Berkshire’s Oncor Deal Feeds Buffett’s Energy Appetites

Berkshire Hathaway arrived at a deal to purchase one of the country’s largest power-transmission companies, making electricity one of the conglomerate’s biggest businesses. This according to a recent article in The Wall Street Journal. The bankrupt Energy Futures Holding Corp. will be acquired by Berkshire Hathaway in a deal valued at $18 billion ($9 billion of which will be cash), the article says, and will include the Texas-based company Oncor. The acquisition will further enhance Buffett’s energy holdings and ambitions, the article says, adding that Berkshire Hathaway Energy (BHE) contributed about 9.5% of Berkshire’s total earnings of $24.07 billion last […]

Warren Buffett Has Been Busy

The Oracle of Omaha has had a full dance card lately, as reported by CNBC and The Wall Street Journal: A CNBC article reports that, as of June 22nd, Buffett’s bets on four major airlines came in for a major landing, gaining $174 million from the market’s close the day before (according to SEC filings). The holdings are in American Airlines, Delta, United and Southwest Airlines. According to The Wall Street Journal, Berkshire Hathaway agreed to lend 2.4 billion Canadian dollars ($1.8 billion) to struggling Canadian mortgage banking company Home Capital Group—which has recently suffered an exodus of investors, the […]

Learning from Buffett and IBM

Warren Buffett’s announcement prior to this year’s Berkshire Hathaway annual meeting to sell a third of the firm’s IBM shares spurred a host of headlines, writes Validea CEO John Reese in a recent article for Nasdaq. In the article, Reese explains that while Buffett is known for his penchant to buy and hold, the article explains how the firm’s partial sale of IBM holdings is aligned with his philosophy around and focus on competitive advantage. Reese quotes Buffett from a recent CNBC interview: “IBM is a big strong company, but they’ve got big strong competitors too.” Reese adds, “When circumstances […]

Highlights from Berkshire Hathaway’s 2016 Letter to Shareholders

On Saturday, February 25th, Berkshire Hathaway released its much-anticipated 2016 letter to shareholders in which Warren Buffett presents his company’s results for the year and shares his inimitable insights and wisdom. Here are some highlights (Part I was posted yesterday): “Starting from scratch, America has amassed wealth totaling $90 trillion.” Meg McConnell of the New York Fed: “We spend a lot of time looking for systematic risk; in truth, however, it tends to find us.” Berkshire has $86 billion in cash on hand—perhaps the most ever. “We have made no commitment that Berkshire will hold any of its marketable securities […]

Highlights from Berkshire Hathaway’s 2016 Letter to Shareholders

On Saturday, February 25th, Berkshire Hathaway released its much-anticipated 2016 letter to shareholders in which Warren Buffett presents his company’s results for the year and shares his inimitable insights and wisdom. Here are some highlights: Berkshire has undergone a “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” The company’ present course is to: Continue to build insurance operation; Acquire large and diversified non-insurance firms Make deals largely with cash In discussing the issues surrounding issuance of additional shares, Buffett is forthright in admitting mistakes. “I made […]