Aug 302018
 

Warren Buffett was interviewed on CNBC on August 30, 2018, his 88th birthday.

The 5 highlights were:

(1) Stocks are currently more attractive than fixed income or real estate.   Berkshire Hathaway is buying stocks every day including today.

(2) Buffett recently purchased additional shares of Apple.  The value of an iPhone to the user far exceeds its cost of $1,000.

(3) Berkshire has recently bought back some of its shares since they were priced below their intrinsic value.  (Note: This implies that Berkshire bought back its shares at about 1.4 times book value ($310,000).  Therefore, Buffett and Munger estimate Berkshire’s intrinsic value to be at least 1.5 times book value ($330,000 —“margin of safety”).  Berkshire closed at $315,800 on August 31.)

(4) Berkshire owns about 9 1/2% of each of the four major airlines and wishes to keep its stakes below 10% to avoid additional regulations.  Otherwise, they would like to own 20% of each airline.

(5) Packaged food companies are not as attractive as they used to be.  But they still earn high returns on tangible assets.

 

 Posted by at 9:38 pm
Aug 302018
 

Today is Warren Buffett’s 88th birthday.  Happy Birthday, Mr. Buffett!

This blog was launched 8 years ago today on the occasion of Warren Buffett’s 80th birthday.  I hope it has been helpful to all who have visited this site.

(Note: Warren Buffett will be interviewed on CNBC from 11:00 – 11:15 a.m. EST today.)

 

 Posted by at 7:22 am
Aug 142018
 

In an SEC 13F filing after the market closed today, Berkshire Hathaway revealed major changes to its portfolio as of June 30, 2018.

The largest additions to its current holdings in its portfolio were:

(1) Apple (AAPL):  + $2.5 billion (14 million shares or 5.2%)

(2) Delta Airlines (DAL) : + $500 million (10 million shares or 18.8%)

(3) Goldman Sachs (GS): + $500 million (2.3 million shares or 21%)

(4) U.S. Bancorp (USB): + $500 million (10 million shares or 10.8%)

(5) Southwest Airlines (LUV): + $465 million (9.3 million shares or 18.7%)

 

The largest subtractions from current holdings in its portfolio were:

(1) Phillips 66 (PSX): – $1.3 billion (11.5 million shares or 24%)

(2) Charter Communications (CHTR): – $200 million (700,000 shares or 8.7%)

 

Additions of less than $100 million were made in Bank of New York (BK), General Motors (GM), Liberty Global (LBTYA), Teva Pharmaceutical (TEVA), and Axalta Coating Systems (AXTA)

Reductions of less than $100 million were made in American Airlines (AAL), United Continental Holdings (UAL), and Wells Fargo (WFC) to maintain Berkshire’s stakes at less than 10% as these companies have bought back their shares.

There were no new investments added to its portfolio during the second quarter.  Verisk Analytics (VRSK) ($30 million) was eliminated.

 

 

 Posted by at 5:32 pm
Aug 142018
 

Warren Buffett, who will observe his 88th birthday on August 30, will no longer meet with college students in Omaha.

On behalf of the University of Maryland, I wish to express my gratitude for having the opportunity to accompany our undergraduate and graduate students on trips to Omaha for private meetings with Warren Buffett on May 23, 2005, March 11, 2011, November 15, 2013, and November 18, 2016.  My notes from these meetings are available on my web page.

 

 

 

 Posted by at 7:49 am
Aug 102018
 

The six largest companies by market capitalization represent 20% of the total market capitalization of the S&P 500 of $23 trillion.  The six largest are: Apple ($1.005 Trillion), Amazon ($926 Billion), Alphabet ($880 Billion), Microsoft ($843 Billion), Facebook ($529 Billion), and Berkshire Hathaway ($518 Billion).

Apple ($208.15) and Berkshire Hathaway Class B ($209.10) closed at almost the same price yesterday. Berkshire is Apple’s largest shareholder with a $50 billion stake equal to 5% of Apple.

 Posted by at 8:34 am