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Hidden Value Gems
$BRK.A Q2 highlights:
✅ Buffett sells half of $AAPL stake, worth c $88B. Probably expects less upside in Apple and higher taxes in the future. Not sure a big strategic acquisition is on the cards…
✅ Cash pile at $277B, almost 30% of the Mkt Cap. A great position if we enter tough times.
✅ Insurance float at $169B.
✅ After-tax operating profit rose 15% to $11.6B, driven by higher insurance underwriting profits and increased income on the company’s large cash holdings.
✅ Bought back just $345M of stock in the period, one of the lowest quarterly totals in several years. That compares with $2.6B in Q1 2024 and $2.2B in Q4 2023.
✅ Book value per share rose to a record $419,000 per class A share from $398,000 on March 31, 2024. The gain in book value was driven by operating profits and the rise in value of Berkshire’s equity portfolio, which totaled $285B. Berkshire’s stock now trades for about 1.5x the book value.
✅ Geico’s combined ratio was 83% in the second quarter, down from 95% a year earlier.
✅ Profit at Burlington Northern Santa Fe, the railroad business, was down slightly to $1.2B after taxes in the second quarter from $1.3B a year earlier, and profit at Berkshire’s utility operations (Berkshire Hathaway Energy) declined to $655M from $785M a year earlier.
$BRK.A $BRK.B #BRK
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$BRK.A Q2 highlights:
✅ Buffett sells half of $AAPL stake, worth c $88B. Probably expects less upside in Apple and higher taxes in the future. Not sure a big strategic acquisition is on the cards…
✅ Cash pile at $277B, almost 30% of the Mkt Cap. A great position if we enter tough times.
✅ Insurance float at $169B.
✅ After-tax operating profit rose 15% to $11.6B, driven by higher insurance underwriting profits and increased income on the company’s large cash holdings.
✅ Bought back just $345M of stock in the period, one of the lowest quarterly totals in several years. That compares with $2.6B in Q1 2024 and $2.2B in Q4 2023.
✅ Book value per share rose to a record $419,000 per class A share from $398,000 on March 31, 2024. The gain in book value was driven by operating profits and the rise in value of Berkshire’s equity portfolio, which totaled $285B. Berkshire’s stock now trades for about 1.5x the book value.
✅ Geico’s combined ratio was 83% in the second quarter, down from 95% a year earlier.
✅ Profit at Burlington Northern Santa Fe, the railroad business, was down slightly to $1.2B after taxes in the second quarter from $1.3B a year earlier, and profit at Berkshire’s utility operations (Berkshire Hathaway Energy) declined to $655M from $785M a year earlier.
$BRK.A $BRK.B #BRK
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Finding Compounders
Michael Burry had bought Apple stock back in 1999, he called it a “ Buffett pick.”
Check this email he wrote. https://t.co/ww7oOxdAd3
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Michael Burry had bought Apple stock back in 1999, he called it a “ Buffett pick.”
Check this email he wrote. https://t.co/ww7oOxdAd3
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Hidden Value Gems
Interesting that back in the 1970s, Japanese trading companies were viewed as the best vehicle to get exposure to the rising Japanese market.
They have been a great vehicle this time again, with Buffett exploiting this perfectly. https://t.co/NG04D82Fpp
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Interesting that back in the 1970s, Japanese trading companies were viewed as the best vehicle to get exposure to the rising Japanese market.
They have been a great vehicle this time again, with Buffett exploiting this perfectly. https://t.co/NG04D82Fpp
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Invest In Assets 📈
RT @InvestInAssets: Francois Rochon has beaten the market for 30 years by investing in quality market leaders at a fair price.
Let’s break down his strategy:
Financial Strength
Rochon looks for companies with a consistent return on equity above 15%. The earnings per share of the business must grow by 10% annually, and the debt-to-profit ratio should be less than 4. This ensures:
·He picks high-quality companies (ROE <15%)<4)
business model
rochon looks for strong businesses that dominate their market, he wants to invest in the market leader with a deep and widening competitive advantage. in addition, he wants a business that is less susceptible to cyclicality. this ensures:
·he picks a proven business model (market leader)
·he picks a company that has something unique and hard to replicate (competitive advantage)
·he picks companies that have stable earnings over long time periods (low cyclicality)
management team
rochon looks for companies where insiders own a lot of the shares. he looks for competent management that makes constructive acquisitions to increase the quality of the business, not to inflate their ego. in addition, he looks for managers that are good capital allocators. this ensures:
·he picks management with skin in the game (insider ownership)
·he picks competent management (constructive acquisitions)
·he picks a high return on invested capital business (good capital allocators)
market valuation
rochon uses a simple valuation method to determine what a company should be worth in 5 years. he tries to purchase the business at half the estimated value in 5 years to achieve a hurdle rate of 15%. i made a free document detailing this process here, comment “value” below and i will dm you the document.
the approach entails:
· rochon only invests in these great businesses when they are attractive in price
· he gets a great risk-adjusted return
· he sometimes misses some great opportunities
rochon’s holdings:
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RT @InvestInAssets: Francois Rochon has beaten the market for 30 years by investing in quality market leaders at a fair price.
Let’s break down his strategy:
Financial Strength
Rochon looks for companies with a consistent return on equity above 15%. The earnings per share of the business must grow by 10% annually, and the debt-to-profit ratio should be less than 4. This ensures:
·He picks high-quality companies (ROE <15%)<4)
business model
rochon looks for strong businesses that dominate their market, he wants to invest in the market leader with a deep and widening competitive advantage. in addition, he wants a business that is less susceptible to cyclicality. this ensures:
·he picks a proven business model (market leader)
·he picks a company that has something unique and hard to replicate (competitive advantage)
·he picks companies that have stable earnings over long time periods (low cyclicality)
management team
rochon looks for companies where insiders own a lot of the shares. he looks for competent management that makes constructive acquisitions to increase the quality of the business, not to inflate their ego. in addition, he looks for managers that are good capital allocators. this ensures:
·he picks management with skin in the game (insider ownership)
·he picks competent management (constructive acquisitions)
·he picks a high return on invested capital business (good capital allocators)
market valuation
rochon uses a simple valuation method to determine what a company should be worth in 5 years. he tries to purchase the business at half the estimated value in 5 years to achieve a hurdle rate of 15%. i made a free document detailing this process here, comment “value” below and i will dm you the document.
the approach entails:
· rochon only invests in these great businesses when they are attractive in price
· he gets a great risk-adjusted return
· he sometimes misses some great opportunities
rochon’s holdings:
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App Economy Insights
$BRK Berkshire Hathaway Q2 FY24.
• Stock repurchase $0.3B.
• $AAPL stake cut by nearly half.
• Segment margin 14% (+2pp Y/Y).
• Cash and short-term securities $277B. https://t.co/AF7uc8I0Ef
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$BRK Berkshire Hathaway Q2 FY24.
• Stock repurchase $0.3B.
• $AAPL stake cut by nearly half.
• Segment margin 14% (+2pp Y/Y).
• Cash and short-term securities $277B. https://t.co/AF7uc8I0Ef
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Offshore
GIF
App Economy Insights
📊 This Week in Visuals: $AAPL $META $MA $PG $MRK $AMD $TMUS $QCOM $MCD $PFE $ARM $INTC $BKNG $LRCX $BA $ANET $SBUX $MELI $RACE $MAR $PYPL $COIN $TEAM $KHC $EA $SQ $PINS $SNAP $MTCH $PAYC $ROKU $SOFI $ETSY $TDOC
Get up to speed with the latest earnings👇
https://t.co/HtpESO4R4N https://t.co/A8Kn9VBMid
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📊 This Week in Visuals: $AAPL $META $MA $PG $MRK $AMD $TMUS $QCOM $MCD $PFE $ARM $INTC $BKNG $LRCX $BA $ANET $SBUX $MELI $RACE $MAR $PYPL $COIN $TEAM $KHC $EA $SQ $PINS $SNAP $MTCH $PAYC $ROKU $SOFI $ETSY $TDOC
Get up to speed with the latest earnings👇
https://t.co/HtpESO4R4N https://t.co/A8Kn9VBMid
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App Economy Insights
What are you watching this week?
• Monday: $PLTR.
• Tuesday: $UBER, $ABNB, $RDDT, $AMGN, $YUM, $CPNG.
• Wednesday: $NVO, $DIS, $SHOP, $HOOD, $HUBS, $SONY, $WBD.
• Thursday: $LLY, $TTD, $DDOG, $PARA, $TTWO, $EXPE.
All visualized in our PRO coverage next Saturday. https://t.co/TudNEiRUk6
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What are you watching this week?
• Monday: $PLTR.
• Tuesday: $UBER, $ABNB, $RDDT, $AMGN, $YUM, $CPNG.
• Wednesday: $NVO, $DIS, $SHOP, $HOOD, $HUBS, $SONY, $WBD.
• Thursday: $LLY, $TTD, $DDOG, $PARA, $TTWO, $EXPE.
All visualized in our PRO coverage next Saturday. https://t.co/TudNEiRUk6
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Hidden Value Gems
RT @trengriffin: Clayton Christensen on Boeing:
"Reducing assets is much easier than increasing revenue. So if a CEO is rewarded for a good RONA ratio, the incentive is to outsource aggressively."
https://t.co/KP0yMovPjV
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RT @trengriffin: Clayton Christensen on Boeing:
"Reducing assets is much easier than increasing revenue. So if a CEO is rewarded for a good RONA ratio, the incentive is to outsource aggressively."
https://t.co/KP0yMovPjV
Who manufactures the Remote Control System (RCS) on the Starliner? Boeing or a subcontractor?
"The leak is located in one Aerojet Rocketdyne reaction control system (RCS) thruster that is located in a single 'doghouse.'" https://t.co/PGZsVStyxO https://t.co/rV2hobYoch tweet
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Invest In Assets 📈
Warren Buffett sells almost 50% of his Apple stake $AAPL: https://t.co/G79NJHb2cz
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Warren Buffett sells almost 50% of his Apple stake $AAPL: https://t.co/G79NJHb2cz
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