A few quick observations from the $BRKA 10-Q.
The cash balance rose from $138.3B at yearend to $141.6B at 3/31. The media reports cash at $145.4B neglecting a $4.1B payable for T-Bill purchases that appears on the right side of the balance sheet. There was no payable at 12/31. 1/
The cash balance rose from $138.3B at yearend to $141.6B at 3/31. The media reports cash at $145.4B neglecting a $4.1B payable for T-Bill purchases that appears on the right side of the balance sheet. There was no payable at 12/31. 1/
Berkshire purchased $2.6B in common stocks and sold $6.5B for a net sale of $3.9B. The stock portfolio gained about 2% for the quarter and is up nearly 9% ytd. $GM was the best performing stock, up 37% to 3/31. I'd guess it was sold or materially trimmed. 2/
$BYD had grown to a top 7 portfolio holding from a cost of $232 million to $5.9B at yearend and $7.9B on 1/25. BYD is now down 21.5% for the year. I'd guess (and hope) the position was trimmed during the quarter. 3/
The position in $AAPL declined $9.5 billion or 7.9% during the quarter and is now flat for the year to date. Having trimmed the position during 2020, there were no sales of Apple during the first quarter. 4/
Berkshire repurchased $6.6 billion of its shares during the quarter following $24.7B in 2020, $4.9B in 2019 and $1.3B in 2018. Repurchases averaged $3B per month from June of last year through January. As the stock rose in price this year (up 18.6% ytd), the cadence slowed. 5/
Repos totaled $3.0B in Jan, $2B in Feb and $1.6B in March. An additional 3,294 A share equivalents were bought through April 22, so another $1.3B acquired at an avg $400k/share. Seems the appetite rationally shrinks as the price rises. Most companies are not price sensitive. 6/
Berkshire's share repurchases have been at meaningful discounts to intrinsic value and are a great use of capital.
Seeing an expected improvement in most of the subs that were negatively impacted by the COVID. Clayton Homes continues to crush it. Precision remains very weak. 7/
Seeing an expected improvement in most of the subs that were negatively impacted by the COVID. Clayton Homes continues to crush it. Precision remains very weak. 7/
The Texas freeze, aka winter storm "Uri," was expensive. It harmed Lubrizol and caused $150m insurance losses at BH Primary and $310m in P/C reinsurance. Life reinsurance saw sizable losses from increased mortality in the US, Latin America and Africa, presumably COVID. 8/
Insurance results were mixed. GEICO added policies & written premium but saw a decline in premiums earned - credits for COVID continued during but are finally finished in early April. Underwriting profits at GEICO at 11.5% pretax were terrific. BH Primary at 7.8% also good. 9/
Reinsurance underwriting results fairly weak.
A net $2.5B in debt was retired. Debt issued at the holding company was financed at very low interest rates. 600m EUR 20-year paper at 0.5% and $750m 30-year paper for the leasing companies at 2.5% (the 30-year UST yields 2.3%). 10/
A net $2.5B in debt was retired. Debt issued at the holding company was financed at very low interest rates. 600m EUR 20-year paper at 0.5% and $750m 30-year paper for the leasing companies at 2.5% (the 30-year UST yields 2.3%). 10/
Good improvement at BNSF - still operating below normalized. BHE fantastic & continuing to spend enormous capital at good and regulated returns. Anything housing related killing it.
All in a straightforward quarter. Looking forward to the meeting.
finance.yahoo.com/brklivestream
All in a straightforward quarter. Looking forward to the meeting.
finance.yahoo.com/brklivestream
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