• American Express Co. (NYSE: AXP) over 151.6 million shares, looks same as before.
• Bank of America Corp. (NYSE: BAC) 5,000,000 shares; same as last quarter but lower than the 9.1 million shares reported in June.
• Burlington Northern Santa Fe (NYSE: BNI) 70.089 million shares, higher than the 63,785,418 shares reported previously but we already knew this one was higher from prior transactions.
• Carmax Inc. (NYSE: KMX) 17.63 million, down from 18.444 million last quarter.
• Coca Cola (NYSE: KO) right at 200,000,000 shares, same as before.
• Comcast (NASDAQ: CMCSA) 12 million shares, same as before.
• Comdisco Holdings (NASDAQ: CDCO) just over 1.5 million shares, same as before.
• ConocoPhillips (NYSE: COP) 79.896 million, above the 59.688 million in one unit, but was previously about 83.9 million total.  Hard to know if this is a real change or just more reporting or more/less units….
• Constellation Energy Group (NYSE: CEG) 19.897 million shares, but this may have already ended after the last merger.
• Costco Wholesale (NASDAQ: COST) 5.254 million shares, same as before.
• Gannett Co. (NYSE: GCI) 3.447 million shares, same as before.
• General Electric Corp. (NYSE: GE) 7.777 million shares, same as before but that does not include the 10% interest bought last year.
• GlaxoSmithkline (NYSE: GSK) 1.51 million shares, same as before.

BUFFETT HOLDINGS “H to R”

BUFFETT HOLDINGS “S to Z”

Jon C. Ogg
February 17, 2009

• Home Depot Inc. (NYSE: HD) 3.7 Million shares; same as before but down from June.
• Ingersoll-Rand (NYSE: IR) 7.78 million, above the 5.6366 million before.
• Iron Mountain (NYSE: IRM) 3.3722 million shares, same as last quarter.
• Johnson & Johnson (NYSE: JNJ) 28.6 million shares, down by more than half from about 62 million last quarter.
• Kraft Foods (NYSE: KFT) over 138 million.  We had 148 million last time but that could have been a carrying difference we didn’t catch.
• Lowes Companies (NYSE: LOW) 6.5 million shares, same as last quarter.
• M&T Bank Corp. (NYSE: MTB) 6.71 million shares, same as last quarter.
• Moody’s (NYSE: MCO) about 48 million shares, same as before but may actually be larger since the 12/31 reporting.
• Nalco Holding (NYSE: NLC) 8.730 million shares; NEW HOLDING from last quarter.
• Nike Inc. (NYSE: NKE) 7.641 million shares, same as last quarter.
• Norfolk Southern (NYSE: NSC) 1.933 million shares, still same.
• NRG Energy (NYSE: NRG) 7.2 million, up from 5 million last quarter.
• Procter & Gamble (NYSE: PG) 96.3 million, down from more than 105.8 million last quarter.

BUFFETT HOLDINGS “A to G”
BUFFETT HOLDINGS “S to Z”

Jon C. Ogg
February 17, 2009

• Sanofi Aventis (NYSE: SNY) more than 3.9 million shares, same as before.
• Sun Trust Bank (NYSE: STI) more than 3.2 million shares, same as before.
• Torchmark Corp. (NYSE: TMK) looks roughly the same at 2.82 million.
• US Bancorp (NYSE: USB) about 67.6 million shares, down from over 72.9 million last quarter.
• USG Corp. (NYSE: USG) 17.072 million shares, looks same as last quarter.
• Union Pacific Corp. (NYSE: UNP) 8.9 million shares, same as before.
• United Parcel Service (NYSE: UPS) 1.429 million shares, same as before.
• WABCO Holdings (NYSE: WBC) 2.7 million shares, same as before.
• Wal-Mart Stores Inc. (NYSE: WMT) over 19.9 million shares, same as before.
• Washington Post (NYSE: WPO) over 1.72 million shares, same as before.
• Wells Fargo (NYSE: WFC) roughly 290.4 million shares, looks same as before.
• Wellpoint Inc. (NYSE: WLP) 4.7773 million shares, same as before.
• Wesco Financial Corp. (NYSE: WSC) 5.7 million shares, same as before.

BUFFETT HOLDINGS “A to G”
BUFFETT HOLDINGS “H to R”

Jon C. Ogg
February 17, 2009

The SEC filing shows that the notes were issued Feb. 12, 2009 in the amount of $250 million of its 10.00% Series A-2009 and Series B-2009 Senior Notes to subsidiaries of Berkshire Hathaway Inc.

The transaction is also exempt from the registration requirements of the Securities Act of 1933.

The “Series A-2009 Notes” are $125 million and mature on February 13, 2017.   The Series B-2009 Notes are $125 million and mature on February 13, 2019.

The  proceeds are earmarked for the refinancing of existing debt and for general corporate  purposes.  These also require lump sum repayments at maturity and include specific financial covenants, ratios, and limit certain payments, investments, and debt.

Jon C. Ogg
February 13, 2009

These are senior notes set to mature in 2018, and are now convertible into USG common shares at the holders’ election.  In other words, at Buffett’s discretion.  These have an initial conversion price of $11.40 per share, and the notes will continue to bear an initial rate of 10% interest.

Back in November, we noted that Buffett was taking $300 million of the notes and Fairfax Financial Holdings Limited (NYSE: FFH) was taking $100 million.  This makes give Berkshire Hathaway the controlling stake.  Holders almost had to approve this if they wanted to get Buffett further on board.  If approval was not obtained before the 135th day after closing of the sale of the notes, then the rate on the notes would have come to 20% per year until after shareholder approval.

Shares got a big pop on the Buffett news in November and were up around $7.66 then.  Shares are up 2% here at $8.00 today.  The 52-week high is more than $100.00.

Jon C. Ogg
February 9, 2009

Barron’s noted roughly a 30% rise since August 1 and a pre-drop market cap of about $220 Billion as the sixth largest US company.  Barron’s noted:

• "Its stock now appears overpriced, reflecting a sizable premium for the skills of the 77-year-old Buffett. What’s Berkshire worth? Our estimate, based on several valuation measures, is around $130,000 a share – about 10% below the current quote."

We do agree with Barron’s that Wall Street (and us) would like to see his "whale of a deal" and we even went as far as to cover which stocks could fit the profile and take up some 75% of the cash positions at Berkshire Hathaway.   

The A-Shares closed down 4.6% at $136,400.00, and its 52-week trading range is $103,800.00 to $151,650.00.  The B-shares, the Baby-Buffetts, fell some 4.8% to $4,525.00.  The 52-week trading range is $3,460.00 to $5,059.00.  This now represents a 10% correction in Berkshire Hathaway stock from its yearly highs.

But where we disagree with Barron’s is that Berkshire Hathaway is done or overvalued.  Every time throughout Berkshire Hathaway’s history that shares have pulled back 10% it has represented a buying opportunity.  On days that the market rises, Berkshire Hathaway tends to rise.  On days the market is weak, traders tend to look to Berkshire Hathaway as a safe bet stock to hide money.  Even if Buffett is 77 years old and no heir has been declared, it’s just too hard to bet against the old guy.  He’s too down to earth and too forward about maintaining everything above the table.

Berkshire Hathaway has a lot riding on insurance and reinsurance, and Buffett makes no secret that the company has been lucky enough to avoid two straight hurricane seasons with any major US damage. 

The hit from Barron’s may have just opened up another opportunity for those whom have wanted to own Berkshire Hathaway stock.  Barron’s is right and we are wrong OR we’re right and Barron’s is wrong.  We’ll know down the road.

Jon C. Ogg
December 17, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.

Shares of Burlington Northern closed at $80.33 on Monday, and shares are indicated at $81.00 to $82.00 in early pre-market indications on Tuesday.  This is actually still in the middle of the $64.75 to $95.47 trading range seen over the last 52-weeks.   

With just over 52 million shares now held, this latest transaction at an implied $81.00 stock value would have an implied market value of over $4.2 Billion.  We still have yet to see a ‘whale of a deal’ from Buffett, and the total market cap of this one is north of $28 Billion.  Warren & Co. had nearly $50 Billion in purely cash and liquidity in its arsenal as of June 30, and that is before looking at its other assets that could be converted to cash or equivalents in a few days if it sold off some of its publicly traded stocks.

Jon C. Ogg
August 28, 2007

Bank of America (BAC), up 1.7% today at $48.68. June 29 close: $48.89

Wells Fargo & Co. (WFC), up 1.2% at $34.07. June 29 close: $34.86.

U.S. Bancorp (USB), up 1.7% at $30.05. June 29 close: $32.95.

Interestingly enough, these have all held their ground better than the overall market since that cut-off date.  Maybe the Oracle of Omaha knows more than the market afterall.  Berkshire Hathaway (BRK-A) shares are at 111,100 today and closed at 109,475 on June 29.  Maybe the Oracle himself is a better investment than his underlying picks.

We made a list of the potential "whale of an acquisition" targets that fit certain ‘Berkshire" criteria after Warrnen Buffett made his statement.  So far, he’s been dark and quiet and has yet to do any such deal.  He’s probably also watching Dean hoping it heads more west and out range of much of the reinsurance-exposure areas where a hurricane would hit his pocketbook.

Jon C. Ogg
August 15, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Warren Buffett is sitting on $39.936 Billion in cash as of the June 30 quarter end.  It holds $24.9 Billion in fixed income securities and $73.6 Billion in equity securities, and total assets are listed as $269 Billion.  Total liabilities are listed as $151.34 Billion.

Buffett said he’d love to do a WHALE OF AN ACQUISITION, so what is he waiting for?  He isn’t hurting for cash.  Here was a list of US stocks we gave in MAY that we felt could fit that bill for a whale of a deal.  Maybe he’s waiting to see if he gets through hurricane season with barely any scrapes from insurance and reinsurance losses.

Jon C. Ogg
August 3, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

This one got quite a recent following after Jim Cramer labeled it as potentially the ‘next Berkshire Hathaway’ recently at the end of June.  Since then shares have slid with the weak markets.  Shares are actually now in the lower-half of the $27.08 to $43.82 trading range of the last 52-weeks.  Maybe Warren Buffett is jealous.

The company on July 31 already said it would spin-off 60% of its infrastructure unit called Brookfield Infrastructure Partners L.P. It will spin the stake off to holders of its Class A stock.  Brookfield will retain an approximate 40% equity interest in Brookfield Infrastructure and will manage its operations under a long-term management agreement.  Brookfield Infrastructure intends to seek a listing for its units on the New York Stock Exchange.

Brookfield will implement the spin-off by way of a special dividend currently estimated to be approximately US$1.00 per Brookfield Class A Share, or approximately $600 million in aggregate for 60% of the issued and outstanding interests in Brookfield Infrastructure.  Merrill Lynch & Co. and Citigroup are acting as financial advisors in connection with the spin-off.

According to the company: Brookfield Infrastructure will serve as the primary vehicle through which Brookfield will own and operate certain infrastructure assets on a global basis. Brookfield Infrastructure will focus on high quality, long-life assets that generate stable cash flows, require relatively minimal maintenance capital expenditures and, by virtue of barriers to entry and other characteristics, tend to appreciate in value over time. Its initial operations will consist of electricity transmission systems and timberlands, but Brookfield Infrastructure will seek acquisition opportunities in other sectors with similar attributes and where Brookfield’s operations oriented approach can be deployed to add value.

Jon C. Ogg
August 2, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.