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Christopher Bloomstran

Berkshire Hathaway Review and State of Value

-Overall the market is still not cheap, even following
-Nowhere near a secular low.
-Fed increasing rates with repercussions. More ripple effects to come? Far from out of the woods.
-On Berkshire:
--Absent BAC, BRK exited from a number of banks that were in the investment portfolio. Too much risk.
--More thoughts on Berkshire's investments in OXY and Chevron. Doubts they are long term investments.
--OXY - Buffett likes their management the Permian. Carbon capture(argues most will be paid by the taxpayer.
--Investment in Berkshire - Bond like. Knowable, durable, predictable.
--Best insurance business.
--Alleghany - Stole it. Operating business spiked in profitability last year.
--Berkshire has more than a 1/3 of global reinsurance business.

more..

https://www.youtube.com/watch?v=DzHrN22JrK0&list=P...

Interesting watch, with some different questions and alternative subject matter rather than just BRK. He still thought the market was significantly overvalued and then "next 10 to 20 years look bad for passive investing" ominous.

For years I was interested yet confused as to what made a few Berkshire investors enamored with Tilson. I now find the same thoughts about Bloomstran.

At least Bloomstran puts in considerable work vs. Tilson dusting off the same old high level model.

Chris is optimistic. That is for sure

I'll take my chances with passive over any active manager for the foreseeable future.

Like Munger said recently, money managers are in denial. Some will beat the mkt, and those managers are not on podcasts. They're just sitting, reading, and investing.

I question his supposition that the OXY investment can't be long term.

I enjoyed this interview. Thanks for posting the link!

Here's another one that I really liked. Not sure if this one was posted before. It's from July 2022.
Paraphrasing Blomstran: If you're buying BEK today, you're buying it at 8.3, they're reinvesting it at 10 to 12. The ROE is 10 to 12 and the stock price will track ROE over time.


https://acquirersmultiple.com/2022/07/chris-blooms...

Apologies if this was posted previously.

Howief1956

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