Berkshire Hathaway hints at new purchase, ups Charter stake (Reuters)
Warren Buffett's Berkshire Hathaway Inc on Friday said it boosted its stake in cable TV operator Charter Communications Corp, and signaled it may have another large investment planned after agreeing to buy Precision Castparts Corp in its largest-ever purchase. [...]
Berkshire kept some details about its holdings confidential. The SEC sometimes lets the Omaha, Nebraska-based company delay disclosures of new stakes so Buffett can build them quietly, rather than have investors piggyback on him before he finishes. [...]
Berkshire reported lower stakes in conglomerate Chicago Bridge & Iron Co, media company Viacom Inc and Wabco Holdings Inc, which sells braking and suspension systems for commercial vehicles.
Warren Buffett’s Berkshire Hathaway Sells Off Shares in Phillips 66, National Oilwell Varco (WSJ Moneybeat)
Warren Buffett’s Berkshire Hathaway Inc. sold off its shares in Phillips 66 and National Oilwell Varco Inc. in the second quarter, as it continued to cut its positions in energy companies amid a global supply glut that has sent crude prices into a tail spin.
Berkshire had already sold most of its stake in National Oilwell Varco in the first quarter, when it slightly raised its Phillips 66 holdings. [...]
Berkshire’s only new stake in the quarter was a 20 million share investment in auto-paint maker Axalta Coating Systems Ltd., which Berkshire bought from Carlyle Group LP for $28 a share.
Buffett’s Precision Castparts Deal Will Boost Berkshire Hathaway’s Value (Barron's)
Precision Castparts, a once fast-growing supplier to the airline industry, looks to be a good—not great—deal for Berkshire. Its profits have been pressured due to the company’s exposure to the energy industry. The shares were down 20% year to date before the Berkshire announcement, although the company has been a huge winner under CEO Mark Donegan. [...]
Berkshire is paying $235 a share, or about 19 times Precision’s earnings for the fiscal year ending March 2016. That implies an earnings “yield” of 5.5%, well above the near-zero yield Berkshire has been earning on its cash, which totaled $60 billion on June 30. Berkshire’s return could be closer to 7% initially because it will issue about $10 billion of low-cost debt to finance the deal.
After hacking scheme, it's time to rethink how companies use wire services (PR Week)
Business Wire sent an e-mail to its clients with a letter from CEO Cathy Baron Tamraz. It began, "We understand your concerns surrounding this week’s federal indictment of a global hacking…We would like to take this opportunity to provide you with the story behind the headlines."
The letter explained that government investigators asked Business Wire about fewer than 85 releases, and pointed out that no examples listed in the indictments and the SEC complaint were Business Wire releases.
"Despite our extreme vigilance, today's reality is that no one today is immune from hacking," it continued. "We want to reassure you that Business Wire’s systems are safe and secure. We continue to work closely with a leading cybersecurity firm to ensure that they remain so."
Warren Buffett's Berkshire Hathaway gets special ASX treatment in IAG deal (Sydney Morning Herald)
The Australian Securities Exchange has granted billionaire Warren Buffett's Berkshire Hathaway poll position in any future capital raisings by Insurance Australia Group, which has raised the hackles of some investors, and proxy adviser group Ownership Matters.
IAG, which has one of the biggest shareholder bases of companies listed on the local exchange, was granted a waiver that would permit Berkshire anti-dilution rights for its shares in the insurer.
The initial deal between IAG and Berkshire, which saw the insurance giant sign away 20 per cent of its business to the US group, was announced in June but not many investors were aware of the waiver. [...]
Sure, but what does that mean in layman's terms?
The hidden catch to Berkshire Hathaway’s Insurance Australia Group Ltd investment (Fool Australia)
If IAG were to issue say, one new share for every thirty held, this would normally dilute NICO who currently holds one share in every twenty (5%) on issue. However, as it has this anti-dilution protection, NICO will be entitled to buy one share for every twenty it holds.
If NICO happened to hold 10%, it would be entitled to 10% of the new shares to be issued.
Buffett-Backed Kraft Heinz Cuts 2,500 Jobs as Hees Targets Costs (Bloomberg)
Kraft Heinz Co., the food company that counts Warren Buffett’s Berkshire Hathaway Inc. as its largest shareholder, is eliminating about 2,500 jobs in the U.S. and Canada under the new management. [...]
Kraft Foods and H.J. Heinz merged in July in a deal orchestrated by Buffett and 3G Capital, which jointly controlled the ketchup company. 3G’s Bernardo Hees, who is now running the combined foodmaker, cut more than 7,000 jobs in 20 months after taking over at Heinz. Berkshire Vice Chairman Charles Munger has endorsed the job cuts, saying such measures are essential to a productive capitalist system.
The alternative to reducing staff is “what happened in Russia,” Munger said at Buffett’s annual meeting in May. “The whole damn economy didn’t work.”
How Much Is Warren Buffett’s $5 Billion Investment in Bank of America Worth Today? (Fool)
At the low point of Bank of America's post-financial crisis struggles, Warren Buffett became its biggest advocate by investing $5 billion of Berkshire Hathaway's money into the nation's second biggest bank by assets. [...]
When you include the $5 billion in preferred stock, Berkshire Hathaway's investment in Bank of America is worth a total of $12.2 billion. That equates to a 144% gain in four years -- 168% if you also account for the roughly $1.2 billion in cumulative dividend payments on its preferred stock.
How rich Warren Buffett was at your age (Business Insider)
By age 43, Buffett's personal net worth was at a high of $34 million. He used some of this capital the year prior to purchase See's Candies for $25 million, reports The Motley Fool, and it became an investment that's still profitable in 2015. But, the mid-1970s proved to be a rough period for Berkshire. By 1974, its decreasing share price lowered Buffett's net worth to $19 million when he reached 44, reports Dividend.
Never one to let his savvy investment skills fall by the wayside, Buffett was able to recover financially. By the end of the decade, he had increased his net worth to $67 million at age 47. By the close of the 1970s, the median U.S. household income was $16,530.
