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PlanMaestro

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http://money.cnn.com/video/news/2014/05/03/n-warren-buffett-general-motors-ceo-mary-barra-liability.cnnmoney/

Interesting video. Buffett saying he had lunch with Barra recently and he is very impressed 'She's dynamite ... I was really impressed.'.

I think there is a real possibility that Berkshire is increasing their stake in GM in the last few months a these depressed prices.

Also the April sales looked really good, specially considering the circumstances. And it seems that they are trying to keep price discipline in their sales.

I believe that the stock will see the 50s in the next couple of years because they are capable of earning 5$ a share and they have a very strong balance sheet.

 

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http://dealbook.nytimes.com/2014/05/03/live-blog-berkshire-hathaways-2014-shareholder-meeting/#about-mungers-hearing

 

Buffett is worried about Munger's hearing. Is it just a joke, or is it a stock tip?

 

...

 

Then Mr. Buffett wades in. “I get a little worried about Charlie. I probably shouldn’t say this” — a trace of an impish smile crossing his face — “but I’m worried about Charlie.”

 

Why? It’s Mr. Munger’s hearing. Mr. Buffett recalls talking to a doctor about his business partner’s hearing. To test the extent of any potential hearing damage, Mr. Buffett says from across the room, “Charlie, what do you think about buying General Motors [stock] at $35?”

 

Nothing.

 

Mr. Buffett moves closer. “Charlie, what do you think about buying General Motors at $35?”

 

Nothing.

 

The billionaire then stands right next to his partner and says directly in his friend’s ear, “Charlie, what do you think about buying General Motors at $35?”

 

Mr. Munger turns to him and says, “For the third time, I said yes.”

 

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http://dealbook.nytimes.com/2014/05/03/live-blog-berkshire-hathaways-2014-shareholder-meeting/#about-mungers-hearing

 

Buffett is worried about Munger's hearing. Is it just a joke, or is it a stock tip?

 

...

 

Then Mr. Buffett wades in. “I get a little worried about Charlie. I probably shouldn’t say this” — a trace of an impish smile crossing his face — “but I’m worried about Charlie.”

 

Why? It’s Mr. Munger’s hearing. Mr. Buffett recalls talking to a doctor about his business partner’s hearing. To test the extent of any potential hearing damage, Mr. Buffett says from across the room, “Charlie, what do you think about buying General Motors [stock] at $35?”

 

Nothing.

 

Mr. Buffett moves closer. “Charlie, what do you think about buying General Motors at $35?”

 

Nothing.

 

The billionaire then stands right next to his partner and says directly in his friend’s ear, “Charlie, what do you think about buying General Motors at $35?”

 

Mr. Munger turns to him and says, “For the third time, I said yes.”

 

Buffett has cracked this joke many times with different stocks but surprisingly the stock price is always 35 :)

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http://money.cnn.com/video/news/2014/05/03/n-warren-buffett-general-motors-ceo-mary-barra-liability.cnnmoney/

Interesting video. Buffett saying he had lunch with Barra recently and he is very impressed 'She's dynamite ... I was really impressed.'.

I think there is a real possibility that Berkshire is increasing their stake in GM in the last few months a these depressed prices.

Also the April sales looked really good, specially considering the circumstances. And it seems that they are trying to keep price discipline in their sales.

I believe that the stock will see the 50s in the next couple of years because they are capable of earning 5$ a share and they have a very strong balance sheet.

 

 

thanks both of you  :)

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  • 2 weeks later...

 

http://money.cnn.com/video/news/2014/05/03/n-warren-buffett-general-motors-ceo-mary-barra-liability.cnnmoney/

Interesting video. Buffett saying he had lunch with Barra recently and he is very impressed 'She's dynamite ... I was really impressed.'.

I think there is a real possibility that Berkshire is increasing their stake in GM in the last few months a these depressed prices.

Also the April sales looked really good, specially considering the circumstances. And it seems that they are trying to keep price discipline in their sales.

I believe that the stock will see the 50s in the next couple of years because they are capable of earning 5$ a share and they have a very strong balance sheet.

 

 

thanks both of you  :)

 

I actually talked with Ted Weschler at the annual meeting.  I asked him what he would be buying if he was dealing with smaller sums of money.  He mentioned that he is allowed to invest in his personal account and mentioned the GM C warrants.  He thinks there is about a 30% chance they go to zero with the possibility they go 10X.  I wouldn't be surprised if you see Berkshire's stake increase in the 13-f filing today.

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quick glance at 13F shows BRK sold 10M shares of GM in the quarter

 

 

http://money.cnn.com/video/news/2014/05/03/n-warren-buffett-general-motors-ceo-mary-barra-liability.cnnmoney/

Interesting video. Buffett saying he had lunch with Barra recently and he is very impressed 'She's dynamite ... I was really impressed.'.

I think there is a real possibility that Berkshire is increasing their stake in GM in the last few months a these depressed prices.

Also the April sales looked really good, specially considering the circumstances. And it seems that they are trying to keep price discipline in their sales.

I believe that the stock will see the 50s in the next couple of years because they are capable of earning 5$ a share and they have a very strong balance sheet.

 

 

thanks both of you  :)

 

I actually talked with Ted Weschler at the annual meeting.  I asked him what he would be buying if he was dealing with smaller sums of money.  He mentioned that he is allowed to invest in his personal account and mentioned the GM C warrants.  He thinks there is about a 30% chance they go to zero with the possibility they go 10X.  I wouldn't be surprised if you see Berkshire's stake increase in the 13-f filing today.

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http://money.cnn.com/video/news/2014/05/03/n-warren-buffett-general-motors-ceo-mary-barra-liability.cnnmoney/

Interesting video. Buffett saying he had lunch with Barra recently and he is very impressed 'She's dynamite ... I was really impressed.'.

I think there is a real possibility that Berkshire is increasing their stake in GM in the last few months a these depressed prices.

Also the April sales looked really good, specially considering the circumstances. And it seems that they are trying to keep price discipline in their sales.

I believe that the stock will see the 50s in the next couple of years because they are capable of earning 5$ a share and they have a very strong balance sheet.

 

 

thanks both of you  :)

 

I actually talked with Ted Weschler at the annual meeting.  I asked him what he would be buying if he was dealing with smaller sums of money.  He mentioned that he is allowed to invest in his personal account and mentioned the GM C warrants.  He thinks there is about a 30% chance they go to zero with the possibility they go 10X.  I wouldn't be surprised if you see Berkshire's stake increase in the 13-f filing today.

 

He does have personal stakes in DVA , DTV, LMCA, and STRZA as far as I know.  Thanks for the tid bit and must have been nice to talk to him.

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I actually talked with Ted Weschler at the annual meeting.  I asked him what he would be buying if he was dealing with smaller sums of money.  He mentioned that he is allowed to invest in his personal account and mentioned the GM C warrants.  He thinks there is about a 30% chance they go to zero with the possibility they go 10X.  I wouldn't be surprised if you see Berkshire's stake increase in the 13-f filing today.

 

I may be missing something here, but if you like the GM C warrants, mightn't you just buy comparable strike leaps instead?

 

According to quick info pulls:

GM-WTC:                  expire 12/31/2015;  strike is $42.31;  current price is $2.32;

GM $42 '16 leaps:    expire 1/15/2016;    strike is $42.00;  current price is $1.77

 

The GM warrants don't have ordinary dividend protection, no?  So in practice, I'm aware of very little difference here, other than a fairly significant valuation gap - am I missing something important?  Volume?

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looks like Ted just reduced Berkshires stake in GM and no warrants to be found

 

He said he takes considerable more risk in his personal portfolio than what he would ever do for Berkshire.  I'm pretty certain he wouldn't buy the C warrants for BRK.  I'm not sure why you would buy the C warrants instead of the leaps.

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I may be missing something here, but if you like the GM C warrants, mightn't you just buy comparable strike leaps instead?

 

According to quick info pulls:

GM-WTC:                  expire 12/31/2015;  strike is $42.31;  current price is $2.32;

GM $42 '16 leaps:    expire 1/15/2016;    strike is $42.00;  current price is $1.77

 

The GM warrants don't have ordinary dividend protection, no?  So in practice, I'm aware of very little difference here, other than a fairly significant valuation gap - am I missing something important?  Volume?

 

maybe it's because people can short the leap options (many doing covered calls) but they can't short the warrants. So the options is miss-priced? Another reason could be the warrant is cash settled (not sure if it is), and the options you have to pay brokers to exercise it or sell it before expiration?

 

anyway, I feel it's too risky.. look at BP.. took many years to get out of their "one-time problem". For GM, I wonder if this is a culture issue. Culture is too hard to change. Their own workers in the factory that made these cars couldn't believe this is happening. They were proud of their work. They thought they are producing good quality cars. That's a little hopeless. The same people will make the same mistakes again.

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