Berkshire Hathaway extends $1.8B rescue plan for troubled Canadian mortgage lender
Berkshire Hathaway, the conglomerate controlled by Warren Buffett, agreed Wednesday to buy a stake in the troubled Canadian mortgage lender Home Capital Group in a $1.8 billion rescue plan.
Berkshire will pay $300.7 million for a 38.4% stake of the Toronto-based company and extend a $1.5 billion line of credit. [...]
In recent years, Home Capital has repeatedly missed its financial guidance amid weaker loan volumes and declining income. In March, the company also revealed that several executives and directors have received enforcement notices from the Ontario Securities Commission related to its disclosure practices and stock trades. [...]
Store Capital says Berkshire Hathaway invested $377 million in the company, which represents a 9.8 percent stake in the real estate investment trust.
Berkshire's investment makes the company the third largest holder in Store Capital, after Vanguard Group and Fidelity Management & Research, according to FactSet. [...]
Store Capital has investments in over 1,750 properties in 48 states, according to the company. AMC Entertainment, Applebee's and Ashley Furniture are among its 10 biggest customers, according to an investor presentation. [...]
Texas examines Berkshire Hathaway ownership of RV maker, dealers
In notices of decisions made public last week, the Texas Department of Motor Vehicles recommended revoking the licenses of 30 of Berkshire Hathaway’s auto dealers in Texas and fining them a total of $30,000 because the Omaha-based parent company also owns Forest River, a recreational vehicle manufacturer.
Texas law prohibits direct or indirect ownership of vehicle dealers by vehicle manufacturers, the notices said. The law is intended to protect independent auto dealers from unfair competition by manufacturer-owned dealerships.
The department also recommended a $1,000 fine and revoking the manufacturing license of Forest River, which has a cargo trailer manufacturing facility in Waco, Texas. [...]
Berkshire Hathaway units settle comp dispute with California
Berkshire Hathaway Inc. units have settled with California regulators over alleged "bait and switch" marketing tactics for workers compensation coverage.
According to a statement Thursday by the California Department of Insurance, the insurers have agreed to lower rates for certain coverages and make other changes to coverage terms.
The settlement applies to policies sold by Berkshire units California Insurance Co. and Applied Underwriters Captive Risk Assurance Co.
According to the statement, the insurers "were selling a workers compensation product with illegal side agreements that modified the obligations of the parties under the policy." [...]
Berkshire Hathaway in 3 Charts
Berkshire Hathaway is one of the world's most successful companies. Over the last 52 years -- during which Warren Buffett has been chairman and CEO -- it compounded its investors' wealth at a remarkable rate, turning an original $1,000 investment into nearly $20 million for its earliest investors.
The three charts below explain how Berkshire grew to become as large as it is today, and why the future is likely to yield lower returns for the company's investors going forward. [...]
Berkshire Hathaway Inc.'s Most Brilliant Moves in 2017 So Far
In many ways, Warren Buffett-led conglomerate Berkshire Hathaway has had a rather uneventful 2017. The company hasn't announced any major acquisitions, and other than a few major moves in the stock portfolio, it hasn't really been in the headlines much.
Yet the few major moves Berkshire has made should be good for the company's future. Here's a quick recap of three moves the company has made, why they should be positive long-term catalysts, and the lessons you can learn from each. [...]
The Cost of Lunch With Warren Buffett: $2.68 Million
A bidder pledged $2.68 million to a San Francisco charity in exchange for a lunch date with billionaire investor Warren Buffett.
The winner of the online auction that concluded Friday on eBay Inc.’s website chose to remain anonymous. The final price fell short of last year’s $3.46 million winning pledge, which tied the previous record.
As in years past, the winner gets to bring seven friends to dine with Buffett, 86, at New York’s Smith & Wollensky steakhouse. Proceeds benefit Glide, a San Francisco charity that serves meals to the homeless, hosts support groups through its women’s center for abuse victims and provides treatment for drug addiction. [...]
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