> Warren Buffett Blog: July 2017

Wednesday, July 19, 2017

My effective tax rate was around 16% for 2016

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Monday, July 17, 2017

Rumours flying about Warren Buffett and US telecom company Sprint

Sprint's chairman, Masayoshi Son, has engaged in talks with Berkshire Hathaway's Warren Buffett and media mogul John Malone to discuss a potential investment in the U.S. wireless company, according to a report from the WSJ. 

Son met Buffett and Malone, the chairman of Liberty Interactive, separately this week at an annual gathering of CEOs in Sun Valley, Idaho, the Journal reported, citing people familiar with the situation.

Wednesday, July 12, 2017

Warren Buffett donates $3 Billion Dollars of Berkshire Stock

Warren Buffett this week donated around $3.17 billion worth of Berkshire Hathaway stock to the Bill & Melinda Gates Foundation and four family charities. 

Buffett's donation to the five charities comprised 18.63 million Class “B” shares of Berkshire, valued at $170.25 each as of Monday’s market close.

Berkshire said Buffett, 86, has made $27.54 billion in donations since 2006 to the five charities, including roughly $21.9 billion to the Gates Foundation.

Buffett still owns about 17 percent of Berkshire, the Omaha, Nebraska-based conglomerate he has run since 1965, despite having donated more than 40 percent of his holdings.

Tuesday, July 11, 2017

Berkshire acquisition of Oncor

Berkshire Hathaway Energy, agreed to acquire Oncor for $18.1 billion, including debt. In recent years, two other sales of the state’s largest regulated utility were proposed, only to be derailed by the Texas Public Utility Commission. This case is different, in part because Berkshire and Oncor had the foresight to win over stakeholders in advance. Groups representing cities, industries and consumers support the deal. Even the PUC staff director endorsed the takeover.

For decades, Buffett has invested in strong companies with strong managers, and let them continue doing what they do best. His deals aren’t driven by synergies or financial engineering, which are common in other acquisitions. Buffett explained his philosophy in an owner’s manual for investors, which was first written in 1996 and later updated.

“We subcontract all of the heavy lifting in this business to the managers of our subsidiaries,” Buffett wrote, referring to himself and partner Charlie Munger.