reports
- Greggory Warren
- CFA
Some Key Takeaways From the Berkshire Hathaway Annual Meeting
Over the past five years, our unique position on the analyst panel at wide-moat-rated Berkshire Hathaway's annual meeting has allowed us to ask CEO Warren Buffett and Vice-Chairman Charlie Munger questions about the inner workings and performance of Berkshire's operating companies and investments, the capital allocation decision-making at the parent company and subsidiary level, and long-term succession planning for Berkshire's managers. The questions we asked at this year's annual meeting were...
- Greggory Warren
- CFA
Berkshire Sees Improvements at Geico and BNSF in 1Q; Book Value at $21...
As we noted when we first discussed wide-moat-rated Berkshire Hathaway's first-quarter earnings this past weekend, there was little in the results that would alter our long-term view of the firm, and we retain our $330,000 ($220) per Class A (B) share fair value estimate. Coming into 2018, we had expected two issues--a reduction in the U.S. corporate tax rate (from 35% to 21%) and an accounting rule change requiring unrealized gains/losses on Berkshire's stock holdings to be included in reported...
- Greggory Warren
- CFA
Unrealized Investment Losses Impact Berkshire's 1Q Results; No Change ...
Wide-moat rated Berkshire Hathaway's reported first-quarter results that were basically in line with our expectations. We are leaving our $330,000 ($220) per Class A (B) share fair value estimate in place. First-quarter revenue, which now includes unrealized (as well as realized) gains/losses from Berkshire's investments and derivatives portfolios, decreased 22.5% to $50.5 billion. Excluding the impact of investment and derivative gains/losses, first-quarter revenue decreased 9.2%, with much of ...
- Greggory Warren
- CFA
Berkshire Shows Support for Knauf’s Vote No Campaign Against USG; In...
On April 12, Berkshire Hathaway, which is USG’s largest shareholder with at 31% stake, filed an amended schedule 13D, which disclosed that a Berkshire spokesperson told a Bloomberg reporter that the firm currently intends to vote against USG’s four board of director nominees. As we noted previously, Knauf, which is interested in acquiring USG but had its prior two offers rejected by USG’s board of directors, initiated a “vote no†campaign to bring USG to the bargaining table. USG’s ...
- Greggory Warren
- CFA
USG's Board Rejects Unsolicited $42 per Share Bid by Germany-Based Kna...
On March 26, USG’s board of directors unanimously rejected Knauf’s bid to acquire 100% of USG’s shares for $42 each. Including USG’s net debt, this equates to a total enterprise value of about $6.6 billion, or about 10.5 times our estimate for USG’s 2018 EBITDA. The $42 per share offer is approximately 10.5% above our previous $38 fair value estimate and represents about a 25% premium to USG’s March 23 closing stock price. We are increasing our fair value estimate for USG to $42 per ...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.