No. of Recommendations: 20
In June of 2022, Greg sold his stake in BHE, and re-deployed a chunk, but not all back into Berkshire stock, the last tranche bought AFTER the last proxy came out, in which Buffett did make comments about how directors should have a certain amount based on their means. To me, he was prodded in to the last tranche.
The issues now for the utility stem from the wildfires in 2020. Did Greg know in 2022 what was coming their way?
In any event it was a good sale, and he has not put back all the money into Berkshire, and maybe he doesn't have to I guess.
One of my issues with some of the board members, some of them longtime members, even not so long, is that they could and should own more stock. Buffett is probably the best corporate insider there is when it comes to calculating intrinsic value for his own company. When he repurchases for Berkshire it is clear at what price he feels is a good value and during the recent past there were opportunities to buy under him. Not only under him, but under considerable dollars that were spent. For example in 2021, they repurchased 20+ billion and, in 2022, you could have bought at better prices than Buffett (I know because I did), a full year later. The fact that Ken C. or Sue Decker just sat there and didn't buy during 2022 boggles my mind.
Meryl Witmer acts the way I like, when there was a good value she stepped in.
No. of Recommendations: 2
Great post.... good to see critical thinking.
"The issues now for the utility stem from the wildfires in 2020. Did Greg know in 2022 what was coming their way?"
I find it somewhat surprising the Estate of Walter Scott has not sold or put their ownership stake to Berkshire.
No. of Recommendations: 8
I find it somewhat surprising the Estate of Walter Scott has not sold or put their ownership stake to Berkshire.
It's a unique asset so they may never exchange/sell their position in BHE but in general it makes more sense to put their shares to Berkshire, tax-free, in exchange for BRK common stock during a bear market when Berkshire's stock valuation is very low. BHE's valuation will be based on a formula (kind of like Marmon & Pilot) but the number of shares of Berkshire common stock they receive will be effected by the market price at the time they elect to exercise their put. BHE's formulaic valuation won't really be effected much by a bear market.
No. of Recommendations: 1
Interesting points and very good questions.
I agree with you on some of the Board members. Sue Decker has been on the board for many years. She’s independently wealthy— yet owns 3,000 B shares?
