Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (30) |
Author: TheReitStuff ⎊☼🐝  😊 😞
Number: of 22347 
Subject: Re: Unite Group UTG, couple of notes
Date: 09/17/26 11:54 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 6
One more note; I believe that the first year partial takeover synergies (around £7m) are offset by one off costs of running two systems & severance costs in the current financial year. I just realised I haven't mentioned that particular cancelled/lagged benefit effect before in any of my discussion of this stock. The takeover synergy benefits, as with the buyback effect on share count, should come into full force in the following year.

Similarly, keep in mind that a poor set of results is still going to happen for the current financial year despite the good 'harvest' this week, because improvement in letting for Empiric also lags into the next financial year.

And wait - it gets worse! - if they succeed in selling off assets this year, they will lose a bunch of earnings immediately (and from their highest yielding assets, oof!), yet won't be able to deploy it into buybacks for a while *and* those buybacks won't fully count till a full year has passed (double oof!)

You're basically being paid to hold through a year or two of total misery with this stock :-)

Run the numbers though, see how the earnings play out current year, next year, year after; add in buyback effects at low prices; and add in some amount of NAV reversion once things stabilise.

And keep in mind, this stock is a wonderful way to diversify away from AI, Trump, etc into a new and far less exciting collection of problems.

TRS
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to TheReitStuff here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 589 posts about Non-US Stocks. The article-length ones it recommended most:
Greggs PLC (GRG.L) · 21 recs · 2025
Topicus: Not Constellation · 16 recs · 2026
Unite Group (UTG), UK, falling knife. · 13 recs · 2025
SKAN · 11 recs · 2025
MELI - Brazilian darling · 10 recs · 2025
Unthreaded | Threaded | Whole Thread (30) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community