much he loads up on his own. Yes in Q. Four if you look at the numbers the average spying price just for that quarter was two hundred fifteen so it might be well he would be buying back then but keep in mind that s the price of Berkshire hathaway's now trading much more appealing prices. So as more or less all the stocks on the planet you bring up a good point good. Cap Allocation is thinking of your shareholders as your business partners. And if you're buying back from them at breezy low prices you're benefiting one group of your shareholders at the expense of another and you're neglecting your duty as a captain of industry and as an allocated capital and a steward of capitalism by taking advantage of one party over another. I think you almost have a moral duty to try to keep your stock price. Trading close to the intrinsic value so that If some partner of Yours Aka shareholder needs liquidity for something. Perhaps they have to pay for a surgery. Or there's a charitable thing that there's really important to them that they need the liquidity. You should do what you can to help them. Get the liquidity that they need to run their lives. I think that there's a lot of good that can be done. The no one really talks about in capitalism by a CEO who keeps one shareholder group from taking advantage of the other too much. So that's really interesting. So buffet has mentioned in his letter to shareholders that ninety eight percent of his shareholders going into the year are the same shareholders. Going out at the end of the year and I think it's kind of an interesting metric because it shows you how strong his share by can be if he decided to use his significant cash position to conduct the buybacks. So something else I want to ask you about. Jake is your opinions on Warren. And Charlie's age There are many people that will argue that they're the true competitive advantage or at least significant portion of of the Companies Competitive Advantage. But as we all know Warren is going to be ninety. Charlie's ninety five ninety six years old. So what are your thoughts about the company with them eventually? Going TO BE REPLACED. Yeah I mean you really kind of have to get comfortable with answering. The question is Berkshire a man or is Berkshire a culture or is Berkshire and ethos or even maybe like an operating system for a business super.
"berkshire" Discussed on News Radio 810 WGY
"On Monday from the Berkshire Medical Center in Pittsfield Harry Chandler who has a black belt in judo over power to deputy as he was being released from the hospital and is said to be still on the run Berkshire county sheriff Thomas Boller says Thor he's been talking to family and friends hoping that's what we're dealing with the family we've got the word out to many of his associates to hopefully turn himself in so we can have a peaceful resolution at the time of his escape Chandler was said to be wearing only an orange pair of pants he's described as having a violent past with eight open cases in Berkshire county the search centered around Pittsfield and Dalton WGY morning news time is five thirty three Twitter debuts new rules to curb hate speech targeting religious groups boxes Kristen good one Twitter updating its rules against hateful conduct to include a ban on de humanizing language aimed at religious groups the company already prohibits direct threats on the basis of race ethnicity religious affiliation and other characteristics going forward tweets referring to a specific religion using words like rats viruses or filthy animals will be forbidden on the platform Twitter's CD team saying in a blog post our primary focus is on addressing the risks of offline harm and research shows that dehumanizing language increases that risk krystin Goodwin fox news let the same time a New York politician is suing democratic congresswoman Alexandria Kazuyo Cortez for blocking him from Twitter former democratic assemblyman Dov Hikind says Kazuyo Cortez blocked in because his critics of her policies have been to stinging will be raining confetti in New York City today in honor of the U. S. women's national soccer team as they did four years ago the World Cup champions will travel through the canyon of heroes along Broadway U. S. defeated the Netherlands tutor nothing on Sunday to win its fourth overall World Cup championship the American League defeated the National League for three ninety eighth Major League Baseball all star game in Cleveland Joey Gallo homered for the American League which build a four one lead and hung on for its seven straight all star victory Indians pitcher Shane beaver struck out the side the fifth was named the game's Most Valuable Player of the win went to the Yankees Masahiro Tanaka WG one morning news time coming up on five thirty five our next update at six summary jeopardy now chucking Callie on newsradio eight ten one of three one W. G. wine cattle regions breaking news traffic and weather station.
"berkshire" Discussed on 760 KFMB Radio
"Chase is going to help you. Good morning. Yeah. Favorite? Berkshire. Berkshire. You can look at. Berkshire. Be I suppose. This always does to me. I put the wrong thing. And I've I've messed up my faith refresh. Refresh it. Yeah. But it's symbols and stuff. But I tell you. I don't know if you've JJ pulled up, but I gotta pulled up Europe about one thing. I don't like about it is that you've got well-worn buffets all bitten don't hostile phrase it, but who's going to replace him. That's kind of done there. But I don't think it's the same thing going forward. And I and I like style I do like to obviously we follow it. But I don't like buying the Berkshire Hathaway the big reason is I caught the Warren Buffett affect. I mean, what happens when Warren Buffett leaves? There's so many people that have just become kind of chanted by Warren Buffett and said, oh my gosh. I love Berkshire Hathaway Warren Buffett end, it is a great company. But you know, I don't think there's any other company in the market that has more of a CEO effect than berkshire-hathaway. Yeah. That's a big concern, especially given his age. And the other thing is it is pretty much like a conglomerate. So there's all these different businesses. It is kind of a complicated structured understand. Yeah. So I do you have. Yeah. I have the numbers going through those numbers in the current price. Earnings multiples about fourteen point nine five side of the industry to eleven but it looks still pretty good. It's not too expensive their car. Prices sales comes to well industry at about one point to curb is tender book is one point nine versus an entry average at one point six and current price. The castle comes in eleven point five versus an industry average of nine point two, and this is based off of property and casualty insurance actually is the industry that the compared.
"berkshire" Discussed on BiggerPockets
"I'm a Berkshire Hathaway stockholder, and they are a member of the Berkshire Hathaway families. So I get that discount. We'll so what are some of the biggest contracts that you think that like your normal persons? You're listening to the show hem reviewed your finances in couple of months, what are some of these ones that you probably think standout as a checklist to kind of go after cell phone, cable and internet insurance. I think people know they're fixed costs each year. You can negotiate rent negotiate any of these things it doesn't hurt to ask. And you should just give it a shot when the worst that they can say, no, they're not gonna shoot you think about rent most, people don't even consider the fact that they're gonna go she rent, and if you're renting from private individual, and you wanna say, and maybe people do know because this is. The bigger pockets money podcast. Like, they don't turn over is a big pain. And so if someone says, oh, can I get a break on the rent if I sign a two year lease three year lease maybe three or is a little too long. But like, maybe they can knock a little off the red. You can say, oh, I can pay this way or that way. Or sooner faster? You can always they're different levers that if you have a little bit of creativity. You can try to find an it never hurts to ask. Is there anything I could do to make the she related with the insurance agent, which I didn't even think about. Yeah. Love it Switzer next. What's your next tip after that? So what had happened was? I heard all these things about like the lot factor in Brown. Bagging your lunch, and it sounded those are all great ways to save money. But they don't get the fact like it doesn't make your life too much easier. And so the the thought that I had and this is what actually did was I call it.
"berkshire" Discussed on BiggerPockets Money Podcast
"I'm a Berkshire Hathaway stockholder, and they are a member of the Berkshire Hathaway families. So I get that discount. We'll so what are some of the biggest contracts that you think that like your normal persons? You're listening to the show hem reviewed your finances in couple of months, what are some of these ones that you probably think standout as a checklist to kind of go after cell phone, cable and internet insurance. I think people know they're fixed costs each year. You can negotiate rent negotiate any of these things it doesn't hurt to ask. And you should just give it a shot when the worst that they can say, no, they're not gonna shoot you think about rent most, people don't even consider the fact that they're gonna go she rent, and if you're renting from private individual, and you wanna say, and maybe people do know because this is. The bigger pockets money podcast. Like, they don't turnover is a big pain. And so if someone says, oh, can I get a break on the rent if I sign a two year lease three year lease maybe three years is a little too long. But like, maybe they can knock a little off the red. You can say, oh, I can pay this way or that way. Or sooner faster? You can always they're different levers that if you have a little bit of creativity. You can try to find an it never hurts to ask. Is there anything I could do to make the she related with the insurance agent, which I didn't even think about. Yeah. Love it Switzer next. What's your next tip after that? So what had happened was? I heard all these things about like the lot factor in Brown. Bagging your lunch, and it sounded those are all great ways to save money. But they don't get the fact like it doesn't make your life too much easier. And so the thought that I had and this is what actually did was I call it.
"berkshire" Discussed on Stansberry Investor Hour
"But berkshire the railroad needs to have a lot of debt in order to leverage up its operating margins and producer return equity that's why putting those businesses together doesn't make sense so i believe the berkshire will eventually be split you're gonna have an industrial berkshire that owns things like the railroad and the other the the metal the utilities and they own a a metal fabrication company and potentially something like looks like they're gonna end up buying chinese electric car maker eventually be d y or b y de anyways that those may factoring and utilities and railroads those are comey's that you'd wanna have a high amount of debt attached to in that pay regular dividend that's those that's the proper structure for those kinds of companies the insurance company you don't wanna have to pay a dividend and you want it to be a growth business which was what berkshire was between say nineteen seventy five and nineteen ninety five and those berkshires glory days so you could split them to split them and let the people who want a safe dividend stock on the berkshire industrial businesses and you can let people like me who want to berkshire gross doc own the insurance companies that's gonna be for mailbag if you've got a question please write to us at feedback at investor our dot com if we use your question we've got this phone exchange in place where we send you stands berry research goodies loves her heinous please don't ignore us and let me know all the little things that i do wrong though head fire away as for loves constructive criticism.
"berkshire" Discussed on 760 KFMB Radio
"Yeah and that's part of that me glad you bring that up because there's five hundred has a lot of high flyers in it like net flicks and for some reason the video these these high fires at a way overpriced which warren buffett would never by he's more of a long term investor and the berkshire hathaway bshares is his portfolio one tenth the size of the berkshire hathaway asia's but a little apple down i guess not a little you actually quite a bit of it i mean he jumped in and bought a lot of apple i think it's about i wanna say apple so big i think it's still about five percent of company but he bought gosh just bob was one hundred hundred billion he bought her seventy five billion plus he had some already so he's he's taking a big position into the numbers here on berkshire hathaway beat to see if it makes sense to get into this and again i love his management style but sometimes even that can become overprice as far as what you're paying for the stock of berkshire hathaway racial very expensive forty two point six versus seventeen prices sales two point one versus one point three price to book value two point one one point seven and price casual twentythree versus eleven so very expensive what you're paying for this stock here we do see sales are up point one percent year over year the initially up seven point seven earnings per share they fell by forty eight point eight the initial down seven point three some kinda surprising that number the balance sheet we see told that area of twenty eight point five versus thirty two that's okay return on equity is three point six eight point seven net profit margin is five versus seven point six so that's good we see will turn over i'm sorry that's not good we see we'll try seventeen point five or two point nine and inventory turnover levin point eight versus not material i excited about these and i've never bought a again my like warren buffett's management style is different what he holds.
"berkshire" Discussed on The Money Guy Show
"All love to be a part of that he gets the bring into the berkshire hathaway families or so is it's hard to reproduce what he's doing so he saying that the public needs to be aware of what prophet is from operations that's going to be harder now that they have to also include this 100 in seventy billion dollars in the valuation it has on january and how this december who different on december or however their year end is that is going to create some fluctuations in his concern and i'm worried about this for all of our our viewers than anybody else who's an investor this could create some distortions and the fact that the guys you know had is when a company releases earnings it's at the at the close of business the the stock bell rings at four pm m right right after its the bell rings they start earnings get released and pundits immediately go out there and they try to figure out is a good news bad news and they give an opinion really quick and there's a whole race to be the first one to give the opinion is is be careful because some of those off the cuff predictions or reads of the earnings are probably going to be wrong because they're going to be either inflated or they're going to be depressed because of what's going on with with the changing market value of stocks they might uh and yeah i love the way that he that he wrap this up this little quote quotation that we put out at says consequently media reports sometimes highlight figures that unnecessarily frighten or encourage many readers our viewers media the you're hearing some stuff that might cause you to feel or behave one way when realistically hasn't changed under ma underlying fundamentals of business and so we think about okay well what's warned saying to us as the average investor unita listen for those things that come out that might frighten everyone else because that's the opportunity that's when you should be that's when you should seize the opportunity and then the things that encourage people are maybe they get a little to excite a little overheated that's when you and he did take a step back and think are things really as good.
"berkshire" Discussed on SuperTalk WTN 99.7
"Got a lot of friends who own guns here's what he said i don't wanna put words of mca i think what the kids are doing their talking summit those you know the camera hogging the rest of those folks down there i think where those kids are doing there is very admirable but i don't think that berkshire should say we're not going to do business with people that whole guns this was an interview with cnbc yesterday buffett's berkshire hathaway doesn't own a gun any gunmakers but it wouldn't stop burke shares money managers from by now i say merck shire but but the buffet always borne out in its his company he pronounce it berkshire berkshire hathaway berkshire okay so berkshire says i don't believe in imposing my views on three hundred seventy thousand employees at a million shareholders i'm not there nehmi on that he was asked about black rock ceo larry finks message to corporate leaders to make positive contributions to society net look this summit a leading question well don't you think you should follow larry finks lead you know he's the ceo of black rock and make positive contributions signing what is what is negative about the nra it's a positive contributions sight it's a constitution your nannies so they're act like if you're invested in gun companies that it's evil it's not a positive contribution that is the positive contribution the fact that we have gone is the fact that we're able to defend ourselves from the crazy people in the evil people anyway he says i don't believe in imposing my views on these people he said the corporation should be wary of taking controversial political positions i think you should be pretty careful before company takes a big political opinion investment funds and corporate america have faced intense pressure to cut ties with manufacturers in progun group since the florida shooting black rock blackstone state street and bank of america have all said they are examining their relationship with gunmakers it done sponsored by bank bank of america is the worst bank ever i'm just going to go out and say it just the worst bang in my opinion my humble opinion bank of america is responsible for a lot of.
"berkshire" Discussed on KMOX News Radio 1120
"You just about everything you wanna know personal and professional about warren buffett but in any case he's built himself up to be the most successful investor of all time chairman of a company called berkshire hathaway he and his partner charlie munger are the most widely read and quoted invest news that you'll ever see or hear and for good reason they come up with some really good quotes and so this is the week warren buffett through despite being this one of the smartest guys ever and being so widely quoted and so widely studied and in some cases so misunderstood although he says he has a very simple philosophy has never written a book he's being interviewed he's you know he's very gracious with his time in his wisdom he's he's gone into business schools i know he's been into mizzou at least once and taught and our there with the students spent some time ate a lunch with them and so on but he's a ease off he's a above goldmine of information because this guy's done it he knows what works and what doesn't work in a year in february he writes this letter in sends it out two views shareholders at berkshire hathaway nad is required reading for anybody who does what i do which is manage money professionally for individuals and for institutions and so on and on these letters have come out for years they're you know they're available to the public so before you do anything else if you wanna learn how to pick stocks you want to understand warren buffett as best you can in the best way to understand him is to read what he writes and he doesn't again doesn't write a lot but he um he is out with this year's annual report to shareholders which you can go online i think it's berkshire hathaway dot com.
"berkshire" Discussed on The Meb Faber Show
"On appointment so you gotta be careful with your screens in a one that there's some consistency listeners or to that you can actually trade them and it be something that's representative of an actual possible real world outcome one more question while we're on berkshire and maybe war thing about some other models in a lotta people i'm sure listening would say hey instead of by buffet screen why when i just by berkshire stock is that something that you've ever looked at comparing as it similar is a different you know because he's got a lotta private operations of investments that aren't public with your thoughts there i have to thought one i think people shithole law portion of berkshire but not the same thing after five burke here they're very very limited in a number of endebtment they can neck virtually you know maybe there's three hundred or 500 companies to take it possibly by or invest and it would eventually move the needle on such a company holding that big so because there's so many other companies that are available that would not be of interest to the real life berkshire hathaway people can invest and things that even brochure can't best in right now but following the original strategy that made warren buffett successful yeah i mean i think that echoes lot of what both of his ex who said you know where he said look both at its forty verses age eighty you know when he had a lot less capital deploy could do a lot more things in he says it actually quite a bit where if he was managing a hundred million you could be a lot more opportunistic and that's simply mathematical in our reasoning because he's severely limited with his breath like you mentioned the only as a couple of hundred stocks in his universe whereas you or i could probably operate in a world of of 2000 so it's reduced by say 75 percent that's interesting so by the way listeners on as great book called guru investor i think he came out by the way like literally near did it come out in two thousand nine yet.