Warren Buffett loves energy. Berkshire Hathaway
Now Chevron Owns Some $58 Billion
and Occidental Petroleum
securities. It’s not Berkshire’s largest holding; That would be the insurance, which would be led by auto insurer Geico; 6% of apples,
worth $135 billion; and the Burlington Northern Santa Fe Railroad, based on the market value of its similarly sized public rival Union Pacific, for $130 billion.,
But energy is the focus of this year. About half of Berkshire’s $66 billion stock purchase in 2022 has been in energy. Berkshire owns more than 8% of the No. 2 U.S. energy company Chevron — 80% acquired this year — which is now worth about $32 billion with a profit of about $8 billion, based on a Is baron’s assessment. Berkshire’s 20% Occidental Petroleum stake, which was purchased this year, is valued at $15 billion with an estimated profit of about $5 billion. Berkshire also owns $10 billion of OXY preferred stock with an 8% dividend yield.
Other Berkshire equity buys, including Paramount Global, haven’t done well this year either,
All three are in red.
Buffett was asked at Berkshire’s 2021 shareholder meeting if he was comfortable owning oil stocks. “If you expect perfection in your spouse or your friends or some company, you’re not going to find it,” he said. “Chevron isn’t a bad company in the least.” Buffett then asked Vice Chairman Charlie Munger for his views. “You can imagine two things,” Munger said. “A young man is married in your family. He is an English professor at Swarthmore, or he works for Chevron. who would you choose? I’ll take that guy from Chevron.”
write to Andrew Berry [email protected] Feather
began laying off 13% of its 87,000-person workforce. Berkshire Hathaway
When buying back shares, most of the quarterly losses occurred on their investment portfolio and insurance payments. Frustrated Walt Disney’s massive spending on streaming‘s
the gain. And Elon Musk Sells $4 Billion in Tesla
share. Shares rose early in the week, then slipped on election uncertainty. Inflation in October slowed to 7.7%, the biggest rally since 2020. In the week, the Dow industry rose 4.15% to 33,749.18; The S&P 500 rose 5.9% to 3993.05; And the Nasdaq Composite rose 8.1% to 11323.33.
a crypto coronary
It started with a Twitter brawl between crypto-exchange leaders Sam Bankman-Fried of FTX and Binance’s Changpeng Zhao, in which Binance sold $588 million in FTX tokens. As of Tuesday, FTX found itself in a liquidity crunch and turned to Binance for a bailout. Binance began due diligence, only to exit on Wednesday. FTX halts withdrawals, Banksman-Fried hits $8 billion, regulators move in and crypto tokens collapse. On Friday, FTX declared bankruptcy and Bankman-Fried stepped down.
Democrats back a much-anticipated GOP wave. Republicans regain control of the House, two major Senate races are undecided, and a third, Georgia, is headed for a December runoff. Former President Donald Trump has seen several of his candidates lose, hinting at running again. Trump attacks Florida Gov. Ron DeSantis, an opponent who easily won re-election.
Russia exits Kherson
Moscow ordered a retreat from Kherson, and the Ukrainian army quickly moved to the major city. Ukrainian President Zelensky said that talks with Russia on Ukraine’s terms are possible.
more covid in china
Covid cases in China hit a six-month high, and the country’s National Health Commission promised to be “unbelievable” on the restrictions. Exports fell in October. Apple
China warned of delays in iPhone 14 supplies, and Bloomberg reported that the company expects to make three million fewer iPhone 14s in 2022. Distressed investor Oaktree sold a 2.2 million-square-foot plot in Hong Kong for $637 million that was slated for one. Versailles Style Mansion for China Evergrande‘s
President. Evergrande incurred a loss of $770 million on the project.
History of Deal Making
Walgreens Boot Alliance‘s
The urgent care business, Village Practice Management, said it is merging with CityMD’s parent Summit Health for $9 billion. Insurer Signa
The deal is investing in… Philip Morris International
Received approval from Elliott Management to purchase Swedish Match for $15.7 billion. Elliot is the largest shareholder of Swedish Match … Taiwan’s Foxconn
Plans to invest $170 million in Lordstown Motors
And partner on an electric truck. OK… Elon Musk told Twitter staff that bankruptcy was possible as more executives exited.
write to Robert Teitelman at [email protected]
Credit: www.marketwatch.com /