35 Burst results for "Berkshire hathaway"
Warren Buffett Has Made $100 Billion on His Investment in Apple
"Of the world's most successful investors. Warren Buffett, known to resist the temptations of invested in the next big thing, is disclosing that his Berkshire Hathaway has made nearly $100 billion on Apple. It's now one of the 90 year old investors. Best investments of all time. Warren Buffet disclosed the 12 figure game this past weekend. It is and he will lead her to shareholders of his Berkshire Hathaway that conglomerate Buffett has long run from his office in Omaha, Nebraska. The company has a large investment portfolio that includes dozens of well known businesses from Geico insurance. The fast food chain, dairy queen Toe underwear maker from the gloom. Buffet, who had long avoided investing in tech stocks first bought 10 million shares of Apple back in 2016. He has since added to that steak, which was worth about $134 billion at the end of last year. Matt
Apple bounces back after a rough last week, 270 stores reopen
"Apple bouncing back after a rough week last week. This comes after Berkshire Hathaway Chairman Warren Buffett saying in his annual letter to investors published this weekend that His investment firm owns nearly 5.5% of Apple, mainly because Apple's been repurchasing their own stock, So his percentage has gone up to also apple announcing that all of their 270 U. S. Retail stores are open for business. Some of them are appointment only, but they are all Open for
Warren Buffett has made $100 billion on his investment in Apple
"Most successful investors. Warren Buffett, known to resist the Temptations of invested in the next big thing, is disclosing that his Berkshire Hathaway has made daily $100 billion on Apple. Now it's one of the 90 year old investors. Best investments of all time. Warren Buffet disclosed the 12 figure game this past weekend. It is an evil letter to shareholders of his Berkshire Hathaway that conglomerate Buffett has long run from his office in Omaha, Nebraska. The company has a large investment portfolio that includes dozens of well known businesses from Geico insurance, Too fast food chain dairy queen Toe underwear maker from the gloom. Buffet, who had long avoided investing in tech stocks first bought 10 million shares of Apple back in 2016. He has since added to that steak, which was worth about $134 billion at the end of last year.
Buffett is buying back more Berkshire stock this year after record $25 billion repurchase in 2020
"Berkshire Hathaway said today. It brought back a record $24.7 billion worth of its own stock last year and said there's more to come The conglomerate said it repurchased a total of $9 billion in the fourth quarter.
What Will Amazon Do Next in 2021?
"The other day announced a new ceo. And so we're is amazon. Going in two thousand twenty one and how can small business owners actually participate hit. Help is jason boys. A season entrepreneur and nationally rise x. nationally recognized expert on amazon. He's considered the world's leading expert in dot com third party sellers. He's the founder and ceo of avenue seven media llc a seller group that harnesses the power of amazon for direct to consumer product brands. He's also the co author of the amazon jungle. The truth about amazon and the sellers guide to thriving on the world's most perilous e commerce marketplace jason. Welcome to the show. Thank you bury. Congratulations to you. Six hundred and twenty six show twelve years you know. He started with just one person. So tell me how you've been doing during this pandemic. Our business has been booming Amazon scott galloway came out and wrote a book about The pandemic amazon a company that was built for something like a worldwide pandemic and they've benefited greatly and frankly so's my business. Because so many small businesses that had regional brick and mortar retail store outlets that. Just shut down on him and folks were were kind of on the fence prior to the pandemic called and said jason get amazon tomorrow. Can you help me so our business has been. I mean we keep up very hits been it's been You know a bittersweet story. It's good news that our businesses doing great as results pandemic. But it's been a really difficult time for everyone. Any recession is always winners. And there's losers. But i tell you one thing jason happen. This year that i never thought could happen in relation to amazon. I couldn't believe they couldn't deliver in two days. Came buried i. I made some predictions in early october. That fda and amazon delivery network was going to break. It ended up not breaking but they broke the post office. They bury them with so met much volume that they literally couldn't couldn't handle it and you're absolutely right. There were very few packages that were delivered to people's doors within two day window within that one day window even still though what they did. This holiday in terms of ramping up delivery final mile warehousing added fifty percent of square footage and like four months. I mean it's historic area. It's pretty incredible what they did so just recently announced. Jeff bezos is going to step down. Ceo and there was a joke on facebook. That says well i guess he's fully invested 401k. Now that's why he's stepping down. But one predictions you have for twenty twenty one with amazon given a new ceo and the hopefully the winding down of the pandemic. Yeah well you know. I hope jeff vases is going to be okay with the pay reduction. Moving from fulltime. Ceo to just executive chairman. You think you'll be okay hope but yeah you look i. I don't think that amazon is going to miss a beat. You know the minute. The announcement came out which by the way was interesting enough announced around the same time as their blow out. Q four earnings call Historic in its own right Potentially to deflect which amazon's pr department is really good at About how great they have benefited in his really tough time for our country But look amazon's not going to miss a beat andy jazzy. Jeff clone bleeds amazon. Blew has been basically attached to jeff bezos hip for more than twenty years. He's an incredibly talented competency. Oh who took. Aws from zero to fifty percent market share in the cloud. Space according to gartner so He's incredibly talented. He will help Execute on jeff bezos division. Basil's we'll take a back seat behind. The curtain is gonna shove jesse in front of congress and answer. All those difficult antitrust questions and basis is going to work on what he loves doing which is invention and future technology. Whatever amazon looks like five ten years from now will have been developed from. Basil's mind so he's not going anywhere. He's just removing himself from some of the shall we say more uncomfortable task. It's going to land on jesse's lap in the next You know one to ten years. As i trust drums or are beating louder and louder. So let's talk about some of the trends that you've been discussing Tell us about how you think. Amazon is getting into healthcare. They are already in healthcare. I mean they're providing primary care for you know scores of their own employees tens of thousands of their employees they They famously removed themselves from joint venture with jamie diamond and berkshire hathaway recently In the rumors from within inside amazon at the reason they did that is because they were holding back and the amazon pharmacy group which spun up recently. we're saying we can't move fast you know. We can't move fast because we're being held up by chasing in berkshire hathaway. So i saw that. A lot of a lot of people in the press came out berry and said oh. This means amazon can't figure out healthcare. It's too difficult. It's too challenging. I didn't see that at all. I just saw that you know amazon. Saw this as cutting weight so that they can really focus on what they do. And that's innovate
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.
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.
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.
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
"berkshire hathaway" 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 hathaway" 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 hathaway" 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 hathaway" 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 hathaway" 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 hathaway" 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 hathaway" 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 hathaway" Discussed on The Dan Le Batard Show with Stugotz
"Warren buffet is offering employee does something like this every year. He is offering employees of Berkshire Hathaway we've had worn on the show a couple of times. He's fantastic. I'll try to get them next week. He's offering them one million dollars a year for life if they can pick these Sweet Sixteen correctly. And so got me thinking, we should all try to get between now and Wednesday just some quick part time work at I'd lecture Hathaway's on this. Yes. That is. Well, we should all apply. Sweet sixteen. Yeah. Just this week. Six can only be one entry because I can turn out about fifty of those bad boys and get the Sweet Sixteen right? I'm reading straight off of Twitter from Forbes Warren buffet is offering his nearly four hundred thousand employees at Berkshire Hathaway companies a chance to win one million dollars a year for life. The catch you need to pick the correct Sweet Sixteen in the men's NCW basketball tournament Bill. So if I were to do this, I'm employee and I win right? Do I need to stay in -ployed by them. Or like, I just got a million dollars. I can retire. I am not certain. I haven't I'm just reading the headline having clicked on the article. One million life. I I would assume that you have an option to retire there. Right. I would assume that if you get the Sweet Sixteen right? You have the option to retire? I bet he could make your life, and like I can make you disappear. Someone actually did it. This is probably reckless but feel. Warren Buffett saying, I mean, if you wanted somebody disappear Warren Buffett can make someone disappeared we Warren Buffett who still lives in the same house who still eats like peanut butter and jelly sandwiches. Why do you have them eliminating people? I'm just saying. I mean, let's say yes, he can make you disappear too. And I would assume he's rooting for someone like in the sixties to win right sixty or seventy year old Martin for a win Bill. No. But I know, but if someone wins he doesn't want the up and comer twenty two year old just out of college. So when you think right? Can you put it on the poll can Warren Buffett make you disappear and also is Warren Buffett rooting for anyone to win both of those at lebatardshow on Twitter. You guys have I gave you five words here from Izzy family Cleveland Barkley Knicks marked for.
"berkshire hathaway" 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 hathaway" Discussed on The Jordan Harbinger Show
"Zero exactly it went i actually argue maybe it would have helped it because it's a pretty good story to tell at a cocktail party i'm always thinking about cocktail party story but yeah so like it certainly not taking it down like it's not like a year a year goes by and you're like i had a miserable year because i had a flat tire one day it doesn't make any difference but yet in the moment it feels like it's everything so the question is how can you kind of zoom out so that you're looking at things more like that that the long term trend of berkshire hathaway as opposed to what might be happening at eleven thirty on tuesday and what i argue is to do one of two things basically just when you're feeling that emotion and we can all feel that emotion right because it's physiologically very powerful you know your heart is racing your cheeks or flushing you can feel yourself getting really upset to to take a moment to really commit when you feel those feelings to take a moment to ask yourself one of two questions in whichever one feels the best to you what the first is well if this had happened a year ago how do i think i would feel about it today or you can say in a year how do i think i'll actually feel about this latte tire for me personally it works better to say well if it happened a year ago how do i think i would have felt but that's just for me personally i think for other people it just depends some people find it easier to say well do i think this will matter in a year and i think that once you do that allows you to kind of step out of that emotional brain right kind of turns your limbic system off which is the emotional part of your brain it allows it to shut down and.
"berkshire hathaway" 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 hathaway" Discussed on Bloomberg Radio New York
"Of trying luxury automakers are finally figuring out how to appeal to women by not trying too hard that's in our pursuit section but fast we tend to be meg business week editor in chief joe weber to hear about some of his favorite stories in the magazine and you'll let's start in the business section a story that really fascinated came at a couple of weeks ago but it's about a try sector of individuals wellknown individuals warren buffett jeff bezos and also jamie diamond talking about fixing the health steve trevor era biggest guys around and this the details are out this still remain kinda hazy how you know what's going to actually be the solution in healthcare how are they going to try and fix us and they're trying to find a ceos still who can spearhead this initiative between the three companies amazoncom berkshire hathaway and jp morgan so dan interesting and where we try to pick up the narrative is the reaction within that industry because the health care industry is like amazon's out the door this is a big deal now and that's where we picked up no what we were expecting from thouray into the house can we should meet the pontiff at the moment digest tackling this situation with individual companies scale but as you point out what does this mean ultimately fool the individual players hit is the pharmacy benefit manages the middlemen particularly carla and that is all of this is just like this massive cocktail of guess what is happening in healthcare why are you prices keep getting so much higher and consumers feel like they're getting the shortest strove all right and speculation is like there's an middlemen pharmacy benefit managers and that is where there seems to be a focus the this 'triumvirate could bring to bear yes 'cause the big tom i say it's not our problem we not miss pie thing the drawn by a lot of the money he gets creamed by the guys in the middle the insurance that benefit manages he point i feel like when it comes to check pricing it's all like oh my god.
"berkshire hathaway" Discussed on GeekWire - Geared Up
"Yeah i'm i'm trying and struggling to think of something one thing that springs to mind as lake trip planning at an i don't really see them getting into the expedia can of arena but then again if they did i wouldn't be surprised i would expect up yeah i can't think of anything that would be surprising i mean yes i think that they have an appetite for everything they're like they're ethos their brand is to try stuff even if it doesn't seem like it said all related to their core business so like by definition they can't really do anything that would shock you one thing that i think is really interesting about this announcement the healthcare venture is that they are going into a as a deep partnership with two other companies and that's not something we see amazon do very often some really curious what their strategy is there they like to be really independent a nimble i wonder why berkshire hathaway and jp morgan were attractive partners for them and why they decided to make this kind of a joint venture instead of one that they just go on often and canada conqueror by themselves while if they want to be an insurer than they need a certain number of people who are buying into it right so maybe it's just the the fact that these three huge companies have so many employees that that gives them a bigger base to experiment with this new model that's really true actual it's a good point and they have a a total of one point one million employees between the three companies across the world so not all of those around the us and this is just going to apply to to the us for now but it's true that there are a lot of employees jp morgan chase in berkshire hathaway also have a lot of cash at their disposal much like amazon to help can of fund this and as a curt mentioned earlier jp morgan chase is led by jimmy diamond berkshire hathaway's led by warren buffett two very important figures in the business world so sauso can elevates jeff basis to their can of echelon and shows them working together yeah i gotta say i mean i'm not nambisan unemploy obviously but i am with kurt on this and i feel usually you and i are the ones who are like i want amazon to touch of.
"berkshire hathaway" Discussed on Invested: The Rule #1 Podcast
"The second largest position is seventeen percent which is in berkshire hathaway ddot be and so berkshire bshares uh that's what alan meet him had also exactly third position is bank of america at thirteen percent uh and i'm pretty sure guy got into bank of america way back when buffet did at a buffet at an option at six bucks is that i mean that's always the question is when did this yet you click on these you can go on our website rule one in dozen dot com and you can click on any of these guys in upul come their portfolio than you can click on the stock at a tell you when they got it nice okay and then this is an interesting one for you i don't think we've ever talked about these kind of things but this is a general motors warrant uh dare now i mean i know what warrants are right i didn't know that you can publicly that they treat their ain't that not all of them but some of them are tradable whom then so guy got it general motors warrant oh was it from the bankruptcy was through the as part as bankruptcy they put out warrants the are meeting we're not bad trade yeah ramona reading about that it was a really good deal it was a really good deal was really smart to joe what a warrant as as a right to buy stock it's not actual stock and it's a right to buy at a certain price certain price at a certain amount of time these expire in two thousand nineteen.
"berkshire hathaway" Discussed on KTLK 1130 AM
"You want to have the potential to have the retirement you want full we have someone who can take his deeper into that that debt analysis especially when it comes to real estate and his name is great cooper greg works for berkshire hathaway services in indiana and greg is an expert in real estate investing greg it is great to have you here on the show with us one question that we get a lot from folks who are in or near retirement is they wanna know should they pay off their mortgage or should they continue to plough that money into the retirement investments depends and and here's what i want to quantify that is is being first of all we wanna make sure when you pay off your mortgage in some places there are property tax implications in terms of you the deductions you may have or what nazi you wanna make sure you understand those clearly in terms of paying off your mortgage this is just me i'm a fan of continuing to plough the money into your retirement account the house is going to go up and value if that's what it's going to do or go down whether you pay off the mortgage or not so if it's a good investment just in that sense leave it'd be let it go put the money in your retirement i'm always in favour of cash so let's talk about the flip side of that some people are just absolutely dialed in they absolutely want to get out of debt as quickly as possible they have all of these plans and you see them and what do you tell the people who just are absolutely set on trying to get out of debt yes it depends and yes you want to try to figure out where the best bang for your buck is going to be what advice what what suggestions do you have for those people who do want to erase the mortgage well i think that i'm probably going to air a little bit on the other side than perhaps the anybody here might.
"berkshire hathaway" Discussed on MAD MONEY W/ JIM CRAMER - Full Episode
"John in michigan john again my love the show longtime launcher now that peabody energy has converted all other dead end into stack i was wondering what your thoughts were on peabody energy and the coal industry could up to celebrate here i think the fossil fuel of setting up this very bad i think was going to go back to the low forty s maybe take out maybe take out 42 41 and you don't wanna be anything in energy until i tell you that it's all clear which is against of their baton club members let's go on florida police daniel hello jim kramer this is daniel from endear beach florida i want to thank you for writing two of my most favorite financial books get rich carefully inch they met for life great guy thank you thank you i have the position in berkshire hathaway be and i have been wanting to slowly and carefully as you adviser for the thing just keeps going up uh we've got just the minimal a tiny dipped today but it's still not enough to our if i bought more i'll be violating my basis can you give me in the by yes i want you to wait i think that the sell off has some to it i don't like where the fixes is i don't like action so to speak i know that a lot of people have gains let them sell it down to your level and i want to make that case for a lot of stocks here now i see things i like i don't i'm not a bear but let people sell berkshire hathaway and other stocks dance.
"berkshire hathaway" Discussed on Masters in Business
"He preferred i think to keep the stock and give the money so mossy investors were cashing out some of them took some brochures stock and not not a whole lot happened with berkshire for the next decade and uh i was unaware that he was turning it into his own mutual fund but in 1982 of us sitting around doing something or other with the hedge fund i that immonen princeton report partners and heard some news item about berkshire hathaway and warren buffett said focused on it and i realised right away what had happened in the intervening the fourteen fifteen years that buffeted turn this a sick textile company into his own private investment tool so had by it had i known that i had i been able to invest in berkshire hathaway and 1960 four to nineteen seventy i might have invested some were in the twelve fifty dollar range but but now but now the stock with nine hundred eighty two dollars so multi was ag it's already had a malt a huge multiple you don't want to buy it now i said yes i want to buy it now side ah began buying in an end how long did you hold onto berkshire hathaway added you still have to this day so i'm compelled to ask one hundred dollars invested in berkshire hathaway when you put that in in 82 young what would a hundred dollars be worth today wells easier for me to thinking hers of a thousand because that was okay soccer slightly less so it's worth roughly two hundred fifty thousand that's a pretty good retired you how does what does that average out compounded that mid20s something like that those zaddar two hundred fifty.