1/🧵
One of my favorite ways to learn is to backward-engineer famous investments, especially Warren Buffett’s.
This thread gathers BUFFETT’S INVESTMENTS from the past decades, providing “tweet-sized” information on each one.
Best enjoyed with a cup of tea 🫖
One of my favorite ways to learn is to backward-engineer famous investments, especially Warren Buffett’s.
This thread gathers BUFFETT’S INVESTMENTS from the past decades, providing “tweet-sized” information on each one.
Best enjoyed with a cup of tea 🫖
2/🧵
Disclosure: The first patch will be in chronological order, but later ones added as they come.
There are so many cases that I am sure to miss some. Thanks in advance for letting me know what I missed and pointing out any errors there may be.
With this, let’s begin 😊
Disclosure: The first patch will be in chronological order, but later ones added as they come.
There are so many cases that I am sure to miss some. Thanks in advance for letting me know what I missed and pointing out any errors there may be.
With this, let’s begin 😊
3/🧵
In 1942 at the ripe age of 11, Warren Buffett invested his life savings of $114.75 ($2,100 in 2021 dollars).
His first ever purchase was three preferred shares of Cities Services (today Citgo), later acquired by Occidental Petroleum, now owned by Petroleos de Venezuela.
In 1942 at the ripe age of 11, Warren Buffett invested his life savings of $114.75 ($2,100 in 2021 dollars).
His first ever purchase was three preferred shares of Cities Services (today Citgo), later acquired by Occidental Petroleum, now owned by Petroleos de Venezuela.
4/🧵
In 1959, Buffett Partnership allocated 35% of net worth to Sanborn Map, provider of detailed infrastructure maps.
It was a balance sheet play – high certainty and conviction.
-Market cap $5 mln ($45/sh)
-Marketable securities $7 mln ($65/sh)
-Earnings $0.1 mln ($1/sh)
In 1959, Buffett Partnership allocated 35% of net worth to Sanborn Map, provider of detailed infrastructure maps.
It was a balance sheet play – high certainty and conviction.
-Market cap $5 mln ($45/sh)
-Marketable securities $7 mln ($65/sh)
-Earnings $0.1 mln ($1/sh)
5/🧵
Less-known venture capital type of a deal to Mid-Continent Tab Card Company in 1961.
-Valuation $0.375 mln
-$1 mln sales
-70%+ growth
-36% profit margin
-Invested $60k or 20% of his personal net worth
h/t @DividendGrowth
Alice Schroeder:
Less-known venture capital type of a deal to Mid-Continent Tab Card Company in 1961.
-Valuation $0.375 mln
-$1 mln sales
-70%+ growth
-36% profit margin
-Invested $60k or 20% of his personal net worth
h/t @DividendGrowth
Alice Schroeder:
6/🧵
Dempster Mill was Buffett Partnership success from 1962, a balance sheet play with little to no earnings power. Star manager, Harry Bottle, had a lot to do with the outcome.
Key figures:
-Average cost $28/share
-Estimated fair value $35/share
-Sold at $80/share in 1963
Dempster Mill was Buffett Partnership success from 1962, a balance sheet play with little to no earnings power. Star manager, Harry Bottle, had a lot to do with the outcome.
Key figures:
-Average cost $28/share
-Estimated fair value $35/share
-Sold at $80/share in 1963
7/🧵
In his early years, Buffett bought a share of Delta Duck Club – a hunting ground that proved to be a lucrative oil & gas field.
Figures:
-Share price $29,000
-Excess cash $20,000
-EBIT $11,000
-Earnings $7,000
-P/E 4.1
-EV/EBIT 0.8
buffett.cnbc.com/video/1995/05/…
In his early years, Buffett bought a share of Delta Duck Club – a hunting ground that proved to be a lucrative oil & gas field.
Figures:
-Share price $29,000
-Excess cash $20,000
-EBIT $11,000
-Earnings $7,000
-P/E 4.1
-EV/EBIT 0.8
buffett.cnbc.com/video/1995/05/…
8/🧵
In 1972, Berkshire bought See’s Candies (required capital from the free float of Blue Chip Stamps).
-Price $25 mln
-Sales $30 mln
-Net tangible assets $8 mln
-EBIT $4.2 mln
-Net income $2 mln
-P/E 12.5
-EV/EBIT 6
-Interest rate 6.2%
d2wsh2n0xua73e.cloudfront.net/wp-content/upl…
In 1972, Berkshire bought See’s Candies (required capital from the free float of Blue Chip Stamps).
-Price $25 mln
-Sales $30 mln
-Net tangible assets $8 mln
-EBIT $4.2 mln
-Net income $2 mln
-P/E 12.5
-EV/EBIT 6
-Interest rate 6.2%
d2wsh2n0xua73e.cloudfront.net/wp-content/upl…
9/🧵
In 1973, Buffett bought $10.6 mln worth of Washington Post stock and joined its board.
-Market cap $80 mln
-Net income $13.3 mln
-P/E 6
-ROE 15.7%
-Interest rate 6.8%
Buffett thought it was worth $400 mln or more.
berkshirehathaway.com/letters/1985.h…
csinvesting.org/wp-content/upl…
In 1973, Buffett bought $10.6 mln worth of Washington Post stock and joined its board.
-Market cap $80 mln
-Net income $13.3 mln
-P/E 6
-ROE 15.7%
-Interest rate 6.8%
Buffett thought it was worth $400 mln or more.
berkshirehathaway.com/letters/1985.h…
csinvesting.org/wp-content/upl…
10/🧵
Between 1976 and 1980, Berkshire bought $47 mln (7.2 mln shares) worth of then-struggling insurance company GEICO.
GEICO in 1980:
-Market cap $296 mln
-Revenues $705 mln
-Earnings $60 mln
-ROE 30%
-P/E 5
Between 1976 and 1980, Berkshire bought $47 mln (7.2 mln shares) worth of then-struggling insurance company GEICO.
GEICO in 1980:
-Market cap $296 mln
-Revenues $705 mln
-Earnings $60 mln
-ROE 30%
-P/E 5
11/🧵
In 1983, Berkshire Hathaway acquired 90% of Nebraska Furniture Mart from the legendary Rose Blumkin, “Mrs. B”.
-Price paid $60.5 mln
-Sales $100 mln
-EBIT $7 mln
-Net income $4.5 mln
-EV/EBIT 14.2
-P/E 22.2
berkshirehathaway.com/letters/1984.h…
buffett.cnbc.com/video/2014/05/…
In 1983, Berkshire Hathaway acquired 90% of Nebraska Furniture Mart from the legendary Rose Blumkin, “Mrs. B”.
-Price paid $60.5 mln
-Sales $100 mln
-EBIT $7 mln
-Net income $4.5 mln
-EV/EBIT 14.2
-P/E 22.2
berkshirehathaway.com/letters/1984.h…
buffett.cnbc.com/video/2014/05/…
12/🧵
In 1985, Buffett invested $516 mln in news and media business Capital Cities/ABC – his largest at the time and later to be turned to Disney stock via acquisition.
1984:
-Market value $2,760 mln
-Earnings $200 mln
-P/E 13.8
chicagotribune.com/news/ct-xpm-19…
In 1985, Buffett invested $516 mln in news and media business Capital Cities/ABC – his largest at the time and later to be turned to Disney stock via acquisition.
1984:
-Market value $2,760 mln
-Earnings $200 mln
-P/E 13.8
chicagotribune.com/news/ct-xpm-19…
13/🧵
In 1989, Berkshire invested $358 mln in USAir. “My name is Warren and I'm an airoholic”
-Valuation $2,3 bln
-Net income $174 mln (avg. for 1984-86)
-P/E 13.2
-Pref. dividend 9.25%
-Interest rates 8.5%
berkshirehathaway.com/letters/1989.h…
In 1989, Berkshire invested $358 mln in USAir. “My name is Warren and I'm an airoholic”
-Valuation $2,3 bln
-Net income $174 mln (avg. for 1984-86)
-P/E 13.2
-Pref. dividend 9.25%
-Interest rates 8.5%
berkshirehathaway.com/letters/1989.h…
14/🧵
Although a Pepsi fan in his 20s, Buffett’s purchases in 1988-1989 made Coke the largest Berkshire investment at $1 bln (35% of portfolio).
1988:
-Market cap $15 bln
-Earnings $1 bln
-ROE 33%
-P/E 15
-Interest rate 8.8%
gurufocus.com/news/205476/re…
h/t @TSOH_Investing
Although a Pepsi fan in his 20s, Buffett’s purchases in 1988-1989 made Coke the largest Berkshire investment at $1 bln (35% of portfolio).
1988:
-Market cap $15 bln
-Earnings $1 bln
-ROE 33%
-P/E 15
-Interest rate 8.8%
gurufocus.com/news/205476/re…
h/t @TSOH_Investing
15/🧵
In 1989, Berkshire Hathaway bought $600 million (11% stake) of razor-blade manufacturer Gillette.
For 1988 (1989):
-Market value $5.5 bln
-Sales $3.6 (3.8) bln
-Net income $269 (285) mln
-P/E 20
-8.75% pref. div.
berkshirehathaway.com/letters/1989.h…
apnews.com/article/db0be6…
In 1989, Berkshire Hathaway bought $600 million (11% stake) of razor-blade manufacturer Gillette.
For 1988 (1989):
-Market value $5.5 bln
-Sales $3.6 (3.8) bln
-Net income $269 (285) mln
-P/E 20
-8.75% pref. div.
berkshirehathaway.com/letters/1989.h…
apnews.com/article/db0be6…
16/🧵
Wells Fargo was struggling with California real estate market in 1989, triggering Buffett to initiate a position in this traditional U.S. bank.
In 1990:
-Market cap $3 bln
-Earnings $600 mln
-P/E 5
-Interest rate 8.6%
h/t @RobertGHagstrom for the caption
Wells Fargo was struggling with California real estate market in 1989, triggering Buffett to initiate a position in this traditional U.S. bank.
In 1990:
-Market cap $3 bln
-Earnings $600 mln
-P/E 5
-Interest rate 8.6%
h/t @RobertGHagstrom for the caption
17/🧵
In 1991, Buffett made its first major foreign investment in the global stout market by buying $325 mln worth of Guinness’ stock.
1991:
-Market value £9.4 bln
-Net income £636 mln
-P/E 14.8
h/t @RobertGHagstrom for the figures in caption
In 1991, Buffett made its first major foreign investment in the global stout market by buying $325 mln worth of Guinness’ stock.
1991:
-Market value £9.4 bln
-Net income £636 mln
-P/E 14.8
h/t @RobertGHagstrom for the figures in caption
18/🧵
By March 1995, Berkshire had acquired nearly 10% of American Express $AXP.
Figures in 1994:
-Market cap $13 bln
-Earnings $1.4 bln
-P/E 9.3
-Interest rate 5.9%
By March 1995, Berkshire had acquired nearly 10% of American Express $AXP.
Figures in 1994:
-Market cap $13 bln
-Earnings $1.4 bln
-P/E 9.3
-Interest rate 5.9%
19/🧵
In 1996, Berkshire bought FlightSafety, world's leader in the training of pilots.
-Price paid $1.5 bln
-Revenues $326 mln
-EBIT $117 mln
-Net income $85 mln
-P/E 17.6
-Interest rate 6.4%
berkshirehathaway.com/letters/1996.h…
theoraclesclassroom.com/wp-content/upl…
In 1996, Berkshire bought FlightSafety, world's leader in the training of pilots.
-Price paid $1.5 bln
-Revenues $326 mln
-EBIT $117 mln
-Net income $85 mln
-P/E 17.6
-Interest rate 6.4%
berkshirehathaway.com/letters/1996.h…
theoraclesclassroom.com/wp-content/upl…
20/🧵
In 1997, fast-food franchise International Dairy Queen became part of Berkshire.
-Price paid $588 mln
-Sales $412 mln
-EBIT $55.3 mln
-Net income $34.4 mln
-P/E 17.1
-Interest rates 6.4%
h/t @brkstudent’s book
berkshirehathaway.com/letters/1997.h…
sec.report/Document/00008…
In 1997, fast-food franchise International Dairy Queen became part of Berkshire.
-Price paid $588 mln
-Sales $412 mln
-EBIT $55.3 mln
-Net income $34.4 mln
-P/E 17.1
-Interest rates 6.4%
h/t @brkstudent’s book
berkshirehathaway.com/letters/1997.h…
sec.report/Document/00008…
21/🧵
In 2000, Berkshire acquired Benjamin Moore Paint, a manufacturer of architectural and industrial coatings.
At the time of acquisition:
-Valuation $1 bln
-Sales $780 mln
-EBIT $137 mln
-Net income $78 mln
-P/E 12.8
-Interest rates 6.0%
sec.report/Document/00009…
In 2000, Berkshire acquired Benjamin Moore Paint, a manufacturer of architectural and industrial coatings.
At the time of acquisition:
-Valuation $1 bln
-Sales $780 mln
-EBIT $137 mln
-Net income $78 mln
-P/E 12.8
-Interest rates 6.0%
sec.report/Document/00009…
22/🧵
In 2000, Berkshire bought Justin Industries, parent of Justin (footwear) and Acme (building materials).
Figures:
-Price $570 mln
-Sales $510 mln
-EBIT $45 mln
-Net income $28 mln
-P/E 20.4
-Interest rates 6.0%
berkshirehathaway.com/letters/2000pd…
sec.report/Document/00000…
In 2000, Berkshire bought Justin Industries, parent of Justin (footwear) and Acme (building materials).
Figures:
-Price $570 mln
-Sales $510 mln
-EBIT $45 mln
-Net income $28 mln
-P/E 20.4
-Interest rates 6.0%
berkshirehathaway.com/letters/2000pd…
sec.report/Document/00000…
23/🧵
In the aftermath of 2000 tech boom, Berkshire bought majority of carpet maker Shaw Industries for $19 a share.
Figures:
-Valuation $2.66 bln
-Sales $4.1 bln
-Net income $228 mln
-P/E 11.7
-Interest rate 6.0%
money.cnn.com/2000/09/06/dea…
sec.report/Document/00000…
In the aftermath of 2000 tech boom, Berkshire bought majority of carpet maker Shaw Industries for $19 a share.
Figures:
-Valuation $2.66 bln
-Sales $4.1 bln
-Net income $228 mln
-P/E 11.7
-Interest rate 6.0%
money.cnn.com/2000/09/06/dea…
sec.report/Document/00000…
24/🧵
In 2001, Berkshire acquired Johns Manville, provider of insulation and roofing systems.
Financials for 1999:
-Price paid $1.8 bln
-Sales $2.2 bln
-EBIT $352 mln
-Net income $256
-P/E 7.0
-Interest rates 5.0%
theoraclesclassroom.com/wp-content/upl…
In 2001, Berkshire acquired Johns Manville, provider of insulation and roofing systems.
Financials for 1999:
-Price paid $1.8 bln
-Sales $2.2 bln
-EBIT $352 mln
-Net income $256
-P/E 7.0
-Interest rates 5.0%
theoraclesclassroom.com/wp-content/upl…
25/🧵
In 2002 and 2003, Berkshire bought 1.3% of PetroChina for $488 mln.
PetroChina in 2001:
-Market price $37 bln
-Revenues $28.9 bln
-EBIT $8.7 bln
-Net income $5.7 bln
-P/E 6.5
-Long-term interest rates 4.6%
sec.report/Document/00011…
berkshirehathaway.com/letters/2007lt…
In 2002 and 2003, Berkshire bought 1.3% of PetroChina for $488 mln.
PetroChina in 2001:
-Market price $37 bln
-Revenues $28.9 bln
-EBIT $8.7 bln
-Net income $5.7 bln
-P/E 6.5
-Long-term interest rates 4.6%
sec.report/Document/00011…
berkshirehathaway.com/letters/2007lt…
26/🧵
In 2007, Buffett bought $3.2 bln worth of 2nd largest U.S. railroad Burlington Northern Santa Fe (bought in full in 2009).
-Market price $30 bln
-EV $37 bln
-Revenues $15 bln
-EBIT $3.5 bln
-Net income $1.9 bln
-EV/EBIT 10.6
-P/E 15.8
bnsf.com/about-bnsf/fin…
In 2007, Buffett bought $3.2 bln worth of 2nd largest U.S. railroad Burlington Northern Santa Fe (bought in full in 2009).
-Market price $30 bln
-EV $37 bln
-Revenues $15 bln
-EBIT $3.5 bln
-Net income $1.9 bln
-EV/EBIT 10.6
-P/E 15.8
bnsf.com/about-bnsf/fin…
27/🧵
In 2008, Berkshire bought 10% stake in Chinese EV producer BYD. Founder Wang Chuanfu “combination of Thomas Edison and Jack Welch”.
(USD/RMB 7.6)
-Valuation $2.3 bln
-Revenue $2.8 bln
-Net income $220 mln
-P/E 10.5
-Interest rate 3.7%
www1.hkexnews.hk/listedco/listc…
In 2008, Berkshire bought 10% stake in Chinese EV producer BYD. Founder Wang Chuanfu “combination of Thomas Edison and Jack Welch”.
(USD/RMB 7.6)
-Valuation $2.3 bln
-Revenue $2.8 bln
-Net income $220 mln
-P/E 10.5
-Interest rate 3.7%
www1.hkexnews.hk/listedco/listc…
28/🧵
Having long avoided tech companies, Buffett made $10.9 bln bet on $IBM in 2011, or 64 mln shares at an avg price of $170/sh (EV $187/sh).
$IBM:
-Revenue $77.6/sh
-EBIT $15.6/sh
-Earnings $11.5/sh
-EV/EBIT 12
-P/E 14.8
-Interest rate 2.8%
berkshirehathaway.com/letters/2011lt…
Having long avoided tech companies, Buffett made $10.9 bln bet on $IBM in 2011, or 64 mln shares at an avg price of $170/sh (EV $187/sh).
$IBM:
-Revenue $77.6/sh
-EBIT $15.6/sh
-Earnings $11.5/sh
-EV/EBIT 12
-P/E 14.8
-Interest rate 2.8%
berkshirehathaway.com/letters/2011lt…
29/🧵
In 2011, Buffett bought a specialty chemical company Lubrizol.
At the time of investment:
-Price $9.7 bln
-Revenues $5.4 bln
-EBIT $1 bln
-Earnings $0.7 bln
-P/E 13.9
-EV/EBIT 9.7
-Interest rate 2.8%
Lubrizol 10-K:
sec.gov/Archives/edgar…
In 2011, Buffett bought a specialty chemical company Lubrizol.
At the time of investment:
-Price $9.7 bln
-Revenues $5.4 bln
-EBIT $1 bln
-Earnings $0.7 bln
-P/E 13.9
-EV/EBIT 9.7
-Interest rate 2.8%
Lubrizol 10-K:
sec.gov/Archives/edgar…
30/🧵
In 2013, 3G Capital and Berkshire bought together the iconic household name H.J. Heinz Company, Berkshire being the financing partner.
At the time of acquisition:
-Price paid $23 bln
-Sales $11.6 bln
-Net income $923 mln
-P/E 24.9
-Interest rate 2.4%
-9% pref. div.
In 2013, 3G Capital and Berkshire bought together the iconic household name H.J. Heinz Company, Berkshire being the financing partner.
At the time of acquisition:
-Price paid $23 bln
-Sales $11.6 bln
-Net income $923 mln
-P/E 24.9
-Interest rate 2.4%
-9% pref. div.
31/🧵
After learning from $IBM mistake, Buffett changed ships to one with a wider moat, and plowed $36 bln into Apple $AAPL shares in 2016-2018.
Figures in 2016:
-Market cap $603 bln
-Earnings $46 bln
-P/E 13.1
-EV/EBIT 10
-Interest rate 1.8%
berkshirehathaway.com/letters/2020lt…
After learning from $IBM mistake, Buffett changed ships to one with a wider moat, and plowed $36 bln into Apple $AAPL shares in 2016-2018.
Figures in 2016:
-Market cap $603 bln
-Earnings $46 bln
-P/E 13.1
-EV/EBIT 10
-Interest rate 1.8%
berkshirehathaway.com/letters/2020lt…
32/🧵
In 2016, Buffett paid $32.1 billion to buy aircraft and industrial parts maker Precision Castparts.
Figures in 2015:
-Sales $10 bln
-EBIT $2.5 bln
-Net income $1.5 bln
-EV/EBIT 12.8
-P/E 21.4
-Interest rate 5.3%
2015 annual report: sec.gov/Archives/edgar…
In 2016, Buffett paid $32.1 billion to buy aircraft and industrial parts maker Precision Castparts.
Figures in 2015:
-Sales $10 bln
-EBIT $2.5 bln
-Net income $1.5 bln
-EV/EBIT 12.8
-P/E 21.4
-Interest rate 5.3%
2015 annual report: sec.gov/Archives/edgar…
33/🧵
The presented deals are coupled with the prevailing interest rates at the time of acquisition. For these figures, I’ve used Shiller’s monthly data series: econ.yale.edu/~shiller/data/…
Although far from a perfect setup, here’s how P/E and rates stack up on a scatter.
The presented deals are coupled with the prevailing interest rates at the time of acquisition. For these figures, I’ve used Shiller’s monthly data series: econ.yale.edu/~shiller/data/…
Although far from a perfect setup, here’s how P/E and rates stack up on a scatter.
34/🧵
This was thread of Buffett’s purchases - thanks for making it this far!
Credits:
@ChrisBloomstran: Semper Augustus $BRK coverage (semperaugustus.com/clientletter)
@RobertGHagstrom: The Warren Buffett Way
@BRK_Student: The Complete Financial History of Berkshire Hathaway
This was thread of Buffett’s purchases - thanks for making it this far!
Credits:
@ChrisBloomstran: Semper Augustus $BRK coverage (semperaugustus.com/clientletter)
@RobertGHagstrom: The Warren Buffett Way
@BRK_Student: The Complete Financial History of Berkshire Hathaway
35/🧵
If you enjoyed this thread, please like/RT the first post. For more similar content, hit a follow @hkeskiva.
You may also find my earlier threads on business and investing from this "meta-thread" of threads.
Wishing you all relaxing weekend! 🙂🙏
If you enjoyed this thread, please like/RT the first post. For more similar content, hit a follow @hkeskiva.
You may also find my earlier threads on business and investing from this "meta-thread" of threads.
Wishing you all relaxing weekend! 🙂🙏
https://twitter.com/hkeskiva/status/1393471303890477056?s=20
36/🧵
As promised, I'll keep adding deals still missing from this list - thanks for all the great inputs received so far.
Once done with the quite extensive pipeline, we reiterate an overview of the deals against extended list of 'opportunity costs':
- T-bills
- bonds
- SP500
As promised, I'll keep adding deals still missing from this list - thanks for all the great inputs received so far.
Once done with the quite extensive pipeline, we reiterate an overview of the deals against extended list of 'opportunity costs':
- T-bills
- bonds
- SP500
37/🧵
In 2006, Buffett made his first foreign (majority) acquisition by purchasing 80% of an Israeli cutting-tool business ISCAR.
- Valuation $5 bln
- Sales $1.4 bln
- Net income $440 mln
- P/E 11.4
- Interest rate 4.8%
berkshirehathaway.com/letters/2006lt…
bloomberg.com/news/articles/…
In 2006, Buffett made his first foreign (majority) acquisition by purchasing 80% of an Israeli cutting-tool business ISCAR.
- Valuation $5 bln
- Sales $1.4 bln
- Net income $440 mln
- P/E 11.4
- Interest rate 4.8%
berkshirehathaway.com/letters/2006lt…
bloomberg.com/news/articles/…
38/🧵
In 2007, $BRK acquired 60% of private Marmon (products from railroad tank cars to cables).
- Valuation $7.5 bln
- Sales $7 bln
- EBIT $868 mln
- Net income $642 mln (26% tax assumed)
- P/E 11.7
- Interest rates 4.6%
berkshirehathaway.com/letters/2007lt…
industryweek.com/leadership/com…
In 2007, $BRK acquired 60% of private Marmon (products from railroad tank cars to cables).
- Valuation $7.5 bln
- Sales $7 bln
- EBIT $868 mln
- Net income $642 mln (26% tax assumed)
- P/E 11.7
- Interest rates 4.6%
berkshirehathaway.com/letters/2007lt…
industryweek.com/leadership/com…
39/🧵
Story of Berkshire Hathaway started in 1965, when Buffett took over the struggling New England textile maker.
- Avg. price $14.86/sh
- Net working cap $19/sh
- EBIT $4.08/sh
- Net income $2.11/sh
- P/E 7
- int. rate 4.3%
investorsfriend.com/why-warren-buf…
berkshirehathaway.com/letters/1995.h…
Story of Berkshire Hathaway started in 1965, when Buffett took over the struggling New England textile maker.
- Avg. price $14.86/sh
- Net working cap $19/sh
- EBIT $4.08/sh
- Net income $2.11/sh
- P/E 7
- int. rate 4.3%
investorsfriend.com/why-warren-buf…
berkshirehathaway.com/letters/1995.h…
40/🧵
In 1998, Berkshire acquired Executive Jet, marketer of fractional ownership in aircraft with 75% market share.
- Price $725 mln
- Sales $900 mln
- EBIT $98 mln (est)
- Net income $62 mln (est)
- P/E 11.7
- Int. rate 5.3%
berkshirehathaway.com/1998ar/1998ar.…
arena-attachments.s3.amazonaws.com/866910/37bb0e4…
In 1998, Berkshire acquired Executive Jet, marketer of fractional ownership in aircraft with 75% market share.
- Price $725 mln
- Sales $900 mln
- EBIT $98 mln (est)
- Net income $62 mln (est)
- P/E 11.7
- Int. rate 5.3%
berkshirehathaway.com/1998ar/1998ar.…
arena-attachments.s3.amazonaws.com/866910/37bb0e4…
41/🧵
In 1986, Scott & Fetzer, a conglomerate selling vacuum cleaners and Encyclopedias, among other things, joined Berkshire family.
- Price $315 mln, EV $410 mln
- Sales $677 mln
- EBIT $67 mln
- Net income $40
- EV/EBIT 6.1
- P/E 7.9
- Int. rate 7.7%
berkshirehathaway.com/letters/1986.h…
In 1986, Scott & Fetzer, a conglomerate selling vacuum cleaners and Encyclopedias, among other things, joined Berkshire family.
- Price $315 mln, EV $410 mln
- Sales $677 mln
- EBIT $67 mln
- Net income $40
- EV/EBIT 6.1
- P/E 7.9
- Int. rate 7.7%
berkshirehathaway.com/letters/1986.h…
42/🧵
In 1967, Buffett bought Omaha-based insurance company National Indemnity.
- Price paid $8.6 mln
- Tangible net worth $6.7 mln
- Float $19.4 mln
- Net income $1.4 mln ($0.4 mln avg last decade)
- P/E 6.1
- Int. rate 5.1%
enterprising-investor.com/national-indem…
fool.com/investing/2019…
In 1967, Buffett bought Omaha-based insurance company National Indemnity.
- Price paid $8.6 mln
- Tangible net worth $6.7 mln
- Float $19.4 mln
- Net income $1.4 mln ($0.4 mln avg last decade)
- P/E 6.1
- Int. rate 5.1%
enterprising-investor.com/national-indem…
fool.com/investing/2019…
43/🧵
Acquisition of reinsurer General Re in 1998 provided Buffett with a pool of investable capital.
- Price $22 bln (in $BRK stock)
- Float $14.9 bln
- Added investments $24 bln
- Net income $968 mln
- P/E 22.7
- Int.rate 5.3%
berkshirehathaway.com/news/jun1998.h…
berkshirehathaway.com/letters/final1…
Acquisition of reinsurer General Re in 1998 provided Buffett with a pool of investable capital.
- Price $22 bln (in $BRK stock)
- Float $14.9 bln
- Added investments $24 bln
- Net income $968 mln
- P/E 22.7
- Int.rate 5.3%
berkshirehathaway.com/news/jun1998.h…
berkshirehathaway.com/letters/final1…
44/🧵
In 1992, Buffett bought $312 mln (14.9%) of General Dynamics $GD, leader in marine and aerospace industries.
- Price $ 2.1 bln (EV $1.9 bln)
- Sales $8.8 bln
- EBIT $392 mln
- Net income $505 mln
- P/S 0.24
- EV/EBIT 4.8
- P/E 4.2
- Int. rate 7.0%
berkshirehathaway.com/letters/1992.h…
In 1992, Buffett bought $312 mln (14.9%) of General Dynamics $GD, leader in marine and aerospace industries.
- Price $ 2.1 bln (EV $1.9 bln)
- Sales $8.8 bln
- EBIT $392 mln
- Net income $505 mln
- P/S 0.24
- EV/EBIT 4.8
- P/E 4.2
- Int. rate 7.0%
berkshirehathaway.com/letters/1992.h…
45/🧵
Buffett added Clayton Homes, a manufactured-housing company, to Berkshire family in 2003.
- Price $1.7 bln
- Sales $1.2 bln
- EBIT $201 mln
- Net income $124 mln
- EV/EBIT 8.5
- P/E 13.7
- Interest rate 4.0%
berkshirehathaway.com/news/apr0103.p…
sec.report/Document/00007…
Buffett added Clayton Homes, a manufactured-housing company, to Berkshire family in 2003.
- Price $1.7 bln
- Sales $1.2 bln
- EBIT $201 mln
- Net income $124 mln
- EV/EBIT 8.5
- P/E 13.7
- Interest rate 4.0%
berkshirehathaway.com/news/apr0103.p…
sec.report/Document/00007…
46/🧵
The notorious Dexter Shoes was acquired by Berkshire in 1993.
- Price $420.5 mln (in $BRK stock)
- EBIT $36.4 mln (est)
- Net income $23.4 mln (est, 35% tax assumed)
- EV/EBIT 11.6
- P/E 18.0
- Interest rates 5.9%
berkshirehathaway.com/1995ar/1995ar.…
berkshirehathaway.com/letters/1993.h…
The notorious Dexter Shoes was acquired by Berkshire in 1993.
- Price $420.5 mln (in $BRK stock)
- EBIT $36.4 mln (est)
- Net income $23.4 mln (est, 35% tax assumed)
- EV/EBIT 11.6
- P/E 18.0
- Interest rates 5.9%
berkshirehathaway.com/1995ar/1995ar.…
berkshirehathaway.com/letters/1993.h…
47/🧵
Buffett first bought Blue Chip Stamps 1967-70, later (1983) merged into Berkshire.
- Price $40 mln
- Sales $132 mln
- Cash, securities $113 mln
- Float $86 mln
- EBIT $15 mln
- Net income $7 mln
- P/E 5.7
- Int. rates 7.3%
theoraclesclassroom.com/wp-content/upl…
gurufocus.com/news/543005/be…
Buffett first bought Blue Chip Stamps 1967-70, later (1983) merged into Berkshire.
- Price $40 mln
- Sales $132 mln
- Cash, securities $113 mln
- Float $86 mln
- EBIT $15 mln
- Net income $7 mln
- P/E 5.7
- Int. rates 7.3%
theoraclesclassroom.com/wp-content/upl…
gurufocus.com/news/543005/be…
48/🧵
In 1954, 24yo Buffett had arbitrage opportunity with Rockwood Cocoa Beans.
- shares traded at $34
- shares exchanged for $36 worth cocoa beans (80 lbs) for $2 arb/sh
- Buffett bought 222 shares, made eventually $13,000
berkshirehathaway.com/letters/1988.h…
gurufocus.com/news/1017023/a…
In 1954, 24yo Buffett had arbitrage opportunity with Rockwood Cocoa Beans.
- shares traded at $34
- shares exchanged for $36 worth cocoa beans (80 lbs) for $2 arb/sh
- Buffett bought 222 shares, made eventually $13,000
berkshirehathaway.com/letters/1988.h…
gurufocus.com/news/1017023/a…
49/🧵
In 1996, 4.3% of McDonald's $MCD spent brief time with Berkshire. "My decision to sell McDonald’s was a very big mistake"
- Price $29.4 bln
- Sales $9.8 bln
- EBIT $2.6 bln
- Net income $1.4 bln
- P/E 21
- Int. rates 6.4%
mcdonalds.com/content/dam/Ab…
berkshirehathaway.com/letters/1996.h…
In 1996, 4.3% of McDonald's $MCD spent brief time with Berkshire. "My decision to sell McDonald’s was a very big mistake"
- Price $29.4 bln
- Sales $9.8 bln
- EBIT $2.6 bln
- Net income $1.4 bln
- P/E 21
- Int. rates 6.4%
mcdonalds.com/content/dam/Ab…
berkshirehathaway.com/letters/1996.h…
50/🧵
In 1973, float from Blue Chip Stamps was used by Berkshire Hathaway to buy 80% of Wesco Financial.
- Price $31.2 mln ($25 mln for 80%)
- Investment income $28.1 mln
- Net income $4.3 mln
- P/E 7.3
- Int. rates 6.8%
theoraclesclassroom.com/wp-content/upl…
In 1973, float from Blue Chip Stamps was used by Berkshire Hathaway to buy 80% of Wesco Financial.
- Price $31.2 mln ($25 mln for 80%)
- Investment income $28.1 mln
- Net income $4.3 mln
- P/E 7.3
- Int. rates 6.8%
theoraclesclassroom.com/wp-content/upl…
51/🧵
In 2005, Berkshire Hathaway bought 5.6% of Anheuser Busch, major beer brewer 🍻 Skål!
- Price paid $38.1 bln
- Sales $14.9 bln
- EBIT $3.4 bln
- Net income $2.2 bln
- P/E 17.3
- Interest rates 4.3%
berkshirehathaway.com/letters/2005lt…
sec.report/Document/00010…
In 2005, Berkshire Hathaway bought 5.6% of Anheuser Busch, major beer brewer 🍻 Skål!
- Price paid $38.1 bln
- Sales $14.9 bln
- EBIT $3.4 bln
- Net income $2.2 bln
- P/E 17.3
- Interest rates 4.3%
berkshirehathaway.com/letters/2005lt…
sec.report/Document/00010…
52/🧵
In 1995, Berkshire Hathaway bought RC Willey Home Furnishings that accounted for over 50% of the furniture business in Utah.
- Price $175 mln
- Sales $257 mln
- Earnings $16 mln (estimate extrapolated from 6m results)
- P/E 11
- Int. rates 6.6%
berkshirehathaway.com/letters/1995.h…
In 1995, Berkshire Hathaway bought RC Willey Home Furnishings that accounted for over 50% of the furniture business in Utah.
- Price $175 mln
- Sales $257 mln
- Earnings $16 mln (estimate extrapolated from 6m results)
- P/E 11
- Int. rates 6.6%
berkshirehathaway.com/letters/1995.h…
53/🧵
In 1995, Berkshire Hathaway bought jeweler called Helzberg’s to be added to their Jewelry category.
- Price not disclosed
- Sales $282 mln
- Earnings $31 mln (assuming Tiffany’s net margin of ~11%)
- Interest rates 6.6%
berkshirehathaway.com/letters/1995.h…
netcials.com/financial-net-…
In 1995, Berkshire Hathaway bought jeweler called Helzberg’s to be added to their Jewelry category.
- Price not disclosed
- Sales $282 mln
- Earnings $31 mln (assuming Tiffany’s net margin of ~11%)
- Interest rates 6.6%
berkshirehathaway.com/letters/1995.h…
netcials.com/financial-net-…
54/🧵
In 2020, Berkshire Hathaway started aggressive share repurchases exceeding operating earnings (reaching annualized $29 bln in 3Q2021).
- Price (excl. 3Q2021 equity portfolio) ~$200 bln
- Net operating income (excl. inv. income) ~$20 bln
- P/E 10
- Interest rate 1.1%
In 2020, Berkshire Hathaway started aggressive share repurchases exceeding operating earnings (reaching annualized $29 bln in 3Q2021).
- Price (excl. 3Q2021 equity portfolio) ~$200 bln
- Net operating income (excl. inv. income) ~$20 bln
- P/E 10
- Interest rate 1.1%
55/🧵
In March 2022, Buffett bought insurance company Alleghany $Y after following the company for 60 years.
- Price $11.6 bln
- Equity $9.2 bln
- Float $13.1 bln
- Net income $1.1 bln
- P/E 10
- P/B 1.3
- P/float 0.9
- P/(Equity+ float) 0.5
- Interest rates 1.5%
In March 2022, Buffett bought insurance company Alleghany $Y after following the company for 60 years.
- Price $11.6 bln
- Equity $9.2 bln
- Float $13.1 bln
- Net income $1.1 bln
- P/E 10
- P/B 1.3
- P/float 0.9
- P/(Equity+ float) 0.5
- Interest rates 1.5%
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