Posts for Ticker ‘MCO’

The More Focused, and More Opaque, Buffett & Berkshire Hathaway (BRK-A, BRK-B, BNI, UNP, NSC, GS, GE, TIF, HOG, WMT, COP, XOM, WFC, RSG, DOW, ETN, WBC, MCO, WLP, UNH, GSK, SNY, GCI, WPO)

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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Posted on: November 19, 2009 – 8:59 am in Activist Investor, Bonds, Buffett, Conglomerates, Dividend, Editor's Picks, Infrastructure, Large Cap Stocks, Mergers and Buy Outs, Oil & Gas, Private Equity, Transports, Value Investing, , , , , , , , , , , , , , , , , , , , , , , ,

Buffett & Berkshire Hathaway Q3-2009 Holdings (BRK-A, BRK-B, GCI, GE, GSK, HD, IR, IRM, JNJ, KFT, LOW, MCO, NLC, NKE, NSC, NRG)

Berkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) has its Q3-2009 public equity holdings as of September 30, 2009.  In our group “A to F” we noted some interim changes in the lot.  Here are Warren Buffett’s holdings and accompanying notes for the group ‘G to O.’

  • Gannett Co. (NYSE: GCI) 3.447 million shares, same as before.
  • General Electric Corp. (NYSE: GE) 7.777 million shares is the same as before, but does not include the huge preferred investment from late 2008.
  • GlaxoSmithKline (NYSE: GSK) 1.51 million shares, same as before.
  • Home Depot Inc. (NYSE: HD) 2.757 million, same as last quarter.
  • Ingersoll-Rand (NYSE: IR) 636,600 shares; WAY DOWN from the 7.78 million listed last quarter.
  • Iron Mountain (NYSE: IRM) 3.3722 million shares, same as before.
  • Johnson & Johnson (NYSE: JNJ) was just over 36.91 million shares; Same as last quarter and still well under the 62 million shares at one point in 2008.
  • Kraft Foods (NYSE: KFT) over 138 million; same as last quarter.
  • Lowe’s Companies (NYSE: LOW) 6.5 million shares, same as last quarter.
  • M&T Bank Corp. (NYSE: MTB) 6.71 million shares, same as before.
  • Moody’s (NYSE: MCO) was listed as over 39.2 million shares, but that is WAY DOWN from the 48 million last quarter.  Be advised that he has noted sales and hinted at more sales here.
  • Nalco Holding (NYSE: NLC) 9.0 million shares, same as last quarter.
  • Nike Inc. (NYSE: NKE) 7.641 million shares, same as before.
  • Norfolk Southern (NYSE: NSC) 1.933 million shares, same as before, but we already know Buffett has or is selling out of non-BNSF shares in rail companies.
  • NRG Energy (NYSE: NRG) 7.2 million, same as before.

BUFFETT HOLDINGS A to F

BUFFETT HOLDINGS P to Z

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JON C. OGG

Posted on: November 16, 2009 – 4:48 pm in Activist Investor, Buffett, Conglomerates, , , , , , , , , , , , , , , ,

Buffett & Berkshire Earn Dough (BRK-A, BRK-B, BNI, MCO)

buffettimage-gates-foundationWarren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) has just reported its Q3-2009 earnings ahead of the formal expectations.  This will be perhaps one of the last similar earnings reports with a relative comparisons because of its recent acquisition of Burlington Northern Santa Fe (NYSE: BNI).  The ongoing selling of Moody’s Corp. (NYSE: MCO) will be very limited in comparison to what change the railroad addition will make.

We were expecting the insurance operations to have a stellar quarter because there were no real storms that made landfall this year in hurricane season.  Thomson Reuters figures are hard to rely upon because of two issues.  There are very few ‘official estimates’ and there are many items inside the Berkshire Hathaway earnings that Buffett includes outside of what other companies include.  The consensus estimates was listed as $1,308.25 per share, but that is again a difficult number to use as a formal estimate.  Net earnings per share was $2,087 and operating earnings were $1,325 per share.  The key metrics are what we want to focus on today.

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Posted on: November 6, 2009 – 5:10 pm in Banking, Buffett, Conglomerates, Earnings, , , ,

As Buffett Dumps Moody’s (BRK-A, MCO)

Burning Money PicWarren Buffett is dumping Moody’s Corp. (NYSE: MCO).  We’ll never know until it is already done whether the Oracle of Omaha wants to jettison it entirely from the holdings of Berkshire Hathaway Inc. (NYSE: BRK-A), but he has already lightened up twice in his stake, most recently this last week.  If you listened to Buffett on a CNBC call this morning after his Burlington Northern Santa Fe (NYSE: BNI), a simple interpretation is that he might just be booting all of his Moody’s position.  Our only criticism over this is that Buffett had enough foresight and knowledge that he could have come to the very same conclusion over a year ago at much higher prices.
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Posted on: November 3, 2009 – 12:58 pm in Buffett, Insider Activity, Mergers and Buy Outs, ,

The Unusual Suspects (BEAT, CIT, CIT-PZ, GNW, GFIG, HGSI, GSK, MCO, BRK-A, RVSN, CSCO)

bull-and-bear-image2Earnings season is seeming to wind down here, but that won’t stop the unusual suspects of key equity events and issues to watch this coming week.  We are looking into key issues for the coming week in the stocks of CardioNet, Inc. (NASDAQ:BEAT), CIT Group, Inc. (NYSE: CIT), Genworth Financial Inc. (NYSE:  class=GNW), GFI Group Inc. (NASDAQ: GFIG), Human Genome Sciences Inc. (NASDAQ: HGSI), GlaxoSmithKline Plc (NYSE: GSK), Moody’s Corp. (NYSE: MCO), Berkshire Hathaway Inc. (NYSE: BRK-A), RADVISION Ltd. (NASDAQ: RVSN) and Cisco Systems Inc. (NASDAQ: CSCO).
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Posted on: November 1, 2009 – 11:33 am in After-Hours Activity, Biotech, Buffett, Calendar, Earnings, Financial Stocks, Healthcare, Mergers and Buy Outs, Rumors, , , , , , , , , , ,

US Could Lose “AAA” Rating–Moody’s

uncle samMoody’s (NYSE:MCO) lead analyst covering US debt said that the Amercan goverment could lose its “AAA” rating if it cannot cut the deficit and budget gaps in the next three to four years.

Steven Hess told Reuters: “The Aaa rating of the U.S. is not guaranteed.” The current rating should be stable for at least 18 months.

It was only earlier this year that the UK government got a similar warning from credit agencies. Read More »

Posted on: October 22, 2009 – 7:54 am in Economy,

Media Digest (10/20/2009) Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Apple (NASDAQ:AAPL) beat earnings forecasts.

Reuters:   The IRS is probing some homebuyers’ tax credit gains.

Reuters:   The US is ready to bring more insider trading cases.

Reuters:   More US companies are cutting bonuses. Read More »

Posted on: October 20, 2009 – 4:02 am in Press Digest, , , , , , , , , , , , , , , , , , , , , , , ,

Media Digest 10/1/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Ken Lewis will step down as CEO of Bank of America (BAC)

Reuters:   Cisco (CSCO) bought Tandbeg  for $3 billion.

Reuters:   The IMF raised forecasts for US GDP but warned on its growing debt.

Reuters:   Turnaround experts say the collapse of CIT (CIT) would be a mess. Read More »

Posted on: October 1, 2009 – 4:08 am in Press Digest, , , , , , , , , , , , , , , , , ,

Media Digest 9/30/2009 Reuters, WSJ, NY Times, FT, Bloomberg

newspaperReuters:   China celebrated 60 years of communist rule as a capitalist economy.

Reuters:   The IMF cut global debt write-offs to $3.4 trillion.

Reuters:   CIT (CIT) is close to a deal to give the company to bondholders. Read More »

Posted on: September 30, 2009 – 4:04 am in Press Digest, , , , , , , , , , , , , , , ,

News Digest 9/28/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Solvay sold its drug unit to Abbott (ABT) foe $6.6 billion.

Reuters:   Kraft (KFT) will launch a hostile bid for Cadbury.

Reuters:   The World Bank said not to take the dollar’s role in the global economy for granted.

Reuters:   Crucell got a $302 million investment from J&J (JNJ) Read More »

Posted on: September 28, 2009 – 4:04 am in Press Digest, , , , , , , , ,

Media Digest 9/24/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   The young and affluent in China may become more active consumers.

Reuters:   The G20 is looking to nurture the recovery and add financial safeguards.

Reuters:   Taxpayers may never get back all of their US bailout funds.

Reuters:   The Fed says the recovery in under way. Read More »

Posted on: September 24, 2009 – 3:52 am in Press Digest, , , , , , , , , , , , , ,

Media Digest 9/23/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   A dispute over tires is making trade talks among G20 nations difficult.

Reuters:   Bank of America (BAC) will give Congress documents about Merrill.

Reuters:   Th G20 is looking at ways to rebalance the world’s economy.

Reuters:   China and the US are trying to improve UN climate talks. Read More »

Posted on: September 23, 2009 – 4:02 am in Press Digest, , , , , , , , , , , , , , ,

Media Digest 9/21/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Obama is asking the G 20 to reshape the global economy.

Reuters:   Congress will demand details of the Bank of America/Merrill Lynch deal.

Reuters:   Holiday spending is expected to be flat.

Reuters:   It may be too late to catch the turnaround in eBay’s (EBAY) stock. Read More »

Posted on: September 21, 2009 – 4:01 am in Press Digest, , , , , , , , , , ,

Moody’s: Some Home Price Won’t Rebound Until 2030

houseMoody’s (MCO) forecasts that some home prices may not return to their pre-recession levels until 2030. This means that hundreds of thousands of Americans may find it impossible to sell their houses without making payments to their banks to cover underwater home loans. Read More »

Posted on: September 19, 2009 – 8:07 am in Housing,

The Unusual Suspects (APP, BRK-A, CPB, MTXX, MCO, MHP, RMBS, QQQQ, GDL, UNH)

bull-and-bear-imageIt is the weekend, albeit a long three-day weekend for Labor Day.  Earnings season is done, gone, bye-bye, but this coming week there are going to be some key events and key stocks to watch including American Apparel Inc. (AMEX:APP), Campbell Soup Co. (NYSE: CPB), Matrixx Initiatives Inc. (NASDAQ: MTXX), Moody’s Corp. (NYSE: MCO), McGraw-Hill (NYSE: MHP), Rambus, Inc. (NASDAQ: RMBS).  On bigger market pundit calls, we want to watch the key ETF and ETN products of PowerShares QQQ (NASDAQ: QQQQ), the Semiconductor HOLDRS (NYSE: SMH), and Technology Select Sector SPDR (NYSE: XLK), SPDR Gold Shares (NYSE: GLD), the Market Vectors Gold Miners ETF (NYSE: GDX), and the Ultra Gold ProShares (NYSE: UGL).  Elsewhere, there is the death of the PowerShares DB Crude Oil Double Long ETN (DXO).  Sears Holdings Corporation (NASDAQ: SHLD) will also be key to watch because of a response to a nasty Barron’s article.

Read More »

Posted on: September 5, 2009 – 8:31 am in Calendar, Charts, Commodities, Labor & Unions, Mergers and Buy Outs, Metals, Rumors, Trading Alert, , , , , , , , , ,

Media Digest 9/3/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   The sell-off in Chinese stocks may be overdone based on earnings.

Reuters:   A report blamed the SEC for not doing its job investigating Madoff.

Reuters:   The Fed says the risks to the American economy have dropped.

Reuters:   A Pfizer (PFE) whistleblower made more than $51 million. Read More »

Posted on: September 3, 2009 – 4:02 am in Press Digest, , , , , , , , , , , , , , , , , , , ,

Berkshire Hathaway & Buffett Q2-2009 Holdings G to O (BRK-A, GCI, GE, GSK, HD, IR, IRM, JNJ, KFT, LOW, MTB, MCO, NLC, NKE, NSC, NRG)

Buffett ImageBerkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) has released its Q2-2009  public equity holdings as of June 30, 2009.  There are some portfolio changes that have been seen here from the end of Q1 and we have broken these down into 3 groups of ‘A to F’ and  ‘G to O’ and ‘P to Z’ so these are easier to see on one page.  Here are Warren Buffett’s holdings and accompanying notes for the group ‘G to O.’

  • Gannett Co. (NYSE: GCI) 3.447 million shares, same as before.
  • General Electric Corp. (NYSE: GE) 7.777 million shares is the same as before, but does not include the preferred investment from late 2008.
  • GlaxoSmithkline (NYSE: GSK) 1.51 million shares, same as before.
  • Home Depot Inc. (NYSE: HD) 2.757 million, actually less than the 3.7 million shares in Q1.
  • Ingersoll-Rand (NYSE: IR) 7.78 million, same as last quarter.
  • Iron Mountain (NYSE: IRM) 3.3722 million shares, same as before.
  • Johnson & Johnson (NYSE: JNJ) was just over 36.91 million shares; ABOVE the 32.5 million last quarter and above the 28.6 million in Q4.  This is still well under the huge 62 million shares last year.
  • Kraft Foods (NYSE: KFT) over 138 million; looks roughly the same as before.
  • Lowe’s Companies (NYSE: LOW) 6.5 million shares, same as before unlike at Home Depot.
  • M&T Bank Corp. (NYSE: MTB) 6.71 million shares, same as before.
  • Moody’s (NYSE: MCO) 48 million shares are listed as the same as before, however we already know that Buffett CUT THIS SINCE JUNE 30 and may cut it further.
  • Nalco Holding (NYSE: NLC) 9.0 million shares, same as Q1 after the Q1 position had been raised.
  • Nike Inc. (NYSE: NKE) 7.641 million shares, same as before.
  • Norfolk Southern (NYSE: NSC) 1.933 million shares, same as before.
  • NRG Energy (NYSE: NRG) 7.2 million, same as before.

BUFFETT HOLDINGS ‘A to F’

BUFFETT HOLDINGS ‘P to Z’

JON C. OGG
AUGUST 14, 2009

Posted on: August 14, 2009 – 5:02 pm in Buffett, , , , , , , , , , , , , , , ,

Warren Buffett’s Berkshire Hathaway (BRK-A) Hits $100,000

OMGThe stock price of Berkshire Hathaway (BRK-A) hit $100,000 today, up from a 52-week low of $70,000, but still well off its period high of $147,000.

Berkshire’s chief Warren Buffett has made a number of shrewd moves over the last year that have paid the company handsomely. The most visible of these is probably an investment in Goldman Sachs (GS), which included warrants for shares of the bank at $115 a share. Those warrants are now in the money at a level that would make them worth $2 billion at today’s stock price. Read More »

Posted on: August 3, 2009 – 7:51 pm in Conglomerates, , , , ,

More Stocks For Buffett To Unload (BRK-A, MCO, COP, CEG, GCI, WPO, MTB, WBC)

Buffett ImageHow frequently has Warren Buffett  been bashed by the media over Berkshire Hathaway Inc.’s  (NYSE: BRK-A) lackluster performance ?  What was interesting to see is his stake being lowered in Moody’s Corp. (NYSE: MCO).  The only thing that was surprising to us was that it took the Oracle of Omaha this long to begin selling these shares.  Because Buffett is such a large stakeholder, we do expect that he’ll always hold some shares.  Conversely, we think he’ll continue to lighten up his stake in Moody’s.  Along those lines, we reviewed Buffett’s holdings and found several more stocks that he might want to consider selling some or all of his stake.

Some of these positions could include ConocoPhillips (NYSE: COP), Constellation Energy Group, Inc. (NYSE: CEG), Gannett Co. Inc. (NYSE: GCI), Washington Post Co. (NYSE: WPO), M&T Bank Corp. (NYSE: MTB) and WABCO Holdings (NYSE: WBC).  There are others, such as his stakes in drug and health care sectors that could have been mentioned, but those big directional bets may have to wait until after health care reform is enacted.   As you will see, we listed the reasons that Buffett should or could cut the stakes.
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Posted on: July 27, 2009 – 11:48 am in Activist Investor, Buffett, Insider Activity, Value Investing, , , , , , , ,

Buffett Dumps Moody’s (MCO, BRK-A)

Bull and Bear ImageMoody’s Corporation (NYSE: MCO) just got a rather interesting insider selling shares, none other than Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A).  The listed entities were Berkshire itself, National Indemnity, OBH, and GEICO.  The new stake is down to 16.98% from roughly 20.2%.  The filing outlines the terms for more shares to possibly be sold ahead.  Frankly, this should have come long ago.
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Posted on: July 22, 2009 – 5:09 pm in Analyst Calls, Bonds, Buffett, Business Services, Insider Activity, ,