Money and Finance
- Berkshire Profit Benefits From Shift To Rail, Utilities
Warren Buffett’s shift toward businesses like railroads and power production that provide steady profits is paying off for his Berkshire Hathaway Inc. Earnings from Burlington Northern Santa Fe and MidAmerican Energy Holdings accounted for $1.46 billion,...
- Warren Buffett On Cnbc
Links to videos: Warren Buffett Calls Berkshire's 2012 'Subpar' Buffett: What Will Happen When Fed Reverses Course How Buffett Uses His Preferred Stock to Leverage Deals Why Warren Buffett's Not 'Anti-Pipeline' Earnings Are Key...
- Buffett Awards Wall Street-sized Pay Praised By Dimon
Berkshire Hathaway Inc. (BRK/A) Chief Executive Officer Warren Buffett, who has said banker greed helped deepen the U.S. financial crisis, attracts the workers he wants with compensation that competes with Wall Street awards. Berkshire gave $17.4 million...
- Buffett Mystique Hasn't Boosted Berkshire
I’m a few days late getting to this. I think a key to keep in mind is that Buffett thinks Berkshire is significantly undervalued and willing to buy back shares at any price below 1.1x book value. Warren Buffett's towering stature among investors...
- Omaha Trip Report
The Berkshire Hathaway weekend is a lot of fun, its great to hang out with friends and talk and learn together. Every year there is something new. This year, I completed what I call the Omaha Triathlon part 1 - Berkshire Hathaway meeting, part 2- the...
Money and Finance
Berkshire Avoids Rout as Buffett Sidesteps Bonds
Warren Buffett’s preference for buying stocks and whole companies rather than bonds is helping Berkshire Hathaway Inc. (BRK/A) weather a spike in interest rates better than other insurers.
Book value rose 2 percent to about $122,900 per Class A share in the three months ended June 30, Omaha, Nebraska-based Berkshire said Aug. 2. Insurance competitors including Allstate (ALL) Corp., American International Group Inc. (AIG) and Travelers (TRV) Cos. posted second-quarter declines in the measure of assets minus liabilities.
Interest rates surged in the period after Federal Reserve Chairman Ben S. Bernanke signaled the central bank could begin to taper its $85 billion-a-month bond purchases this year. That wiped billions of dollars from insurers’ portfolios, which consist mostly of fixed-income securities. Buffett’s firm owns stocks valued at more than three times as much as bond holdings.
“He just plays a different game,” Tom Lewandowski, an analyst at Edward Jones & Co., said in an interview. “He can take more risk in his investment portfolio” than other insurers, because Berkshire keeps a lot of cash on hand and has other sources of earnings.
Buffett, Berkshire’s chairman, chief executive officer and largest shareholder, told investors in February 2012 that bonds were among the “most dangerous” assets. Yields, he said, weren’t enough to compensate for the risk of inflation. He reiterated that view in May, saying that Berkshire wasn’t buying corporate debt because of low rates.
- Berkshire Profit Benefits From Shift To Rail, Utilities
Warren Buffett’s shift toward businesses like railroads and power production that provide steady profits is paying off for his Berkshire Hathaway Inc. Earnings from Burlington Northern Santa Fe and MidAmerican Energy Holdings accounted for $1.46 billion,...
- Warren Buffett On Cnbc
Links to videos: Warren Buffett Calls Berkshire's 2012 'Subpar' Buffett: What Will Happen When Fed Reverses Course How Buffett Uses His Preferred Stock to Leverage Deals Why Warren Buffett's Not 'Anti-Pipeline' Earnings Are Key...
- Buffett Awards Wall Street-sized Pay Praised By Dimon
Berkshire Hathaway Inc. (BRK/A) Chief Executive Officer Warren Buffett, who has said banker greed helped deepen the U.S. financial crisis, attracts the workers he wants with compensation that competes with Wall Street awards. Berkshire gave $17.4 million...
- Buffett Mystique Hasn't Boosted Berkshire
I’m a few days late getting to this. I think a key to keep in mind is that Buffett thinks Berkshire is significantly undervalued and willing to buy back shares at any price below 1.1x book value. Warren Buffett's towering stature among investors...
- Omaha Trip Report
The Berkshire Hathaway weekend is a lot of fun, its great to hang out with friends and talk and learn together. Every year there is something new. This year, I completed what I call the Omaha Triathlon part 1 - Berkshire Hathaway meeting, part 2- the...