Berkshire Hathaway Inc (BRK.B)

[bar1080]

Yep GFP. seen that video. It's one reason my son and I own rail shares.

[gfp927z]

More on OXY - >>> Warren Buffett's $13 billion bet on Occidental Petroleum turns sour as oil prices hit a 3-year low


Business Insider

by Matthew Fox

September 12, 2024


https://finance.yahoo.com/news/warren-buffetts-13-billion-bet-235939676.html


Occidental Petroleum shares have dropped 29% since mid-April, impacting Warren Buffett's stake in the company.

The decline aligns with a 23% drop in crude oil prices on concerns about demand and excess supply.

Berkshire Hathaway's $13 billion stake in Occidental Petroleum may be underwater, based on estimates.

A steady decline in oil prices this year has led to one of Warren Buffett's big stock bets to turn sour.

Shares of Occidental Petroleum have plunged 29% since mid-April and are down 15% year-to-date, trading just above the $50 level on Thursday at 10:04 a.m.

The price decline in Occidental shares has coincided with a 23% decline in crude oil prices since mid-April.

Oil has been under pressure due to demand concerns tied to a cooling US economy and excess supply thanks to record production by US oil firms.

The sharp decline in Occidental Petroleum stock is a blow to Warren Buffett's Berkshire Hathaway, which has been amassing a stake in the oil producer since early 2022.

Buffett went on a buying streak of Occidental Petroleum in June, purchasing millions of shares around the $60 level. The conglomerate owns a 29% stake in the oil company, worth about $13 billion.

The $55-$60 level has acted as a floor for Occidental Petroleum stock since Buffett started buying it in 2022, but for the first time in more than two years, that floor has been taken out.

The hedge fund tracking website HedgeFollowe estimates that Berkshire Hathaway paid an average price of $51.22 for its stake, which is about 1% above the stock's current price.

To be clear, the average price Berkshire Hathaway paid for its Occidental Petroleum stake is only known by Berkshire Hathaway itself.

Another sign that Berkshire Hathaway's Occidental Petroleum bet is souring is based on the warrants it owns to purchase additional shares.

Chris Bloomstran, fund manager of Semper Augustus and longtime investor in Berkshire Hathaway, told Business Insider that Buffett owns warrants to buy another 83.5 million shares of Occidental Petroleum at a strike price of $59.62, which is nearly 20% above the current price.

As to whether Buffett will take advantage of the recent dip in Occidental Petroleum shares and buy, it's possible, according to Bloomstran, but he won't take over the company.

"I wouldn't rule out a purchase of additional shares," Bloomstran said, highlighting that the conglomerate has plenty of "firepower" given its recent sales of Apple and Bank of America stock.

"Warren has said he won't buy the whole company and I don't think he'll change his mind on that," Bloomstran added.

Buffett likely wants to see Occidental Petroleum initiate a stock buyback program of its shares, according to Bloomstran, but Occidental CEO, Vicki Hollub, said the company wouldn't do that until it's paid down a big chunk of its outstanding debt.

On Occidental Petroleum's latest earnings call, Hollub said the firms wants to pay down its debt to $15 billion before initiating a stock buyback, which could be "doable by the end of 2026 or first of 2027."

<<<



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[gfp927z]

OXY is now below 50, so I wonder if Buffett is still adding to his large position?


>>> Oil Prices Are Falling. Here's Why That's Becoming Less of a Concern for Occidental Petroleum.


by Matt DiLallo

Motley Fool

October 30, 2024


https://finance.yahoo.com/news/oil-prices-falling-heres-why-091400527.html


Occidental Petroleum (NYSE: OXY) is one of the country's largest oil and gas producers. It recently increased its exposure to the oil market by acquiring CrownRock in a $12 billion deal. That acquisition will add $1 billion to the company's annual free cash flow, assuming oil prices average around $70 a barrel. Unfortunately for Occidental, crude prices have recently slumped below that level.

While lower oil prices will affect the company's cash flow in the near term, they'll have less of an effect on its earnings in the future. Here's what's driving its reduced reliance on oil and gas to fuel its results.

Drilling down into how Occidental Petroleum makes money

Occidental Petroleum is a more diversified energy company than many of its peers in the oil patch. In addition to producing oil and gas, Occidental has a chemicals business, called OxyChem, and a midstream and marketing segment. However, the company currently makes most of its money from oil and gas production. For example, Occidental's oil and gas segment produced $1.6 billion of pre-tax income during the second quarter. For comparison, OxyChem's earnings were $296 million, and its midstream and marketing segment's earnings were $116 million.

Higher oil prices helped boost Occidental's earnings during the second quarter. Pre-tax earnings from the oil and gas segment were up $400 million compared to the first quarter, thanks to a 5% improvement in oil prices. The company also got a boost from higher oil and gas production, which exceeded the midpoint of its guidance.

However, oil prices have fallen sharply over the past few months. Crude was recently under $70 a barrel, well below the nearly $80 average it captured during the second quarter. Now the company's earnings and cash flow are likely to decline in the second half of this year.

The path to $1 billion (and beyond)

Occidental is working to mute the impact of oil price volatility by increasing its free cash flow from non-oil components. The company has a clear line of sight to add more than $1 billion of incremental annual free cash flow by the second half of 2026 from areas beyond oil and gas.

For example, its investment in Western Midstream Partners (NYSE: WES) could supply $240 million of incremental cash flow by 2027 as the master limited partnership (MLP) increases its distribution. Western Midstream recently provided investors with a monster raise of 52%, driven by acquisitions, asset sales to strengthen its balance sheet, and organic expansion projects. As the largest investor in the MLP, Occidental receives the lion's share of its lucrative and growing distribution payments.

In addition, Occidental Petroleum is repaying debt as it matures. The company expects to retire $3.7 billion of debt through 2026, which will reduce interest expenses by $180 million. Meanwhile, the company's midstream business has several high-cost contracts nearing expiration. As they expire, they should save the company about $400 million by 2027. Finally, OxyChem is investing heavily in plant enhancements and the modernization and expansion of its Battleground complex. These investments should add about $325 million to its free cash flow total by 2027.

On top of all that, Occidental is building out a carbon capture and storage business (CCS). It's currently constructing the STRATOS project, the world's largest direct air capture (DAC) facility, to extract carbon dioxide from the atmosphere. It expects to complete the project by the middle of next year. The company is commercializing STRATOS by selling carbon credits to customers desiring to offset their emissions. Occidental has several other DAC projects under development. In addition, it's working to develop sequestration hubs to permanently store carbon dioxide. Occidental believes it can eventually make as much money from CCS as it currently does from producing oil and gas.

Growing less reliant on oil

Crude prices are the main factor fueling Occidental's earnings these days. However, oil won't have as much of an impact on the company's earnings in the future. It has a visible path to add an incremental $1 billion to its free cash flow from non-oil sources by the second half of 2026. In addition, it's building out a CCS platform that could be a major future contributor. These catalysts will help reduce the volatility of the company's earnings in the future, which should make it a less risky oil stock.

<<<



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[gfp927z]

Bar, Buffett talks about the attraction of the railroad business (below) -

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[bar1080]

"Profit also rose at the BNSF railroad, which shipped more consumer goods." CPA son is doing well with the Union Pacific shares he's held for several years.

"Union Pacific RR Q Divs

Aug 30, 2024 1.34 Dividend
May 31, 2024 1.30 Dividend
Feb 28, 2024 1.30 Dividend
Dec 7, 2023 1.30 Dividend
Aug 30, 2023 1.30 Dividend
May 30, 2023 1.30 Dividend
Feb 27, 2023 1.30 Dividend
Dec 16, 2022 1.30 Dividend
Aug 30, 2022 1.30 Dividend
May 27, 2022 1.30 Dividend
Feb 25, 2022 1.18 Dividend
Dec 17, 2021 1.18 Dividend
Aug 30, 2021 1.07 Dividend
May 27, 2021 1.07 Dividend
Feb 25, 2021 0.97 Dividend"

[gfp927z]

>>> Berkshire's cash soars to $325 billion, Buffett sells Apple, Bank of America


Reuters

By Jonathan Stempel

November 2, 2024


https://www.reuters.com/markets/us/berkshires-cash-sets-record-buffett-sells-apple-bofa-operating-profit-falls-2024-11-02/


Operating profit falls 6%, no stock buybacks

Net income tops $26 billion on investment gains

More than 600 million Apple shares sold in 2024


Nov 2 (Reuters) - Warren Buffett and Berkshire Hathaway (BRKa), opens new tab extended their retreat from stocks in the third quarter, further slashing holdings in Apple (AAPL), opens new tab and boosting cash to a record $325.2 billion.

In its quarterly report on Saturday, Berkshire said it sold about 100 million, or 25%, of its Apple shares over the summer, ending with about 300 million.

Berkshire has now sold more than 600 million of the iPhone maker's shares in 2024, though Apple remained its largest stock holding, at $69.9 billion.

It sold $36.1 billion of stock overall, including several billion dollars of Bank of America (BAC), opens new tab shares, and bought just $1.5 billion.

That made the quarter the eighth straight where Berkshire was a net seller of stocks.

The Omaha, Nebraska-based conglomerate also conducted no stock buybacks for the first time since the second quarter of 2018, and did not repurchase stock in the first three weeks of October.

"Berkshire is a microcosm of the broader economy," said Cathy Seifert, an analyst at CFRA Research in New York. "Its hoarding cash suggests a 'risk-off' mindset, and investors may worry what it means for the economy and markets."

The Class A shares of Berkshire are up 25% this year, while the Standard & Poor's 500 has risen 20%.

Rising valuations have fueled concerns among some investors that many stocks have become too expensive.

Berkshire's cash stake grew from $276.9 billion at the end of June, and is more than 10 times the $30 billion cushion that Buffett has pledged to maintain.

Buffett has made no major acquisitions of whole companies for his $975 billion company since 2016.

Jim Shanahan, an analyst at Edward Jones in St. Louis, said the swelling cash hoard "begs questions about whether Buffett thinks stocks are overvalued or an economic downturn is coming, or is trying to build cash for a big acquisition."

In May, Buffett said he expected Apple to remain Berkshire's largest stock investment, but selling made sense because the 21% federal tax rate on gains would likely grow.

OPERATING PROFIT FALLS

Berkshire's quarterly operating profit declined 6% to $10.09 billion, or about $7,019 per Class A share, missing analyst estimates of $7,611 per share according to LSEG IBES.

The decline stemmed largely from underwriting losses on older insurance policies, insurance claims related to Hurricane Helene in September, and currency losses from a strengthening U.S. dollar.

These offset improved profitability at the Geico car insurer, where accident claims fell. Profit also rose at the BNSF railroad, which shipped more consumer goods, and Berkshire Hathaway Energy, where operating expenses declined.

Seifert said Berkshire has long benefited from its diversification but suffered "multi-pronged" weakness in the quarter.

This included a 19% revenue decline at the Pilot truck stop chain, where fuel prices and marketing volumes fell. Berkshire also said "almost all" of its retail businesses, including its more than 80 car dealerships, are seeing revenue declines.

Net income totaled $26.25 billion, compared with a year-earlier $12.77 billion loss, reflecting unrealized gains and losses in stock investments such as Apple.

This adds volatility to net results that Buffett urges investors to ignore, and instead focus on operating performance.

HELENE, MILTON

Profit from insurance underwriting fell 69%, dented by losses from older policies, $565 million from Helene, and a bankruptcy settlement tied to a defunct talc supplier. This more than offset a 93% jump in Geico's underwriting profit.

Shanahan called the policy losses a "big surprise," while Seifert said many of Berkshire's peers have already addressed similar issues. "This stands out by making Berkshire appear to be a laggard," she said.

Berkshire also projected $1.3 billion to $1.5 billion of pre-tax losses in the fourth quarter from Hurricane Milton, which slammed into Florida in October.

Investment income at Berkshire's insurance businesses, which hold much of Berkshire's cash, rose 48% to $3.66 billion.

Such gains should decline if the Federal Reserve continues lowering interest rates, or Buffett finds something big worth buying.

Buffett "wants to invest every penny he can in businesses that provide Berkshire an advantage. But at the same time he's willing to do nothing," said Tom Russo, a principal at Gardner Russo & Quinn in Lancaster, Pennsylvania, who has invested in Berkshire since 1982.

"He'll be there ready and loaded when other investors are despairing or capital-constrained," Russo added.

Berkshire's operations also include many industrial and manufacturing companies, a big real estate brokerage, and retail businesses such as Dairy Queen and Fruit of the Loom.

On Oct. 31, Berkshire finished purchasing the 8% of Berkshire Hathaway Energy it did not already own.

Buffett, 94, has led Berkshire since 1965. He is expected to eventually transfer leadership to Vice Chairman Greg Abel, 62.

<<<



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[BullNBear52]

For someone who claims he likes dividend paying stocks his company doesn't pay them.

[bar1080]

"What does Warren Buffett see here????"

Market and targets are too costly in his opinion?

Or Buffett has his eyes on buying something else? How about buying out all of Apple??? Not likely. Any thoughts?

[Bountiful_Harvest]

Berkshire Hathaway just announced that they are FREEZING buybacks and holding $325 BILLION of cash.

@KobeissiLetter
This is insane:

Warren Buffett is now building his cash balance at an unprecedented rate, even as the market hits new records.

Berkshire Hathaway just announced that they are FREEZING buybacks and holding $325 BILLION of cash.

What does Warren Buffett see here?

[Prudent Capitalist]

Tomorrow's BRK earnings release will shed a lot of additional light on things here bar, including any additional share sales, cash position, buybacks, etc.

[Prudent Capitalist]

Meet America's Newest $1 Trillion Company. Warren Buffett Has Spent $77.8 Billion Buying Its Stock Since 2018

https://www.msn.com/en-us/money/topstocks/meet-america-s-newest-1-trillion-company-warren-buffett-has-spent-77-8-billion-buying-its-stock-since-2018/ar-AA1sPTie?ocid=BingNewsSerp

[bar1080]

"Buffett warns of ‘casino-like’ investor behavior. Here’s the hidden cost of ‘free’ investing"

"The landscape of investing has undergone a seismic shift, with the advent of commission-free trading and low-cost ETFs. While this has empowered retail investors, it has also introduced new challenges. Fees have been significantly reduced, but investors now face less visible but equally harmful costs associated with increased risk."

"Buffett’s warning
In today's "free" investing world, many in the finance industry seem bent on distracting investors from this goal. Investors who have not (yet) embraced broad market indexing are being encouraged to trade more actively and take more risk. As Warren Buffett observed, “markets now exhibit far more casino-like behavior than they did when I was young. The casino now resides in many homes and daily tempts the occupants.”"

"This casino-fication of markets can be seen in the explosion of stock options trading volumes, particularly in lottery-like zero-day-to-expiration options, and the glorification of day-trading on online trading platforms that are almost indistinguishable from online gambling sites. All sorts of leveraged, concentrated, and options-based ETFs have come to market, and have attracted hundreds of billions of dollars in short order."

"Double-whammy for active investors
Unfortunately, the bad news for ordinary investors doesn’t stop here. When retail investors take on extra risk, the market participants taking the other side of their active bets are also, on average, taking extra risk. These professional trading firms need to make extra returns to compensate them for the extra risk they’re taking, and the only place that can come from is the pockets of active retail traders. This is a double whammy for active investors—they need to get extra return for the extra risk they take, but instead they wind up with a lower return, because other market participants higher up in the food chain are making extra returns at their expense. While the payment of fees can be thought of as a zero-sum transfer in that one party pays a fee and the other party receives the fee, the cost of taking extra risk is a negative sum phenomenon across all parties.

While the allure of "free" investing is strong, the “risk matters hypothesis” reminds investors to be cautious about the risk associated with deviating from the market. In most cases, the best bet may be to stick with broadly diversified index funds."

This story was originally featured on Fortune.com

[BullNBear52]

This is the kind of company Warren loves. In distress and looking for a white knight to lend it money in exchange for warrants or preferred.

Aerospace & Defense
Boeing to raise as much as $25 billion to shore up balance sheet
Published Tue, Oct 15 20247:36 AM EDTUpdated 2 Hours Ago
thumbnail
Leslie Josephs

Key Points
Boeing said it could raise as much as $25 billion to bolster its balance sheet.
The company said in a separate filing that it has reached a $10 billion credit agreement with banks.
Boeing faces warnings from credit ratings agencies that it could lose its investment-grade rating.

https://www.cnbc.com/2024/10/15/boeing-equity-debt-raise.html

[BullNBear52]

Not sure of the logic behind that trade. But then again I don't have $4.6M to gamble.

[DiscoverGold]

$BRK.B Large $4.6M ITM Call
By: Cheddar Flow | October 15, 2024

• $BRK.B Large $4.6 Million ITM Call

This is an opening order (Vol>OI) for the March expiration.



Read Full Story »»»

DiscoverGold

[DiscoverGold]

Warren Buffett Insider Trading Alert: Warren Buffett's Berkshire Hathaway just purchased $87 million worth of $SIRI shares
By: Barchart | October 13, 2024

• Warren Buffett's Berkshire Hathaway just purchased $87 million worth of $SIRI shares.



Read Full Story »»»

DiscoverGold

[DiscoverGold]

Warren Buffett has dumped 100 MILLION shares of Bank of America since September, dropping his stake to 9.99%, just below the 10% ownership threshold
By: TrendSpider | October 13, 2024

• Warren Buffett has dumped 100 MILLION shares of Bank of America since September, dropping his stake to 9.99%, just below the 10% ownership threshold.

With the bank set to report earnings this Tuesday, is Buffett's move a signal that he knows something we don’t?



Read Full Story »»»

DiscoverGold

[BullNBear52]

Yes she owns CAT and DE.
https://cathiesark.com/ark-funds-combined/complete-holdings

Since then Cathie Wood bought shares ten more times and sold shares on fifteen occasions.


Both have been money winners for me. I bought them right after the Infrastructure Bill passed. Turn on the news and their construction equipment is all over the globe. I haven't traded it once and the divys get reinvested.

[bar1080]

Is that right??? ARK owns CAT and even John Deere? DE ranks at #12 for her now.

"Cathie Wood acquired 88.1 Thousand Deere shares worth $35.8 Million. That's 0.30% of their equity portfolio (53rd largest holding). The first Deere trade was made in Q3 2017. Since then Cathie Wood bought shares ten more times and sold shares on fifteen occasions. The stake costed the investor $22.1 Million, netting the investor a gain of 62% so far."

[bar1080]

The BRK Portfolio Tracker updated as of a few MONTHs ago. His five Japanese holdings have stood out.

https://www.cnbc.com/berkshire-hathaway-portfolio/

[BullNBear52]

Chatty Cathy from ARK owns them as well. Buffett was an initial investor before the IPO. I can see how digital banking works in SA but so does fraud. lol. I need to dig a little deeper before I take a flyer on them.

[bar1080]

NU is a tiny BRK holding but Buffett does seem to have a fondness for Latin American investments.

[bar1080]

"Nubank is a Brazilian neobank headquartered in São Paulo, Brazil. It is the largest fintech bank in Latin America, with around 93 million customers in Brazil and 8 million between Mexico and Colombia and a revenue of $1.69B. At its IPO in December 2021, Nubank was valued at $45 billion. Wikipedia"

[BullNBear52]

He found another bank.

Nu Holdings Ltd. (NU): Warren Buffett’s Best Stock Performer of 2024
Neha Gupta
September 26, 2024 7 min read

https://finance.yahoo.com/news/nu-holdings-ltd-nu-warren-135408974.html

They talked about it on CNBC this morning. It's mainly an internet bank with very little brick and mortar.

[DiscoverGold]

Warren Buffett and Berkshire Hathaway $BRK.B just filed for its sale of more Bank of America $BAC shares
By: Evan | October 10, 2024

• Warren Buffett and Berkshire Hathaway $BRK.B just filed for its sale of more Bank of America $BAC shares



Read Full Story »»»

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[DiscoverGold]

Berkshire Hathaway - Bet on Buffett in H1 2025?
By: TrendSpider | October 9, 2024

• Bet on Buffett in H1 2025? $BRK.A

Berkshire Hathaway has a strong track record of performance in the first half of the year following elections.

This is likely driven by investors seeking stability and value during transitional periods.



Read Full Story »»»

DiscoverGold

[DiscoverGold]

Warren Buffett and Berkshire Hathaway $BRK.B just filed for its sale of more Bank of America $BAC stock bringing its total share sales since mid July up to more than $10 Billion
By: Evan | October 8, 2024

• WARREN BUFFETT HAS NOW SOLD $10B+ OF BANK OF AMERICA

Warren Buffett and Berkshire Hathaway $BRK.B just filed for its sale of more Bank of America $BAC stock bringing its total share sales since mid July up to more than $10 Billion



Read Full Story »»»

DiscoverGold

[gfp927z]

OXY / carbon capture - >>> Big Oil Urges Trump Not to Gut Biden’s Climate Law


The Wall Street Journal

by Collin Eaton, Benoît Morenne

10-6-24


https://www.msn.com/en-us/news/politics/big-oil-urges-trump-not-to-gut-biden-s-climate-law/ar-AA1rLuX7?cvid=54bdd711ae1748c1fe427f19366b02e2&ei=41


Oil companies are conveying an unlikely message to the GOP and its presidential candidate: Spare President Biden’s signature climate law. At least the parts that benefit the oil industry.

In discussions with former President Trump’s campaign and his allies in Congress, oil giants including Exxon Mobil, Phillips 66 and Occidental Petroleum have extolled the benefits of the Inflation Reduction Act. Many in the fossil-fuel industry opposed the law when it passed in 2022 but have come to love provisions that earmark billions of dollars for low-carbon energy projects they are betting on.

Some executives in the largely pro-Trump oil industry are worried the former president, if re-elected, would side with conservative lawmakers who want to gut the IRA. They fear losing tax credits vital for their investments in renewable fuel, carbon capture and hydrogen, costly technologies requiring U.S. support to survive their early years.

At a Houston fundraiser for Trump in May, Occidental CEO Vicki Hollub took her case directly to the candidate, saying tax credits propping up the company’s huge investments in technology to collect carbon directly from the air should be preserved, people familiar with the matter said. The company is building its first $1.3 billion direct-air capture plant in West Texas and aims to erect dozens more in the coming years.

Exxon has also told the Trump campaign it wants to preserve portions of the IRA. It and Chevron, the two largest U.S. oil companies, have promised to pump more than $30 billion combined into carbon capture, hydrogen, biofuels and other low-carbon technologies, virtually all of which rely on tax credits in the IRA to be viable.

Meanwhile, company officials at Phillips 66, a $58 billion U.S. oil refiner, have told members of Congress the IRA’s tax credits are important for its business, people familiar with the matter said. Instead of crude oil, the company’s renewable fuels are made from used cooking oil, vegetable oil, fats and the like, which qualify it for large tax credits.

“There are elements of the IRA that the general industry says would be bad to unwind,” Mark Lashier, CEO of Phillips 66, said in an interview last month. “Everybody is working out their contingency plans for either administration.”

Green politics

Trump has called Biden’s climate efforts the “Green New Scam” and last month promised to cut unspent IRA funds. With the backing of influential conservative think tanks, Republicans in Congress have tried to repeal the law and provisions in it dozens of times and are expected to push for cuts again next year during the legislature’s budget reconciliation.

Oil billionaires are some of Trump’s biggest backers, and the candidate has privately promised to deliver on many of the policies on their wish lists if elected.

Trump hasn’t fleshed out his plans for the climate law.

Energy policy has emerged as a key campaign issue. Trump has attacked Vice President Kamala Harris’s support for a fracking ban when she was a presidential candidate in 2019, a policy she has since backtracked on.

During the presidential debate in September, Harris touted her support for the IRA, which she said had kindled clean-energy investment but also spurred the record oil production levels reached during the Biden administration. If elected, she has promised to back investment in diverse energy sources.

Some oil lobbyists have told Trump’s campaign the industry’s IRA-backed projects will be a boon to U.S. jobs and manufacturing as major oil companies invest billions.

Karoline Leavitt, a spokeswoman for the Trump campaign, said Trump’s policies turned the U.S. into a net exporter of energy.

“He cut red tape and gave the industry more freedom to do what they do best—utilize the liquid gold under our feet to produce clean energy for America and the world,” she said.

Political strategists said Trump may try to rebrand the law, given the support for it among officials and companies in some Republican-leaning states, such as Oklahoma and South Carolina, who see it as a draw for new investments and jobs.

“If we win, we need to take a scalpel, not an ax, to the IRA,” said Sen. Kevin Cramer (R., N.D.). North Dakota is well-known for its booming oil fields in the Bakken Shale. Oil companies there aim to inject industrial carbon dioxide into the ground to recover more crude, which would also make them eligible for carbon-capture subsidies.

The industry’s support for the IRA only extends so far. Many oppose tax credits for renewable energy and purchasing electric vehicles, saying those incentives undermine competition with gas- and diesel-powered vehicles. Smaller frackers, which aren’t investing in low-carbon technologies, mostly dislike the entirety of the law.

In recent months, Biden’s administration has signaled it is rushing to fund clean-energy projects from a $400 billion lending program created by the IRA. A second Trump administration might slow-walk spending by federal agencies meant to support those projects, said Gordon Huddleston, president of investment firm and natural-gas producer Aethon Energy Management.

“The DOE would just slow down giving out money in a Trump administration,” he said.

A small, vocal faction of GOP budget hard-liners could make it difficult for Trump to preserve even parts of the IRA. The law would make for a tempting target to offset fiscal deficits as the party pushes to renew its 2017 tax cuts next year.

Big bets

The oil industry has fought Biden’s administration for years on restricting fracking, rules for drilling in the Gulf of Mexico and other environmental regulations. But companies that are investing in low-carbon projects stand to lose much if Biden’s climate law is repealed or watered down.

Occidental, one of America’s largest oil producers, is betting big on a largely unproven technology—at a large scale—to suck carbon dioxide from the atmosphere and store it underground.

The process is costly and Occidental has said benefits from federal subsidies of $180 per metric ton of CO2 captured that way and stored permanently will boost the endeavor. Its CEO has for years personally lobbied in Washington to increase the value of the credits.

Bolstered by the IRA, Phillips 66 has transformed a 128-year-old Rodeo, Calif., oil refinery into one that can pump 50,000 barrel-per-day of renewable diesel and aviation fuel.

But the economics of producing renewable fuels are challenging and some of the refiner’s competitors, including Chevron, BP and Shell, have scaled back on similar plans this year. Losing IRA credits would make the business even more difficult.

Oil-and-gas companies are stressing that the IRA is valuable to the country’s economy now in hopes of avoiding tougher conversations after the election, lobbyists said.

“It’s really striking the degree of commitment the industry has made to low-carbon businesses like carbon capture, biofuels and hydrogen,” said Daniel Yergin, the vice chairman of S&P Global and a veteran chronicler of energy trends.

<<<



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[Prudent Capitalist]

Buffett and BRK are only selling down the BAC stake to get it under 10%, which lessens the regulatory and reporting requirements.

[BullNBear52]

BAC reports on 10/14. In 2Q2024 they beat the street. We'll see just how right he is. I do follow the banks and don't see how they can miss this quarter.

[DiscoverGold]

Warren Buffett and Berkshire Hathaway $BRK.B just cant stop selling Bank of America $BAC shares recently
By: Evan | October 2, 2024

• Warren Buffett and Berkshire Hathaway $BRK.B just cant stop selling Bank of America $BAC shares recently



Read Full Story »»»

DiscoverGold

[Prudent Capitalist]

I could be wrong, but believe it is clear he and BRK just want to get the BAC position under 10% to avoid all of the additional reporting and regulatory obligations that come with a 10% position.

[BullNBear52]

The rate cuts will obviously cut into BAC net interest income. I'm not convinced that as a whole the market doesn't have more to gain.

[DiscoverGold]

I am not surprised. A market high in September will lead to a decline over the next few months, maybe until February 2025.

DiscoverGold

[BullNBear52]

I read recently that he is moving more and more into short term bonds versus equity.

[DiscoverGold]

Warren Buffett and Berkshire Hathaway $BRK.B just filed for its sale of another ~11.7M shares of Bank of America $BAC for ~$460.7M (Pre Tax)
By: Evan | September 28, 2024

• Warren Buffett's daily routine right now:

- Wake Up
- Sell more Bank of America shares
- Do rich people things
- Go to bed

Warren Buffett and Berkshire Hathaway $BRK.B just filed for its sale of another ~11.7M shares of Bank of America $BAC for ~$460.7M (Pre Tax)



Read Full Story »»»

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[gfp927z]

Shiller P/E ratio - >>> The Oracle of Omaha's $56 billion silent warning foreshadows potential trouble for Wall Street


https://finance.yahoo.com/news/warren-buffetts-56-billion-silent-092100169.html


Although Warren Buffett has consistently shied away from offering negative takes on the U.S. economy and/or stock market during his nearly six-decade tenure as CEO of Berkshire Hathaway, $56 billion of net-equity security sales over an 18-month stretch speaks volumes without the Oracle of Omaha having to say a word.

The culprit for this consistent net-selling activity looks to be a historically pricey stock market and the irrational behavior of some of its participants.

In Buffett's annual letter to shareholders that was released in February, he had this to say about the "casino-like behavior" he wants no part of:

Though the stock market is massively larger than it was in our early years, today's active participants are neither more emotionally stable nor better taught than I was in school. For whatever reasons, markets now exhibit far more casino-like behaviors than they did when I was young. The casino now resides in many homes and daily tempts the occupants.

At the end of the day, Warren Buffett and his team want a fair deal on a great business, and they aren't willing to waiver from this ideal. As the S&P 500's Shiller price-to-earnings (P/E) ratio shows, there simply aren't many good deals at the moment.

The Shiller P/E ratio, which is also known as the cyclical adjusted price-to-earnings ratio (CAPE ratio), is based on average inflation-adjusted earnings from the last 10 years. This differs from the traditional P/E ratio which only examines trailing-12-month earnings. The beauty of the Shiller P/E averaging earnings over a 10-year period is that it minimizes the impact of one-off events (e.g., the COVID-19 lockdowns).

As of the closing bell on May 3, the S&P 500's Shiller P/E stood at 34.05. This is nearly double its average reading of 17.11 when back-tested to 1871, and it's the third-highest reading during a bull market in over 150 years.

Perhaps the bigger concern is what's historically followed the five previous instances where the Shiller P/E ratio surpassed 30 during a bull market rally. Following all five prior instances, the S&P 500 or Dow Jones Industrial Average went on to lose between 20% and 89% of their respective value. Though the Shiller P/E ratio isn't a timing tool -- i.e., stocks can stay pricey for multiple quarters, if not years -- readings above 30 tend to be a precursor to big moves lower in the stock market.

The lack of desire by Buffett and his team to buy stocks during an 18-month stretch suggests they expect valuations to contract.

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[gfp927z]

>>> Berkshire Hathaway’s Jain Sells Over Half of Class A Shares


Bloomberg

by Alexandre Rajbhandari

September 12, 2024


https://finance.yahoo.com/news/berkshire-hathaway-jain-sells-over-143854442.html


(Bloomberg) -- Berkshire Hathaway Inc.’s vice chair of insurance operations, Ajit Jain, sold $139 million worth of his Class A shares in Warren Buffett’s conglomerate.

Jain, one of Buffett’s top lieutenants, disposed of 200 of the Class A shares for about $695,418 each, according to a regulatory filing Wednesday. The disposal means the longterm executive is left with control of 166 such shares, 61 of which he directly owns.

When reached by phone, Jain declined to comment. Berkshire Hathaway didn’t immediately respond to a request for comment.

The move marks a shift for Jain, who added 50 Class A shares to his holding between March 2023 and March this year. Still, he has been trimming his Class B stake in the conglomerate over the years, selling more than 70,000 such shares from March 2020 to March 2024, according to past proxy filings.

The executive joined Berkshire Hathaway in 1986 to work on the conglomerate’s insurance operations, which include car insurer GEICO.

Buffett has long praised Jain, saying in 2017 that he’s probably made more money for Berkshire than Buffett has. In 2018, Jain and Greg Abel were named vice chairmen of the firm, with Abel, who’s a decade younger than Jain, eventually being tapped as Buffett’s successor.

Investors have questioned whether Jain would stick around to help Abel run things once Buffett, now 94, leaves the firm. Jain still owns more Class B shares than Abel.

“We continue to be comfortable that the interests of Mr. Jain and Mr. Abel are aligned with shareholders,” James Shanahan, an analyst at Edward Jones who covers Berkshire Hathaway, told Bloomberg.

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[Bountiful_Harvest]

Buffett's Vice Chairman Dumps Over Half Of His Berkshire Shares

[EnchantedTitan62]

As a decade plus owner of Warren's gem, there's plenty more holdings which include Dairy Queen, Duracell, Nebraska furniture mart, a few home builders - I think Clayton Homes, I believe he bought out Mid american energy, possibly Fruit of the Loom, Sees Candy, so many more. I'll never part with it. 🍷

[Monksdream]

BRK.b new 52=week high

[BullNBear52]

What no one wished WB a Happy Birthday yesterday?

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175010015

Even Bar mentioned it on an unrelated Board here on IHub.

Interesting it looks like according to Bar that Warren couldn't cut it at Wharton's.

where he transferred after spending two years at The Wharton School of Business at the University of Pennsylvania.

[bar1080]

Note that I don't own any WBA. Thank goodness! My two kids both have owned some for years. Once a pretty good holding and dividend grower. Originally bought it for them because it was son's first job, during college. Pharmacy tech.

[Prudent Capitalist]

And the share price just keeps going up, and up!

[DiscoverGold]

Warren Buffett started dumping his $BAC heavy at the $SPY top
By: TrendSpider | August 30, 2024

• Warren Buffett started dumping his $BAC heavy at the $SPY top.



Read Full Story »»»

DiscoverGold

[bar1080]

Stupendous!

[DiscoverGold]

Berkshire Hathaway $BRK.B filed for its sale of another ~24.7M shares of Bank of America $BAC for ~$981.9 Million (Pre Tax)
By: Evan | August 28, 2024

• THE BUFFETT CASH PILE IS QUICKLY ON ITS WAY TO $300B

Warren Buffett and Berkshire Hathaway $BRK.B filed for its sale of another ~24.7M shares of Bank of America $BAC for ~$981.9 Million (Pre Tax)

Berkshire has now sold more than $5 Billion worth of Bank of America since the end of Q2.



Read Full Story »»»

DiscoverGold

[Prudent Capitalist]

And truly significant to accomplish this without being one of the Mag 7 tickers.

[bar1080]

Funny. I was just looking at BRK's numbers a day or two ago and noticed they were just about to the $ Trillion mark.

[Prudent Capitalist]

Berkshire Hathaway Passes $1 Trillion Market Cap for First Time

09:58:15 AM ET, 08/28/2024 - MT Newswires

09:58 AM EDT, 08/28/2024 (MT Newswires) -- Shares of Berkshire Hathaway (BRK.A, BRK.B) rose in early-morning trading Wednesday, pushing the company's market capitalization past $1 trillion for the first time.