|Bid||263,001.00 x 1000|
|Ask||276,500.00 x 800|
|Day's range||268,000.00 - 274,450.00|
|52-week range||239,440.00 - 347,400.00|
|Beta (5Y monthly)||0.76|
|PE ratio (TTM)||44.59|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
The beleaguered banking giant has had a tough time lately. Here's what it needs to catch a break.
Musk is the seventh richest in the world, behind the likes of Amazon tycoon Jeff Bezos, Microsoft founder Bill Gates and Facebook entrepreneur Mark Zuckerberg.
The reduction in the conglomerate's outstanding shares was noted in a Wednesday filing concerning Buffett's $2.9 billion donation of Berkshire stock to five nonprofits, part of his pledge to give away nearly all his fortune. If Berkshire repurchased those shares, it might have conducted roughly $4.9 billion to $5.9 billion of buybacks, depending on the price, over 2-1/2 months, analysts said."It implies relatively strong buyback activity," said James Shanahan, an Edward Jones & Co analyst with a "buy" rating on Berkshire.
Amazon (NASDAQ: AMZN) shares have surged past $3,000 in recent days as investors bet that the e-commerce giant will emerge from the pandemic even stronger than it was before. CEO Jeff Bezos likes to say it's always Day One, and said in last year's shareholder letter, "Amazon today remains a small player in global retail," indicating he still believes there's plenty of opportunity for growth. In order to satisfy shareholder expectations, Amazon will have to execute on those opportunities.
Shares of many insurance companies fell by double-digit percentages in the first six months of 2020, according to data provided by S&P Global Market Intelligence. Shares of Allstate (NYSE: ALL), which primarily sells auto and homeowners insurance, were down 13.8% in the first half of the year. Specialty insurer Markel (NYSE: MKL) saw its shares tumble 19.2%.
In the latest trading session, Berkshire Hathaway Inc. (BRK.B) closed at $178.80, marking a -1.32% move from the previous day.
Vice Chairman Charlie Munger isn't either -- although he's just as entertaining and informative to listen to. In fact, the reason I plan to own Berkshire Hathaway stock until my retirement (I'm 38) and beyond is precisely because Berkshire Hathaway will do just fine no matter who is at the helm. In the 56 years since Warren Buffett took control of what was then a struggling textile manufacturer, Berkshire Hathaway has evolved into a massive conglomerate with more than 60 subsidiary businesses.
(Bloomberg) -- Warren Buffett’s $2.9 billion gift this week means he has now given away Berkshire Hathaway Inc. shares valued at more than $37 billion since 2006.His philanthropy -- along with Berkshire’s underwhelming stock performance recently -- is finally starting to weigh on his net worth after years where his fortune defied his annual giveaways to rise ever higher. Buffett’s $68.6 billion is enough for eighth-place on the Bloomberg Billionaires Index, his lowest position since the index started in 2012. He ranked in the top 5 as recently as June.But in recent weeks the 89-year-old has been leapfrogged first by Steve Ballmer, the former Microsoft Corp. chief executive officer, and this week by Google co-founders Larry Page and Sergey Brin. The changes underline the extent to which technology fortunes now dominate the upper echelons of the world’s richest people.Six of the seven richest people on the planet owe their wealth to the sector, including No. 1 Jeff Bezos, who has added $68 billion to his net worth this year, and Ballmer, who’s gained $18 billion. Tech fortunes are the best performing on the index, up 25% in 2020.Ballmer’s fortune has soared thanks to the 4% stake he’s estimated to have retained since leaving Microsoft’s board in 2014. The software company’s shares have risen almost fivefold since then, boosting his fortune to $76.5 billion. Ballmer declined to comment on his Microsoft stake. Berkshire didn’t respond to a request for comment.Buffett may welcome signs his gifts are shrinking his fortune. His pledge to give away his fortune only got harder as his fortune continued to rise. In his latest letter to shareholders he said he expects it will now take 12 to 15 years for his estate to dispose of all the shares he holds at the time of his death.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In a statement on Wednesday, Berkshire said Buffett's 15th annual donation comprised 15.97 million Class B shares of Berkshire. It boosted his donations to the charities to more than $37.4 billion since Buffett, who turns 90 on Aug. 30, began giving his Berkshire shares away in 2006. Four-fifths of the donations go to the Gates Foundation.
(Bloomberg) -- Warren Buffett gave Berkshire Hathaway Inc. shares valued at about $2.9 billion to charities including the Bill & Melinda Gates Foundation as part of his annual plan started more than a decade ago.The nearly 16 million Berkshire Class B shares were donated to a total of five philanthropies, including ones run by his children, according to a statement Wednesday. Buffett has given more than $37 billion with the routine gifts and a few other philanthropic donations since 2006.Buffett, 89, built one of the world’s largest fortunes out of his Omaha, Nebraska-based conglomerate. He’s pledged to donate all of the Berkshire shares he owns to various philanthropies after his death, and outlined that plan in February in his annual letter to shareholders.His latest gift, which cuts his net worth to around $69 billion, will likely see him fall two places to eighth-richest on the Bloomberg Billionaires Index with Google co-founders Larry Page and Sergey Brin set to leapfrog him on the ranking. The list officially updates after the close of each trading day in the U.S.Buffett has been close to Bill Gates for years, with the co-founder of Microsoft Corp. previously serving as a Berkshire director. Other groups receiving donations were the charity named after his late wife, the Susan Thompson Buffett Foundation, as well as ones led by his children: the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation.The investor said Wednesday that he’s received only “minor” tax-deduction benefits from the gifts. Over the past 15 years, every $1,000 of contributions has allowed him to deduct a little less than $1 from his taxable income, according to the statement.(Updates with wealth details in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
What does Berkshire Hathaway's deal with Dominion Energy really tell us about the Oracle of Omaha's acquisition strategy?
Blackbaud, Forward Air, Chipotle, Dominion and Berkshire Hathaway highlighted as Zacks Bull and Bear of the Day
Admittedly, trying to understand what goes on inside the mind of Tesla (NASDAQ: TSLA) CEO Elon Musk is probably a fruitless endeavor. There's no denying that he's a visionary; but his thought process can vacillate almost as wildly as Tesla's share price. On Valentine's Day (Feb. 14), a filing with the Securities and Exchange Commission showed that Musk had purchased 13,037 shares of Tesla for an average price of $767.
The main trend changed to up on the daily chart. This move was likely fueled by a combination of short-covering and aggressive counter-trend buying.
(Bloomberg) -- One of the largest utilities in America is starting to turn its back on natural gas.Dominion Energy Inc., the second-biggest U.S. power company by market value, on Sunday said it’s selling substantially all of its gas pipeline and storage assets to Berkshire Hathaway Inc. for $4 billion. It’s the largest deal announced this year to buy U.S. energy assets, according to Bloomberg data.In a separate statement, Dominion and its partner Duke Energy Corp. said they’re killing the controversial Atlantic Coast gas pipeline along the U.S. East Coast, citing ongoing delays and “cost uncertainty.”The moves come as utilities face increasing pressure from local governments, investors and environmentalists to quit fossil fuels. While long heralded as a cleaner alternative to coal and heating oil, gas is drawing stiff oppositions from left-leaning state lawmakers, making it increasingly difficult to build pipelines and other infrastructure.“Until these issues are resolved, the ability to satisfy the country’s energy needs will be significantly challenged,” Dominion Chief Executive Officer Thomas Farrell said on a call with analysts. “This trend, so deeply concerning for our country’s economic growth and energy security, is a new reality.”Read More: Grim Day for Pipelines Shows They’re Almost Impossible to BuildShares of Dominion, which also announced it’s cutting its dividend, fell 11% Monday, the most in more than three months. The company is taking $2.7 billion to $3.2 billion in pre-tax charges related to the canceled pipeline, it said in a filing.The push away from gas positions Dominion as more of a pure-play state-regulated utility at a time when oil and pipeline operators have lagged the broader market. In the last year, an index of pipeline companies has fallen 36%, while the S&P 500 Index has gained 4.7%.“Given the bend towards decarbonization efforts in the country, the move away from natural gas, and investor demand for more simplified utility structures, we believe this is absolutely the correct move for Dominion to make,” Guggenheim analysts led by Shahriar Pourreza said in a research note.Read More: Wall Street Falls Out of Love With Once-Coveted Fossil FuelTo be clear, Richmond, Virginia-based Dominion, which provides power and gas to seven million customers in 20 states, isn’t walking away from the fossil fuel altogether. It will still sell gas to customers for heating and cooking. It’s retaining an interest in its Cove Point liquefied natural gas export terminal in Maryland. And 40% of the electricity the company generates comes from plants fueled by gas, coal and oil, according to its website.“They’ll still be burning lots of gas for decades ahead in the core utility business,” Bloomberg Intelligence analyst Kit Konolige said in an email.But pressure is mounting. Virginia enacted a law in April requiring Dominion’s utility in the state to be carbon-free by 2045.What Bloomberg Intelligence Says“Dominion’s unsurprising shutdown of the troubled Atlantic Coast Pipeline project and $4 billion sale of midstream properties take pressure off the strained balance sheet. In combination with a dividend cut, the steps shift Dominion to an almost all-utility growth story.”\-- Kit Konolige, senior utility analystRead the full report here.Atlantic Coast is the third U.S. gas pipeline project to scrapped or shelved this year. Williams Cos. opted not to reapply for a permit in May for a $1 billion pipeline extension after regulators in New York blocked it. And in February the Oklahoma-based company canceled plans for a pipeline that would have run from Appalachia to New York.While the Atlantic Coast pipeline project won a key victory last month when the U.S. Supreme Court sided against environmentalists and upheld a crucial permit, the project still faced formidable opposition and costs. “That would indicate that that wasn’t a strategic decision as much it was as a practical decision,” said Paul Patterson, an analyst at Glenrock Associates LLC.Read More: Duke to Book Charge of Up to $2.5 Billion From Canceled PipelineDeal with BerkshireDominion’s deal with Berkshire calls for the giant conglomerate to assume $5.7 billion in debt. The utility will use $3 billion of the proceeds to buy back shares. Dominion cut its projected 2021 dividend payment to around $2.50 a share, reflecting the assets being divested and a new payout ratio that aligns it better with industry peers.The transaction is expected to close during the fourth quarter. It will require the approval of federal agencies including the U.S. Department of Energy.Read More: Buffett Sticks to Comfort Zones With His Dominion Energy DealBerkshire is amassing more than 7,700 miles (12,400 kilometers) of natural gas storage and transmission pipelines and about 900 billion cubic feet of gas storage in the deal with Dominion. Warren Buffett’s conglomerate will also acquire 25% of Cove Point. With this transaction, Buffett has ended his period of relative silence on the acquisition front since the pandemic.The Dominion deal is set to be Berkshire’s largest acquisition ranked by enterprise value since its purchase of Precision Castparts Corp. in 2016. It will expand the company’s already sprawling empire of energy operations, which currently has operations in states including Nevada and Iowa.(Updates shares and adds impairment charge in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Markets were led once again by the tech-heavy Nasdaq, which rose 2.21% and closed at yet another record high.
Berkshire Hathaway makes a long-awaited acquisition, Goldman Sachs stock is up on a bearish report, and Chipotle shares surge to an all-time high.
The energy giant also agreed to divest its natural gas transmission and storage assets to Berkshire Hathaway. The proceeds will not be used to fund the company's ambitious renewable energy portfolio.
Dominion Energy (NYSE: D) announced a series of moves over the weekend, highlighted by the sale of its gas transmission and storage assets to Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). The transaction will transform the company by refocusing its efforts on expanding its core regulated electric and natural gas utility operations. This move, along with others Dominion Energy announced, will significantly enhance its financial profile while dramatically reducing its business model's risk.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has been on the prowl for good purchases for a long time, and it finally found one over the weekend. Meanwhile, Uber Technologies (NYSE: UBER) got the green light to move forward with an acquisition of its own that should help it boost its market share in a key industry niche. Berkshire Hathaway shares were up about 2% on news that Warren Buffett's insurance giant has found a target on which to deploy some of its vast cash hoard.
(Bloomberg) -- As Warren Buffett moves off the sidelines for the first time since the global pandemic struck, he’s sticking to the areas he knows best.Berkshire Hathaway Inc. announced an agreement Sunday to purchase Dominion Energy Inc.’s natural gas pipeline and storage assets for an enterprise value of $9.7 billion, expanding its energy empire even further. While the deal wasn’t the splashy “elephant-sized” acquisition that Buffett has sought for his $137 billion cash pile, the move shows he’s carefully opening Berkshire to acquisitions, according to Cathy Seifert, an analyst at CFRA Research.“It represents a little bit of an opening of a valve. I don’t necessarily think it’s a light switch that flipped from off to on,” Seifert said. The deal is a “prudent move and one that can be strategically justified and also tucked into the existing business model.”Buffett has stayed relatively quiet as the Covid-19 outbreak ripped through the U.S., raising questions about whether he would find attractive deals or financing opportunities similar to the moves he pulled off in the 2008 credit crisis. In some ways, the Federal Reserve beat him to the punch, taking steps that helped swiftly unlock markets earlier this year. That meant that the opportunities Berkshire had been looking at dried up, Buffett told investors in May at his annual meeting.The deal with Dominion Energy hints that opportunities might start cropping up for his conglomerate. It also shows Buffett is willing to put some of his funds to work, despite expressing caution in May that his cash pile wasn’t unreasonably high when considering worst-case possibilities for the pandemic.“He’s willing to make investments now, of a fairly sizable amount,” said David Kass, a professor of finance at the University of Maryland’s Robert H. Smith School of Business. “It’s very positive that he’s sending a signal for the right deal at the right price, $10 billion or more -- ‘We’re ready to go, we’re ready to invest.’”Buffett, who has crafted Berkshire into a conglomerate valued at nearly $443 billion, built his reputation as an investor able to swoop in during volatile markets to strike unique and complicated deals in past crises. After being stymied on the acquisition front during the recent bull market for stocks, Buffett still wasn’t finding any deals during the initial stages of the pandemic and even dumped his stakes in the major U.S. airlines.His inability to make a major acquisition recently has drawn scrutiny from his critics, who argued that Buffett lost his ability to pull off the game-changing transactions that helped vault Berkshire into the ranks of the most valuable U.S. public companies. Now, the deal to buy substantially all of Dominion Energy’s natural gas transmission and storage assets for $4 billion, along with the assumption of $5.7 billion in debt, ranks as its biggest acquisition in more than four years.“We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business,” Buffett, who is chief executive officer and chairman of Omaha, Nebraska-based Berkshire Hathaway, said in a statement Sunday.Berkshire’s Class A shares, which are down almost 20% this year, gained 2.1% to $273,254 at 10:30 a.m. in New York. Dominion Energy dropped 6.7% to $77.18.“I’m inspired to see that, given that he’s bearish, he’s still willing to make acquisitions where he thinks it makes sense and where it meets Berkshire’s hurdle points,” said Darren Pollock, a portfolio manager at Cheviot Value Management, which invests in Berkshire shares.Buffett has considered its energy business one of the “lead dogs” of Berkshire’s non-insurance operations alongside its railroad. The purchase expands its hold in the sector, adding more infrastructure to handle natural gas to its already sprawling energy operations across states such as Nevada and Iowa. Berkshire also struck the deal at a low point in the market. Natural gas futures in the U.S. dropped last month to their lowest point in 25 years and have recovered just slightly since then.“This looks like confirmation that commodities like energy are undervalued,” Bill Smead, chief investment officer at Smead Capital Management, which owns Berkshire shares, said in an emailed comment. “At the bottom, assets move from weak hands to strong hands.”What Bloomberg Intelligence Says“Berkshire Hathaway’s $9.7 billion acquisition of Dominion’s gas-line assets and debt further solidifies its position in natural gas and is opportunistic, given the movement in energy prices this year and the desire of some participants to move to cleaner fuel sources.”\--Matthew Palazola, senior industry analyst, and Derek Han, associate analystBerkshire is digging deeper into a business that’s been facing increasing scrutiny amid the push for energy companies to shift away from fossil fuels. In its own statement on Sunday, Dominion Energy cited its target to reach net-zero emissions by 2050.The deal also highlights the work of one of Buffett’s key deputies, Greg Abel, who led the energy business for years and is now chairman of Berkshire Hathaway Energy alongside his role as Berkshire’s vice chairman for all non-insurance businesses. Abel gained a reputation as a key dealmaker for Berkshire with the 2013 purchase of NV Energy and even the battle to buy Oncor Electric Delivery Co., which didn’t ultimately come together. Abel is viewed as a potential successor to Buffett, 89.The Dominion deal is set to be Berkshire’s largest acquisition ranked by enterprise value since its purchase of Precision Castparts Corp. in 2016. Still, Buffett ended the first quarter with a record $137 billion on hand and has been hankering for a major acquisition to put a chunk of cash to work. The Dominion agreement’s total enterprise value would account for about 7% of that total.“It’s not something that’s going to move the needle from a balance-sheet standpoint, but it’ll produce several hundred million dollars a year in net income to Berkshire,” said Cheviot’s Pollock. “That’s no paltry sum. That adds up over time.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Berkshire's (BRK.B) pending buyout of natural gas transmission and storage assets of utility company Dominion Energy will expand its natural gas transportation businesses.