Mars Cashes Out Warren Buffett to Take Control of Wrigley
Mars Inc. has finally taken full control of Wrigley, formally putting M&Ms and Altoids mints in the same division — and cashing out its partner, Warren E. Buffett, in the process. [...]
Berkshire Hathaway helped Mars buy Wrigley for about $23 billion in 2008. It was a classic deal for the billionaire, who has traditionally favored acquisitions involving well-known names and strongly performing businesses.
But there was a lucrative element in the way Mr. Buffett participated in the transaction. As part of the arrangement, Berkshire received preferred shares worth about $2.1 billion, which paid a 5 percent annual dividend, and $4.4 billion worth of bonds that carried a hefty 11.45 percent interest rate. [...]
Berkshire Is Bigger Than Buffett
We think two big concerns--a belief that Berkshire Hathaway's size will prevent it from growing at a decent clip in the future and that the company's shares will get pummeled once Buffett no longer runs the show--have kept some investors on the sidelines. Although we believe that the wide-moat firm is unlikely to consistently grow its book value per share at a double-digit rate, something that happened nine times during 2001-15 and 40 times during 1965-2015, we think that Berkshire can grow its book value per share at a high-single- to double-digit rate going forward, much as we've seen since the start of the new millennium. This type of growth should leave returns solidly and consistently above the firm's cost of capital [...]
Cash is piling up faster than Warren Buffett can invest it
Warren Buffett has the kind of money problem most people would envy: a growing mountain of cash.
Nearly $73 billion piled up at Berkshire Hathaway by mid-summer, more than Buffett’s conglomerate has ever held before.
And the total continues growing every day Buffett doesn’t make a major investment because Berkshire’s 90-odd businesses generate roughly $1.5 billion in cash every month. [...]
Yahoo! Inc. today announced that it will host the exclusive live stream of Berkshire Hathaway’s annual shareholders meeting on Saturday May 6, 2017, for the second year in a row. Approximately 40,000 Berkshire Hathaway shareholders from around the world attend the highly anticipated annual event. In 2016, Yahoo Finance opened the meeting to the general public via live stream, for the first time ever, with more than 1 million viewers tuning in. [...]
Berkshire Hathaway Eyes Growth Despite Cat Loss Concerns
Berkshire Hathaway’s non-insurance businesses like utilities and & energy, and manufacturing, service & retail, have been reporting favorable results. In fact, total revenue from manufacturing, service and retail has improved substantially over the past several quarters. The strong results across most of the units can be attributed to better economic conditions and higher consumer demand.
Also, the company’s book value has been improving consistently. The insurer’s already robust book value growth is expected to be boosted further with the turn of the economy, increased gains from the value of the derivatives positions, and continued positive contribution from earnings growth in insurance operations. [...]
Atlas Bolt & Screw President Ridenour to retire
Randy Ridenour, President of Atlas Bolt & Screw Company LLC, has decided to retire at the end of 2016 after 32 years with the company. [...]
Atlas Bolt & Screw Company, a Marmon/Berkshire Hathaway company, offers a wide range of construction fasteners that reduce installation costs and extend the lives of metal buildings worldwide. [...]
Shaw Contract eyes smaller town, to raise investment limit
Shaw Contract, a business unit of Shaw Industries Group Inc which is a wholly-owned subsidiary of the Warren Buffet's Berkshire Hathaway, is looking to penetrate into the small towns and also raise investment limit in the country. The Bengaluru [India]-based Shaw Contract India has been in operations for over two decades and is the second-largest supplier of commercial carpet tiles in the country with a market share of around 22 percent, the company claimed. [...]
Berkshire can't resist India any more, to return with reinsurance business
Warren Buffett, who had exited India three years back citing regulatory suffocation, can’t resist India any more. Berkshire Hathaway is in fact returning to India with a plan to set up a reinsurance branch which would be much bigger than what it was when it was into insurance broking. [...]
Currently, Berkshire is present in India as a services company and is a leader of reinsurance treaty — purchased by insurers from one or more other companies — of large insurance companies including Bajaj Allianz General Insurance.
The company provides support services such as data collection, market research and training to insurance companies. As a leader of the treaty, it reinsures vast portions of the risk underwritten by these companies. [...]
Berkshire Hathaway Specialty Insurance Company Expands to Macau, Makes Local Office Appointments
Berkshire Hathaway Specialty Insurance Company (BHSI) today announced that it has received a license to provide insurance and reinsurance in Macau and filled key positions in its newly established Macau office. [...]
