This was an important week for investment guru and billionaire watchers to see which gurus were holding which stocks. The full public equity holdings of Warren Buffett via Berkshire Hathaway Inc. (NYSE: BRK-A) were particularly of note, particularly with those B shares under “BRK-B” soon to split and giving a chance for even the less astute ranks of Joe Public to own a piece of the Berkshire dream. Obviously the huge change is via the Burlington Northern Santa Fe Corp. (NYSE: BNI) buyout. As part of this deal, Buffett is exiting Union Pacific (NYSE: UNP) and exiting Norfolk Southern (NYSE: NSC) stakes of about $600 million and $100 million, respectively, to avoid duplication and internal competition. The rail transport play now accounts for about one-quarter of the total Berkshire Hathaway entity upon closing. But the less obvious position in that Warren Buffett in 2009 has made it clear that there will be a simpler and probably less “stock-hound” version of Berkshire Hathaway ahead.
Buffett has gone higher up the food chain and is likely to be a creditor now inside or to large institutions. We have seen this during the crisis. Buffett negotiated a better deal for Goldman Sachs Group (NYSE: GS) than the US Government was able to get. Buffett’s preferred stock in Goldman Sachs has a dividend of 10% and is callable at any time at a 10% premium; but Buffett also got warrants to purchase $5 billion of common stock with a strike price of $115.00 per share, exercisable for a five-year term (4 years now), and Buffett would effectively get to pocket $61 per share if he exercised those all today at the market (and with a $2.6 billion warrant profit alone).
The General Electric Co. (NYSE: GE) stake was listed only as 7.77 million shares of common stock (about $125 million now), the same as it has been for quarters. Yet last year Buffett came to the rescue with a $3 billion of perpetual preferred stock in a private offering with a dividend of 10% and warrants to purchase $3 billion of common stock. The preferred is callable after 3-years (2 years now) at a 10% premium; the warrants have a strike price of $22.25 and are exercisable for a five-year term (4 years now).
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If you thought you might not see another green energy or less-dirty energy exchange traded-fund, there is a new ETF for you. First Trust Advisors is launching the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ: GRID) today. So far we are seeing a gain in the ETF by 0.8% to $30.39, but on fairly thin trading volume of about 134,000 shares as of 11:20 AM EST. We have seen many other green ETFs, but this is actually the first designated ETF or ETN that is geared solely toward the smart-grid rather than just to green energy. There will be some overlaps in this ETF with others, but that is often the case.
Hirschfeld Industries, Inc. filed after the close on Monday to come public via an initial public offering of up to $150,000,000 in equity being sold via the New York Stock Exchange under the stock ticker “HSFD.” No terms and conditions were set, so that $150 million should be considered as “for filing purposes only.” Stock will be sold both by the company and by shareholders, and proceeds to the company are earmarked for debt repayment and for general corporate purposes.
New research indicates that transportation companies will benefit the most from the government’s huge stimulus investment in infrastructure. 














