Berkshire News Briefs - 2/10/15

Warren Buffett: Know when to hold ’em (CNBC / Financial Times)

"No one who steps into his shoes will have Mr Buffett's authority or credibility," says Larry Cunningham, the law professor and author, who has published an annotated anthology of the letters. "To the extent that he can provide texts, rules, principles, it will all be very helpful. It will fortify the successor." Such fortification may be necessary in an age where hedge fund activists are gaining traction with their demands that companies spin off divisions, halt investment, add debt to the balance sheet and return cash to share-holders — actions which are anathema to Mr Buffett. Close followers of the company say talk of breaking up Berkshire will remain just that: talk. [...]

Warren Buffett’s first interview of the year (Fox Business Video)

This video is 40 minutes. Here's a shorter version, with some text highights and excerpts:

Here's What We Learned in Warren Buffett's Sit-Down With FBN's Liz Claman (Fox News)

Fox Business Network's Liz Claman sat down this afternoon for an exclusive live interview with Warren Buffett, as he marks 50 years since he started Berkshire Hathaway. Here's a summary of what we learned from the "Oracle of Omaha"

Buffett: Buying in Western Europe, eyeing Russia (CNBC)

Warren Buffett, Berkshire Hathaway's chief executive, said Wednesday his company will be buying a small business in Western Europe. "I'd love to buy big ones," he said. "I'd love to buy big ones." Buffett did not disclose the type of business Berkshire Hathaway is buying nor its exact location. He also added that while his company will be setting up shop in Western Europe in the near future, he is still monitoring the situation in Russia.

Warren Buffett faces pressure for more disclosure (Financial Times)

Free registration required, but FT is a worthwhile site to have an account on anyway.

Warren Buffett is under fire from investment analysts who cover his $370bn company, Berkshire Hathaway, over the quality of its financial disclosures. While Berkshire has grown to be the third-largest company on the US stock market, its quarterly filings reveal far less detail than companies of a similar size, according to the analysts, who all urged Mr Buffett to consider expanding disclosures, particularly about Berkshire’s large insurance businesses. Mr Buffett rejected the criticism, telling the Financial Times that Berkshire communicates “all the relevant factors for a long-term investment in the shares”.

Warren Buffett's media chief: Print newspapers have strong future if industry adapts (Irish Independent)

Journalists should prioritise their customers' desires rather than a particular platform, Terry Kroeger, president and chief executive of BH Media - a subsidiary of Warren Buffett's Berkshire Hathaway group - told a symposium on the future of local newspapers in Croke Park yesterday. Berkshire Hathaway has continued to expand its investment in newspapers despite continuing negativity about print journalism's future in the digital age. "The mistake that the consultants and prognosticators make is that they argue whether it's digital first or newspaper first. It's neither. The truth is the model that's most likely to work is customer first," Mr Kroeger said.

A company’s perspective on why wind energy matters (The Hill)

Good perspective on alternative energy written by a MidAmerican executive.

The largest economic development project in Iowa history isn’t by the real estate industry or even the ethanol industry. It’s by the wind industry. A Berkshire Hathaway company, MidAmerican Energy, is about halfway done with building up to $1.9 billion worth of wind farms in Iowa. We will be able to able to utilize wind resources in a manner that can represent the equivalent of about half the needs of our retail customers by 2016.

The S&P 500 Is Morphing Into the S&P 505 (Daily Finance)

I corrected this excerpt: it's Discovery Communications (DISCA/DISCK), not Discover Financial (DFS).

In the past, S&P has included only the class of shares that the general public could invest in. But last year, S&P decided to include both classes of shares for Google and [Discovery Communications]. [...] But it's not automatic that both classes of a company's stock will now be included in the index. In fact, 13 companies in the S&P 500 have multiple classes of stock, but only the five already named will have both included in the S&P 500. The biggest name that has two classes of stock but only one listed is Berkshire Hathaway, the giant conglomerate run by Warren Buffett. Silverblatt said Berkshire and the others do not meet liquidity and other criteria needed to include both classes of stock.

Warren Buffett adds to his lead in $1 million hedge-fund bet (Fortune)

Under the terms of the wager, Buffett is betting (with his own money, not Berkshire’s) on the stock market performance of an S&P 500 index fund while Protégé Partners, a New York money manager, is banking on five funds of hedge funds (the names of which have never been publicly disclosed) that Protégé carefully picked at the outset. Through the seven years, Vanguard’s 500 index fund, as represented by its Admiral shares, is up 63.5%. That’s the portfolio carrying Buffett’s colors. Protégé’s five hedge funds of funds are, on the average—the marker the bet uses—up an estimated 19.6%.

Warren Buffett’s Broker to Retire From Citigroup (WSJ MoneyBeat)

When Warren Buffett got a cell phone, the first call he made was to his stockbroker at Citigroup Inc. That broker, John Freund, still remembers the conversation. According to him, it was around the mid ’90s the famously low-tech Mr. Buffett called to say he wanted to try out his new phone. [...] That close relationship is the fruit of a decades-long partnership, where Mr. Freund has executed many of Mr. Buffett’s stock trades and been a confidant. Now, after more than 44 years at Citigroup or its predecessors, the Chicago-based managing director will retire in March.

Want to drive like a billionaire? Here's how (CNBC)

Described as a "once-in-a-lifetime opportunity," auction site Proxibid is offering the opportunity to own Warren Buffett's personal 2006 Cadillac DTS. Not only does the car boast only 20,310 miles, but it has a large autograph from the famed investor in "authentic sharpie." [...] The car is being auctioned by Girls Incorporated of Omaha, a charity that helps girls ages 5 though 18-years-old to be "strong, smart and bold." The proceeds of the auction will go to the organization.