Posted on 05/04/2020 8:19:06 AM PDT by MeneMeneTekelUpharsin
Did that too.
PDCE, bought at $5.01, currently at $10.96.
Has cash reserves to cover through 2023.
I wish John Templeton were around to provide some of his guidance.
https://www.youtube.com/watch?v=XFn1G2goDQw
https://www.youtube.com/watch?v=Lm_4j-_Dnwc
https://www.youtube.com/watch?v=o_fxEoF8Vl8&t=224s
Perhaps a weakness inside the Berkshire series of companies has been exposed. It was considered a well diversified business but, perhaps, too much of it relies on a functioning economy. LOL.
I say that facetiously but what I mean is, he owns railroads but rail freight is way down. He owns candy and food companies (See’s and Dairy Queen) but they are partially closed. He owns insurance companies, they may be losing premium income or facing payouts. He owns tool & die companies but those only work when factories are open to buy tools and dies. He owns netjets, maybe safer than flying commercial but I can’t imagine he’s selling a lot of private flights. He owns Fruit of the Loom, perhaps we can all use some new underwear about now but no place to buy them. I think he has interests in real estate, and frankly that’s going to take a beating at some point as many renters can’t pay their bills (commercial, retail, industrial, residential). Personally I’m thinking of trying to renegotiate my business lease by telling the landlord if he can find another tenant I’ll move to Reno.
He took $50 billion loss/right-down this last quarter. That’s a huge bite. They do have a huge hoard of cash though... like $150 billion in cash. He might make an acquisition at some point. Assuming that cash is not sitting in state and municipal bonds which are surely going to have some pain.
LOL! The Oracle is a good investor but he also has lots of advantages over the rest of us. He also got stuck in his old school niche and missed a lot of opportunitites over the last ten or so years. I think he would probably admit that.
He’s from Omaha.
There is definitely going to be a shakeout in the industry. The question is, how many airlines will still be standing when this is over?
Let’s say that we are in a worst crisis in many decades but Berkshire still costs three times as much as its 2008-2009 lows.
I got some AMC in the $2s. Sold it for a 50% gain. It’s now up ~100% on news of a new cash infusion. Don’t want to hold much. I think the virus thing will blow over by end of summer but no predicting how people, politics and business will change on the other side.
A stock I kinda like is BHC. They got some troubles, borrowed too much buying up companies...but they may be able to refinance some of their debt at much better rates. And Bausch & Lomb is a cash cow. Their proprietary drugs, however, not so hot and eventually run out of patent protection.
Nice comment.
What is an airline, really? It’s a fleet of jets, some booking software, some demand and route analysis, and some airports. They can merge. All airlines need planes. They can integrate routes and software.
AFAIK you cannot invest in airports. If you could, those would be the ones to short.
My wild hair choice was Party City. They were troubled before and way off their high. We hold over 1100 shares at about $.54. If they can pull through and go up a couple bucks we’ll do well. If they collapse were not out a vast amount of money
Omaha, topeka — whatever-— we ain’t in Kansas anymore, Toto.
Oz on steroids. His chi-com pals and his “strategy” is Welch/GE in its “brilliance”.
No offense to Kansas FReepers. Him and Gates-— remind me of each other, different aged weasels. But put him, Gates, Soros together... and, well too many memes to convey.
Reference to William Randolph Hearst (reminding me of Buffett in temperament- Buffetts love of the Marxist obamaumao serving his needs) is from the days when Hearst got the US into a war on completely false (but expansionist) pretexts against Spain. The Maine.
Another example: Hearst and his logging barons/paper baron cronies destroying the hemp paper business because hemp paper was cheaper and supplying small competitors who were a threat. So— he jumped in to the Marijuana narcotic wagon, and lumped non-psychoactive Hemp with negro jazzmen, and the potential rape of white (progressive, of course) women. Voila- his small competitor newspapers could not afford to stay in business, there being no more hemp paper. The law created by Hearst’s congress cronies so tightly that special waivers had to be created for Hemp to be grown for hawsers, and other items for WWII. A waiver— which was vacated after the war! Back to— it’s all Pot... etc. Truly an amazing story. Stray thoughts coffee powered on a break.
Thanks for correcting. BTW best BBQ in the West is in Kansas-— Texas friends really get ticked when they hear this.
Maybe ten years from now, we’ll have “Amazon Airlines”.
lol. Yeah, may actually happen.
When did you get those holdings? Buffet’s move made me consider buying an airline stock sometime.
"Buckle your seatbelt, Dorothy, 'cause Kansas is going bye bye!"
Will always remember Sir John Templeton. One nugget of gold, buy when there is blood on the street.
I like Black Stone Minerals (BSM). Pays a dividend of .32 per year for a 5.58% yield and they just cut the dividend to .08 cents from .32 cents, so it should be stable for a long time. Very little debt and great P&E. We’ll see.
I don't know how playing the market can not drive a person crazy and stressed. I wish I could do it but do not have the emotional stamina. That's also why I don't bet sports anymore.
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