Showing posts with label Moody's. Show all posts
Showing posts with label Moody's. Show all posts

Wednesday, August 6, 2014

Berkshire News Briefs - 8/6/14

The biggest news of the week was the quarterly earnings report, covered in my earlier post. So I'll skip over most of the earnings-related news here.

What Warren Buffett Will Do With $55 Billion in Cash (Fool)

Of course, a large chunk of the cash on hand at Berkshire Hathaway is likely earmarked for acquisitions, but the reinvestment efforts within Berkshire may end up being equally as important to the long-term success of the company. While it may grab less attention and be less fun than imagining Buffett's next huge buyout, reinvesting in a consistently profitable business appears to be exactly what is needed to sustain the company's impressive returns.

Why Buffett's Berkshire Hathaway Is Clearly a Buy (Barron's)

A flush Berkshire Hathaway is humming along as a patient Warren Buffett awaits an opportunity to deploy some of the company's huge cash hoard of $49 billion. Berkshire's class A shares are up 2.7% today, or just over $5,000, to $194,300, leaving them just shy of their record $194,670 set in May. [...] The shares, up 8% this year, still look appealing trading for about 1.35 times the company's June 30 book value of $142,483. [...] CEO Buffett's willingness to repurchase stock at 1.2 times book backed by Berkshire's cash-rich balance sheet may help keep a floor under the stock. That floor is now around $171,000 per class A share, but it typically rises every quarter as book grows.

Berkshire Hathaway Has Raised Its VeriSign Stake Yet Again (24/7 Wall St.)

VeriSign Inc. has had two key things going for it of late. Its directory listing dominance of the .com and other domain extensions has been a dominant part of its business. It has also been at the forefront of Internet security. Now a third issue has arisen — Warren Buffett and Berkshire Hathaway Inc. have increased their VeriSign stake yet again. An SEC filing from the weekend showed that Buffett, Berkshire Hathaway and its entities now control some 12,985,000 shares of common stock. This represents a 10.4% stake of the outstanding shares of VeriSign.

Brooks Sports Moves New Home Closer to Trails (New York Times)

In August, nearly 300 employees of the running shoe and apparel company Brooks Sports Inc. will head to work at the company’s new global headquarters, three miles north of downtown Seattle. Instead of nondescript buildings in an office park, they will cross the George Washington Memorial Bridge to encounter a sculpted troll underneath, a 16-foot statue of Vladimir Lenin, art walks and running trails. The neighborhood’s motto is De Libertas Quirkas, or freedom to be quirky. [...] “You can access some of the best running trails in the city from right here,” said Jim Weber, the chief executive of Brooks, pointing across the street to the Burke-Gilman Trail, a 27-mile thoroughfare for runners and cyclists. “The opportunity to be right here, so close to our customers, is amazing.”

Which utilities are doing the most in clean energy? (Portland Business Journal)

Berkshire Hathaway actually owns two of the top 6: NV Energy and PacifiCorp.

The top is utilities for renewable energy were NV Energy (21.08 percent), Xcel Energy (18.11 percent), PG&E (16.87 percent) Sempra Energy (16.86 percent), Edison International (16.67 percent) and PacifiCorp parent Berkshire Hathaway Energy (12.71 percent).

JM Re-Aligning Engineered Products Business to Drive Growth (MarketWatch / BusinessWire)

Johns Manville (JM) today announced they would merge their American, European and Asian activities for Engineered Products into one global business unit. JM’s Engineered Products business manufactures and markets premium-quality glass and polyester nonwoven products for the building and construction industry, filtration and battery separation media, reinforcement glass fibers for composites and specialty industrial glass products.

Study Accuses Moody's Of Ratings Bias Toward Corporate Owners (Forbes)

A new study concludes that Moody’s gave significantly higher ratings on bonds and derivatives issued by companies in the investment portfolios of its two largest shareholders, including Warren Buffett’s Berkshire Hathaway and took longer to downgrade them than its rival Standard & Poor’s.

Smarter Agent’s white-label real estate apps saw 4M+ downloads in 1 year (Technically Philly)

Smarter Agent, based in Collingswood, N.J., powers mobile apps for national real estate giants like Keller Williams, Sotheby’s and Berkshire Hathaway. The “white label” apps, which show homes for sale and rent and give you direct access to a realtor, have been downloaded more than four million times in the last year, said cofounder Brad Blumberg. [...] Its main competitors are online listings sites and mobile apps Zillow and Trulia, which recently became one company, when Zillow bought Trulia for $3.5 billion. Blumberg said that by covering 420 realtor markets around the country, Smarter Agent “exceeds the reach” of the newly merged company.

1 Thing Warren Buffett Wants You to Know About Berkshire Hathaway Inc. (Fool)

Buffett's second point was to highlight that Berkshire Hathaway also has a stable of noninsurance businesses, including Burlington Northern Santa Fe, Berkshire Hathaway Energy, Lubrizol, Marmon and many, many more. Even thought he mentioned the stocks first, those investment portfolio are clearly not his main focus [...] In fact, from 1990 to 2013, the per-share earnings from its noninsurance businesses have grown at an average annual rate of 21.5%, whereas its investments have grown at 13%. And as you can see, that staggering difference resulted in the earnings of the non-insurance businesses standing nearly 90 times higher today than in 1990, versus "just" a 16 times greater value in its investments.

Tuesday, May 14, 2013

Berkshire Subsidiary News - 5/14/13

Berkshire Hathaway Intrinsic Value Pie Chart (Seeking Alpha)

I linked to this Seeking Alpha article for the terrific pie chart showing where Berkshire Hathaway gets its value from. It nicely shows the relative size of the different parts of the company. The Fool also had a different graphic last week...

Understanding Berkshire Hathaway Stock (Fool)

Berkshire Hathaway is a large, highly diversified conglomerate. So if you want to own Berkshire Hathaway stock, it's crucial that you understand exactly how the company makes money. [...] The composition of Berkshire's earnings is definitely not an exact representation of the composition of the stock's value. But it's a great start for any investor beginning due diligence on Berkshire Hathaway stock.

Berkshire CEOs Spend Quietly, Match Buffett on Heinz Deal (Bloomberg Businessweek)

Warren Buffett stole headlines when he committed $12.1 billion in a deal to take ketchup maker HJ Heinz Co. private this year. Managers at his Berkshire Hathaway Inc. spent as much in 2012 while attracting less attention. Executives who gathered last week for Berkshire’s annual meeting in Omaha, Nebraska, said in interviews that they plan to spend even more this year as they upgrade a rail network and energy utilities, expand manufacturing capacity and hunt for additional acquisitions.

Brewer shoe manufacturer acquired by Berkshire Hathaway company (Bangor Daily News)

Justin Brands Inc. announced on Thursday the acquisition of Brewer-based Highland Shoe Co. LLC. Financial details of the acquisition were not disclosed, but all 35 employees will be retained at the Brewer company [...] Justin Brands said in its release that the Brewer plant will continue its current production level of more than 400 pairs of hand-sewn shoes each week. [...] Highland annually makes around 25,000 shoes by hand for private labels such as Yuketen, Red Wing, Oak Street Bootmakers and Sperry Top-Sider Shoes and “50-60 percent of our shoes get shipped overseas somewhere,” Sutton said last year. It produces casual and dress shoes for men and women.

The last time Berkshire Hathaway bought a Maine shoe business... (Bangor Daily News)

The last time Berkshire Hathaway bought a Maine shoe business was in 1993 — and the business was Dexter Shoe. [...] Beginning in 1998, Dexter began shedding jobs, a bit at a time, citing global competition. Then, beginning in 1999, the company began to shutter its manufacturing facilities: first Milo, then Newport, followed by Skowhegan. A week after the terrorist attacks on 9/11 Dexter Shoe announced it was closing its final manufacturing facility in Maine, the one located in its namesake town of Dexter. Buffett came to regret his purchase of Dexter Shoe, calling it in 2008 “the worst deal that I’ve made.”

No decision yet on MidAmerican Energy nuclear facility (Cedar Rapids Gazette)

“I am getting overwhelming feedback that people aren’t interested in a nuclear plant in Muscatine County,” said Jeff Sorensen, who chairs the Muscatine County Board of Supervisors. “But I don’t know what our role in the process is except to say we don’t want it.” That role? It’s pretty limited, actually. Though the board can speak on behalf of the public, it has no legal authority to approve or prevent a nuclear power plant in Muscatine County. That authority lies with the Nuclear Regulatory Commission, a federal agency.

Berkshire Agrees to Limit DaVita Stake After Weighing Increase (Bloomberg Businessweek)

Warren Buffett’s Berkshire Hathaway Inc., the largest investor in DaVita HealthCare Partners Inc., agreed not to acquire more than 25 percent of the dialysis provider after raising the possibility of increasing its stake. [...] Berkshire held almost 15 million DaVita shares, a stake of about 14 percent, according to data compiled by Bloomberg based on a March filing. Standstill agreements are typically arranged by companies seeking to prevent an unsolicited takeover.

Berkshire Hathaway sells off more Moody's shares, stake down to 11.1% (Economic Times)

Warren Buffett's Berkshire Hathaway Inc sold off another 1.375 million of its Moody's Corp shares in the past three trading days, leaving it with an 11.1 per cent stake in the parent of credit rating agency Moody's Investors Service. Berkshire sold the shares in several transactions on Thursday, Friday and Monday, yielding a total of $84.5 million and leaving it with about 25.3 million shares, according to a regulatory filing on Monday.

Buffett's CEOs: The Women of Berkshire Hathaway (YouTube / Bloomberg Video)

Bloomberg's Betty Liu introduces us to the female CEOs at Berkshire Hathaway companies. They discuss the bond they share, the common obstacles they face and their thoughts on word that the successor to Warren Buffett will be a man... for now. They speak on Bloomberg Television's "In The Loop."