> Warren Buffett Blog: December 2017

Wednesday, December 27, 2017

Income producing Asset vs Speculative Asset

Bitcoin vs Other Investments

"There are basically two kinds of assets. One, you look to the stream of income it will produce; the other, you hope like hell that someone will pay you more for it."

Warren Buffett thinks people are buying bitcoin because the price is going up. What happens when the price goes down?

“I will say this. It will come to a bad ending.” - Warren Buffett

Wednesday, December 13, 2017

Berkshire to get $3 billion from Burger King

Burger King-owner Restaurant Brands International Inc. is scheduled to redeem $3 billion in preferred shares from Buffett’s Berkshire Hathaway Inc. The money helped the fast-food chain finance its 2014 purchase of Tim Hortons. 

The redemption will add extra cash to Buffett’s arsenal for investments and takeovers. At the end of the third quarter, Buffett’s Omaha, Nebraska-based holding company had a record $109 billion in cash. 

Tuesday, December 12, 2017

Warren Buffett wins on Davita

Shares of Davita, a kidney care service provider, jumped 12.52% to $68.50 on Wednesday after UnitedHealth Group said it would buy the company's medical unit for $4.9 billion. As of December 12, 2017, Davita is up further trading at $70.35.

The biggest shareholder of Davita is Warren Buffett's Berkshire Hathaway according to data from Bloomberg. The company owns about 38 million shares, or about 21% of the total outstanding shares. 

Berkshire raked in about $295 million on Wednesday after DaVita's shares moved higher following the news. The gains are only on paper thus far, and Berkshire Hathaway would have to liquidate its position to realize the gains.

Monday, December 4, 2017

Warren Buffett winning on Home Capital deal

Warren Buffett invested in Canada's lender Home Capital in June 2017. Berkshire Hathaway Inc. provided a financial lifeline and became Home Capital's biggest investor with a sweetheart deal.

Berkshire Hathaway bought more than 16 million shares priced at $9.55 each, or 36-per-cent below the closing price on June 21. Given the gains since then, Mr. Buffett is now up nearly $115-million, or 75 per cent, on his initial investment.