Berkshire/Buffett – headlines from this weekend’s annual meeting
· BRK’b earnings – net income swung to a $3.63 billion first-quarter profit from a year-earlier $1.53 billion loss, helped by an improving economy and gains from investments and derivatives. Operating earnings rose 30 percent to $2.22 billion from $1.71 billion, reflecting "a pretty good uptick" in business activity – Reuters
· GS/Goldman – strong defense of the company from Buffett – remains happy w/his investment in the company and w/CEO Blankfein. Buffett said the SEC charges weren’t serious enough to raise reputational risks for Goldman. Berkshire has no plans to sell its stake in Goldman. Reuters
· GS/Goldman – Buffett thinks Goldman is doing a poor job on the PR front but doesn’t think the company committed fraud. CNBC http://www.cnbc.com//id/36887333
· Ratings agencies (MCO, MHP) – despite being a recent seller of Moody’s shares, Buffett says the companies have great business models and a lot of pricing power. WSJ
· Buffett says the pace of sovereign borrowing recently has made him skeptical about the ability of currencies to hold their value (WSJ)
· Buffett says planned derivatives regulations may spar Berkshire from having to post additional collateral; “if the bill passes tomorrow we won’t have to post a dime”; if more sweeping legislation was passed, then Berkshire would have to post billions of additional dollars worth of collateral; Buffett says Berkshire will comply w/whatever law is passed and will have no problem doing so Bloomberg
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