Berkshire Hathaway class B

Brendan Burgess said:
Hi landlord

I have shares in CRH. Some people think that as it's denominated in euro I am only exposed to the euro.

In fact, CRH earns its profits in euro, dollars, sterling and a host of other currencies. So I get natural diversification that way.

Likewise, Berkshire's investee companies might be all based in America, but if they export a good amount of their output, then you have exposure to other currencies.

Brendan
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People think they get diversification this way but they more than often don't because the company will themselves hedge the FX exposure of foreign earnings as much as possible. I have no idea what CRH's hedging policy is but it might be worth while checking it out to see.
 
Hi Sunny

I see comments from plcs all the time along the lines of "our earnings are higher/lower due to the fall/rise in the euro". Any hedge could presumably be only for a limited period of time.

Brendan
 
"Curious as to whether any of the regulars here hold any class a or b stocks in Berkshire or, if not, why not."

Current price for 1 (one) class a share is $210,760

Current price for 1 (one) class b share is $140.29

If think that for most of us its class b shares if any at all.
 
Jim2007 said:
....I can think of at least three Berkshire money managers capable of taking over and indeed at least one of them has been out performing Buffet for some time now..
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But, are the likely to stick around, perhaps take over when Buffet and some of the elder statesmen move on, or perhaps be poached by a competiting firm (and dare I suggest it, possibly at a future time when they are needed most by BH) ?

There are risks here too, its not all comfort Jim2007 :)
 
MrEarl said:
But, are the likely to stick around, perhaps take over when Buffet and some of the elder statesmen move on, or perhaps be poached by a competiting firm (and dare I suggest it, possibly at a future time when they are needed most by BH) ?

There are risks here too, its not all comfort Jim2007 :)
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This is were you need to do your own research. These men have been around for well over 20 years and have significant holdings in BH and furthermore Buffet has already spoke about this.
 
MrEarl said:
Hello,

Does anyone know if Warren Buffett & Charlie Munger have evern given any public comfort regarding succession planning, at Berkshire Hathaway ?

From the information available on the Wall Street Journal website here , it seems to me that there is a significant risk to the Board, given a number of it's members are, eh "mature" gentlemen.
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From the 2014 shareholders letter

Our directors believe that our future CEOs should come from internal candidates whom the Berkshire board has grown to know well. Our directors also believe that an incoming CEO should be relatively young, so that he or she can have a long run in the job. Berkshire will operate best if its CEOs average well over ten years at the helm. (It’s hard to teach a new dog old tricks.) And they are not likely to retire at 65 either (or have you noticed?).
Both the board and I believe we now have the right person to succeed me as CEO – a successor ready to assume the job the day after I die or step down.
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Steven
www.bluewaterfp.ie
 
Disclosure, just in case... I hold no position in BH, nor am I likely to do so in the future.
 
Thanks Steven.

Has the person who is being "groomed" actually been named, do you (or anyone else) happen to know ?
 
I don't follow the BH or the people in it, I just read Buffett's annual shareholder letter as it provides great lessons on how to invest successfully. I haven't seen his name in the letter.
 
MrEarl said:
Has the person who is being "groomed" actually been named, do you (or anyone else) happen to know ?
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Research... remember! I believe that Buffett has at least mentioned one of the three I referred to, but I can't remember if it was at the AGM or in the annual report. In doing so he mentioned that this person had out performed him on several occasions and indeed on one occasion if he had not then BH would have actually been down as Buffett turned in a negative result! Now it is up to you to do the digging.
 
Jim2007 said:
Research... remember! I believe that Buffett has at least mentioned one of the three I referred to, but I can't remember if it was at the AGM or in the annual report. In doing so he mentioned that this person had out performed him on several occasions and indeed on one occasion if he had not then BH would have actually been down as Buffett turned in a negative result! Now it is up to you to do the digging.
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You don't have to dig very much. Put "Buffett's successor" into Google and you'll even get a picture of him!
 
Brendan Burgess said:
Hi landlord

I have shares in CRH. Some people think that as it's denominated in euro I am only exposed to the euro.

In fact, CRH earns its profits in euro, dollars, sterling and a host of other currencies. So I get natural diversification that way.

Likewise, Berkshire's investee companies might be all based in America, but if they export a good amount of their output, then you have exposure to other currencies.

Brendan
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The exposure is only to the level of unhedged position. (or if their Treasury team are actively taking bets on currencies).

Brendan Burgess said:
I see comments from plcs all the time along the lines of "our earnings are higher/lower due to the fall/rise in the euro". Any hedge could presumably be only for a limited period of time.

Brendan
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It depends on how much of their exposure they hedge. Part of that is also dependent on how certain they are of cashflows outside their reporting currency (of the parent).They may only hedge 20%/50%/80% depending on how certain they are of the inflows/outflows.

there could be a number of other one offs that occur that they cant foresee or hedge in advance.
 
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