ISCAR Metalworking
From Wikipedia, the free encyclopedia

Iscar Metalworking is a toolmaking company based in Israel, founded by Stef Wertheimer.

The company was founded in 1952 in a wooden garage behind the home of Stef Wertheimer. After several years of steady expansion, the company headquarters moved to its current site in the Tefen Industrial Zone, situated in Israel's Western Galilee.

Iscar has expanded from a single marketing and manufacturing facility in Israel to a multinational company with representation in over 50 countries. Its production facilities are highly automated; at night, a single employee runs the plants on a computer, from home.[1]

In May 2006, Berkshire Hathaway, chaired by Warren Buffett, purchased an 80% stake in Iscar for US$4 billion. It was the first time in Berkshire's long history that it acquired a company based outside of the United States.

In 2008, Mr. Buffett called the acquisition of Iscar a "dream deal" that surpassed all his expectations. He personally attended the inauguration of a new production plant in Dalian, China.[2]

The CEO of Iscar is Jacob Harpaz. The company has 140 subsidiaries in 65 countries. [3]
[edit]
International Offices

Iscar has production facilities in Israel, France, Argentina, Germany, Brazil, Italy, The United States of America, Netherland, Spain, South Korea, Switzerland, Turkey and the United Kingdom.[4]

Clayton Homes
From Wikipedia, the free encyclopedia

Clayton Homes, a component company of Berkshire Hathaway, is the United States' largest manufacturer of manufactured housing. The company is vertically integrated; it builds, sells, finances, leases, and insures manufactured and modular homes. Clayton's corporate headquarters are in Maryville, Tennessee. It operates 35 manufacturing plants in the United States and markets its products in 49 states through 448 company-owned retail outlets and more than 1300 independent retailers.[1][2] Its subsidiary Vanderbilt Mortgage and Finance, Inc., specializes in mortgages for manufactured homes, providing more than $11.0 billion in loans for more than 275,000 customers. Another subsidiary provides insurance for 160,000 families.[1]

The company was founded by Jim Clayton in 1966. The company went public in 1983, trading on the New York Stock Exchange.[3] It was acquired by Berkshire Hathaway Inc. in 2003 for $1.7 billion[4] Kevin T. Clayton, son of the founder, is current President and CEO.[2]

According to its website, Clayton owns and operates 68 manufactured housing communities and 12 subdivisions[1]. However, in July 2007 Clayton contracted to sell 65 manufactured housing communities in 11 states.[5] They produce homes under the brand names of Cavalier Homes, Clayton Homes, Crest Homes, Gideon Homes, Giles Industries, Golden West Homes, Karsten Company, Marlette Homes, Oakwood Homes, Schult Homes and Southern Energy Homes.

Clayton manufactures one- and two-story homes that range from 500 sq ft (46 m2). to 2,400 sq ft (220 m2). in floor area and from $40,000 to more than $100,000 in price.[2]

We´ve helped people just like you buy manufactured homes since 1934, building more than 1.5 million homes and winning multiple awards for design and construction. We build, sell, finance, lease and insure manufactured and modular homes as well as relocatable commercial and educational buildings. We have 12,000 team members, 35 home building facilities and more than 1,800 home centers. We also finance more than 325,000 customers and insure 160,000 families. Clayton Homes also owns and operates 18 subdivisions. In 2003, Warren Buffett and Berkshire-Hathaway, Inc. acquired Clayton Homes.

2003
Attracting the attention of Mr. Buffett.

Clayton becomes part of Berkshire Hathaway, Inc., the holding company founded by legendary businessman Warren Buffett. The merger broadened Clayton’s lending stability and ensured access to financing for homeowners. Joining forces with Buffett meant big things for the future, but it also kept Clayton’s local roots intact, with management, headquarters and 7,000 loyal team members staying in place.

Benjamin Moore & Co.



Benjamin Moore & Co. is an American company that produces paint. It is owned by Berkshire Hathaway. Founded in 1883, Benjamin Moore is based in Montvale, NJ.
[edit]
History

In 1883, Benjamin Moore and his brother Robert opened Moore Brothers in Brooklyn, New York. They started with $2,000 and one product, "Moore's Prepared Calsomine Finish," which was sold exclusively through independent retailers. Moore Brothers built their company on Benjamin Moore's belief in "the exercise of intelligent industry in the spirit of integrity."

Today, Benjamin Moore & Co., a Berkshire Hathaway company, is a manufacturer and retailer of coatings and provider of related goods and services for decoration and preservation. Benjamin Moore & Co. manufactures at 7 plants, distributes from 22 facilities, and sells paints, stains, and finishes through a network of more than 4,000 independent retailers across North America.

Mr. Warren Buffett (right), CEO of Berkshire Hathaway, and Mr. Harrold Melton, President of Acme Brick Company sat down after Acme's acquisition by Berkshire in 2000 to discuss Acme Brick's role--past and future--in helping build America.

HARROLD E. MELTON: Warren, being a part of Berkshire Hathaway is really exciting. Talk about unlimited potential! What were some of your initial thoughts when you first considered acquiring Acme?

WARREN E. BUFFETT: Harrold, I must tell you that I was delighted to find a company with such a long record of providing quality products and services. Everything about Acme defines the type of company in which we like to invest. Your business is solid and easy to understand, just like Coke®, Gillette®, GEICO® and American Express®. We place a high value on investing in companies with strong brand positions in their markets.

While reading Acme's history, I was amazed at all of the challenges that Acme has had to address in the years since having been founded in 1891. How did that happen, I asked myself. As I kept reading, the answer became clear. Time and again over the decades, Acme people have consistently stepped forward, not only in times of crisis but also in times of tremendous opportunity. These are people who have always been committed to the company's success and who have always understood the importance of the work that they were doing.

HEM: Warren, few types of work are more meaningful than construction. Can you think of another industry that contributes as much to our nation's permanent wealth as the creation of beautiful, enduring places of shelter for families and businesses? When you think about it, the loyalty that people feel for our company is perfectly understandable.

WEB: Here is one fairly clear indication of Berkshire Hathaway's management approach to the operation of our member companies. During the past 34 years, Berkshire Hathaway has never had an operating officer leave except for retirement or death. In fact, the great majority of our subsidiaries are still run by the same executives who brought them to Berkshire in the first place. We buy well-run companies and let them run.

HEM: Warren, that's quite an achievement during this era of constant managerial change. Does this philosophy also extend to Berkshire Hathaway's retention of the companies that they acquire?

WEB: Yes. We buy companies to keep. I have an enormous reluctance to sell our wholly owned businesses under almost any circumstances. I think of my life's business work as a large canvas. I'm painting a picture of a very complete group of fundamentally sound businesses. These companies will continue to serve our nation for many decades to come. Acme will occupy a prominent place on that canvas.

I'm very excited to be a participant in your challenging, critically important business of helping build our nation's infrastructure.

HEM: By the way, Warren, I know from reading your annual reports that people suggest new acquisitions for Berkshire--and that you occasionally act on their suggestions. If you received a tip about a manufacturer of artificial stucco sheathing, what would be your response?

WEB: Not a chance.

Acme Brick

Acme Brick Company is an American manufacturer and distributor of brick and masonry-related construction products and materials. Founder, George E. Bennett (October 6, 1852–July 3, 1907), chartered the company in Alton, Illinois as the 'Acme Pressed Brick Company' on April 17, 1891. The company grew to become the largest American-owned brick manufacturer by the mid-20th century, was the first of its type to offer a 100-year limited guarantee to its customers, and was acquired by Berkshire Hathaway, Inc. on August 1, 2000.Contents [hide]
1 History
2 Manufacturing plants
3 Sales offices
4 References
5 External links
6 See also

[edit]
History
In 1890, Acme Pressed Brick Company was established fifteen miles (24 km) southwest of Weatherford near present-day Farm Road 113, in southwestern Parker County, TX. The company town that evolved from the establishment of the manufacturing plant was called 'Bennett'. The community included Acme Brick homes (for 100 employees and their families), a church, a public school, and a general store.
In 1916, Acme Pressed Brick stockholders elected new officers, applied for a Texas charter, began doing business as Acme Brick Company, and dissolved the company chartered in Illinois. Walter R. Bennett (George E. Bennett's son) was elected the first president of the newly renamed Acme Brick Company.
In 1968, a merger of the Acme Brick Company and the Justin Boot Company resulted in the formation of the First Worth Corporation.
In 1972, First Worth Corp. changed its name to Justin Industries, Inc., a 'parent' corporation who would grow to acquire many 'children' companies.
In 1976, Featherlite (then known as Kingstip-Featherlite) was acquired. Featherlite began as a Texas-based, privately held company in 1949. Featherlite began acquiring concrete block companies in 1953 and continued its expansion over the years - now operating 7 block producing facilities and 2 cement bagging facilities in Texas and 3 other locations.
In 1981, as housing starts hit a 35-year low, Acme built inventory: 400 million brick were manufactured by the year's end.
In 1984, record housing starts propelled Acme to record sales years in 1983 and 1984.

Acme Brick stamps its logo into the end of select bricks.
In 1987, Acme began stamping its logo on one end of select residential brick. This tradition in brand recognition continues today.
In 1993, Troy Aikman, Hall of Fame quarterback for the Dallas Cowboys football team, became an Acme Brick spokesperson - initially in radio and print advertising, and later on television.
In 1994, American Tile Supply, a tile distributor and retailer in Texas, was acquired.
In 1997, Fort Worth-based Innovative Building Products, developer and manufacturer of a mortarless installation system for glass block windows, skylights, shower enclosures, and floors, was acquired.
In 2000, the Justin Industries Board of Directors approved the sale of the publicly traded company to Warren Buffett and Berkshire Hathaway. The boot companies and the building companies were split to form Justin Brands and Acme Building Brands as separate entities. At the time of the acquisition, Acme Building Brands was 'parent' to the following four 'child' companies:
Acme Brick Company, the leading domestically owned United States manufacturer of face brick.
Featherlite Building Products Corporation, the leading Southwest producer of concrete masonry products.
American Tile Supply Company, a major Texas distributor of ceramic and marble floor and wall tile.
Justin Brands - Justin Boot Company, Nocona Boot Company, Tony Lama Company, and Chippewa Shoe Company.
In 2001, Acme Brick set a new company record for shipments - exceeding 1 billion company-manufactured bricks shipped.
In 2003, Acme Brick's residential products started carrying the Good Housekeeping Seal.

Brick mock-up panels are sometimes created to aid commercial customers in the selection process. These bricks are likely candidates for the new Acme Brick Company Headquarters building.
On October 6, 2006 (October 6th was also the birthday of Acme's founder, George Bennett), Acme Brick broke ground for the company's new headquarters building to be located in southwest Fort Worth. The 77,000-square-foot (7,200 m2), three-story building was completed in 2007.
[edit]
Manufacturing plants

Acme Brick manufactures brick (primarily for U.S. customers) at plants located in six states:
Clarksville, Arkansas (known as Acme's Eureka Brick Plant)
Fort Smith, Arkansas
Jonesboro, Arkansas (known as Acme's Wheeler Plant)
Malvern, Arkansas (Acme has 3 plants in Perla; Perla Westgate, Perla Eastgate, and Acme's Ouachita Plant)
Castle Rock, Colorado (known as Acme's Denver Brick Plant)
Kanopolis, Kansas
Weir, Kansas
Holly Springs, Mississippi
Oklahoma City, Oklahoma
Tulsa, Oklahoma
Bridgeport, Texas
Denton, Texas
Elgin, Texas (Acme has 2 plants in Elgin)
Garrison, Texas
Malakoff, Texas (known as Acme's Texas Clay Plant - Acme has 2 plants in Malakoff)
McQueeney, Texas
Millsap, Texas (Acme's first plant - also known as the 'Bennett Plant')
Sealy, Texas
Springfield, Minnesota (known as the 'Acme Ochs Plant')
[edit]
Sales offices

Acme Brick sells manufactured and purchased products from sales offices located in ten states:
Arkansas (Fort Smith, Jonesboro, North Little Rock, Russellville, and Springdale)
Colorado (Castle Rock)
Kansas (Olathe and Wichita)
Louisiana (Alexandria, Baton Rouge, Lafayette, Lake Charles, Monroe, New Orleans, and Shreveport)
Mississippi (Holly Springs)
Missouri (Joplin, Maryland Heights, and Springfield)
New Mexico (Las Cruces)
Oklahoma (Oklahoma City and Tulsa)
Tennessee (Jackson and Memphis)

Texas (Abilene, Amarillo, Austin (Round Rock), Bryan, Beaumont, Corpus Christi, Denton, El Paso, Euless, Houston, Lubbock, Longview, Midland, San Antonio, San Angelo, Temple, Texarkana, Tyler, Waco, and Wichita Falls)

Type Private
Founded 1891, Bennett, Texas, USA
Headquarters Fort Worth, Texas, USA
Key people Dennis Knautz, President and CEO
Industry Manufacturing and Distribution
Products Brick, Tile, Concrete Block, Glass Block Systems, and Cut Natural Stone
Owner(s) Berkshire Hathaway
Employees 2,913 (as of 4/19/2006)
Website www.brick.com

Blue Chip Stamps
From Wikipedia, the free encyclopedia

Blue Chip Stamps started as a trading stamps company called "Blue Chip Stamp Co." They were a competitor to S & H Green Stamps.Contents [hide]
1 History and background
2 Acquisitions
3 References
4 External links

[edit]
History and background

In 1963, the United States government began an antitrust action against Blue Chip Stamp. In 1967, the parties agreed to a consent decree which led to the creation of a new company "Blue Chip Stamps".

In 1975, a lawsuit filed by Blue Chip Stamps was decided by the Supreme Court in the opinion Blue Chip Stamps v. Manor Drug Stores.[1] This ruling helped establish the precedent that only buyers or sellers of securities can file suit for damages due to deceptive practices.

Berkshire Hathaway, the investment vehicle of Warren Buffett, began investing in Blue Chip Stamps in 1970. Berkshire's investment in Blue Chip went from 36.5% in 1977, to 60% in 1979, and finally merged in a stock swap in 1983.[2]

According to Buffett's 2006 letter to Berkshire shareholders, Blue Chip had 1970 sales of $126 million as about 60 billion of "stamps were licked by savers, pasted into books, and taken to Blue Chip redemption stores." He also said, "When I was told that even certain brothels and mortuaries gave stamps to their patrons, I felt I had finally found a sure thing." Sales dropped to $19.4 million in 1980 and $1.5 million in 1990. In 2006, revenues came in at $25,920.[3]
[edit]
Acquisitions

On January 3, 1972, Blue Chip obtained a controlling interest in See's Candy Shops. Blue Chip later acquired 100% of See's for an overall price of $25 million.

Wesco Financial Corporation is currently an 80.1% owned subsidiary of Blue Chip Stamps.

GEICO: The Graham and Buffett Company

A history

GEICO, the Government Employees Insurance Company, began life in 1936 when a Texan by the name of Leo Goodwin saw potential in providing low cost insurance to government employees who statistically had lower claims than the public as a whole. Goodwin calculated correctly that direct marketing to potential customers would produce more business at less cost.

The venture was successful and in 1947, Benjamin Graham’s investment trust took a 50 per cent share in the business. Graham subsequently floated it as a public company allocating the shares to investors in his trust. He took shares himself and retained his shareholding until he died.
Warren Buffett and Geico

Warren Buffet’s first flirtation with GEICO took place in 1943 as a fledgling investment consultant. Roger Lowenstein tells an anecdote about this in his book Buffett: The Making of an American Capitalist.

Apparently, Buffett, knowing of the involvement of Graham, his mentor, with GEICO, decided to look it over. He visited the company’s offices only to find them closed. The nightwatchman told him that there was someone still working there, late, and agreed to take Buffett in to meet him. The late worker turned out to be Lorimar Davidson, who was to end up running the company.

Buffett interrogated Davidson for several hours, and each man made a good impression on the other. Because of these discussions, Buffett’s investment partnership took a small holding in GEICO, which it eventually sold down.

By 1974, the company was not travelling well. The government had brought in no-liability insurance in some areas, the company had extended its clientele to higher risk categories, and there had been inadequate provision for future claims.

In 1976, it announced a loss of 126 million dollars and the company’s shares, which had traded as high as $42, were down to just under $5. The 1976 Annual General Meeting was a near riot with angry shareholders challenging management. By then, the shares were down to about $2.

There was then a change in company management with J J Byrnes taking over the key role. Byrnes made drastic changes, cancelling high-risk policies, laying off staff and moving office. Despite these changes, the regulatory authorities were hovering over the company’s near carcass.

Buffett had always kept his eye on the company and took the view that despite its problems, the company’s core business was sound.

The company’s premiums also attracted Buffett. Insurance companies receive premiums against the possibility that they may have to pay out claims in the future. Provided the company follows sound actuarial practices and makes adequate provision for claims, this gives it large amounts of cash to invest in profit making ventures. This is what Buffett calls the ‘float’. He saw this as an opportunity to provide cash resources to buy businesses and invest in shares.

Through Katherine Graham, the proprietor of the Washington Post, Buffett arranged to meet with Byrnes and was apparently impressed enough to buy, via Berkshire Hathaway, 500,000 shares in the company with a standing order to buy more.

The company started to improve, managing to offload a lot of its reinsurance risk. Salomon Bros came to the party with an underwritten preferred stock issue (of which Berkshire took 25 per cent) and Buffett interceded with the insurance regulators to ensure that GEICO kept its licences.

Six months later, the shares had risen to $8. Graham, who had by then retired, must have felt happy that his protégé had intervened.
The Buffett years

Over the years, GEICO went from strength to strength, Buffett always seizing the opportunity to increase the Berkshire shareholding. However, business started to drop off in the 1980s and by 1994, the share price had fallen again. Buffett grabbed his chance and bought out the other shareholders for a total price of 2.3 billion dollars.

GEICO is now a huge and profitable insurer. Its value to Berkshire however, has not been merely its ability to make good returns from insurance activities, but as a ‘float’ to provide funds to enable Buffett and Berkshire to acquire good businesses and shareholdings.

Swiss Re (Schweizerische Rückversicherungs-Gesellschaft AG, SIX: RUKN) is the world’s second-largest reinsurer, after having acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re operates through offices in more than 25 countries. General Electric owns 8.9% of the firm.

History

The Swiss Reinsurance Company of Zurich was founded on December 19, 1863 by the Helvetia General Insurance Company (now using the trade name of Helvetia insurance) in St. Gallen, the Schweizerische Kreditanstalt (Credit Suisse) in Zurich and the Basler Handelsbank (predecessor of UBS AG) bank in Basel.

Like the fire of Hamburg in 1842 (which led to the foundation of the first professional reinsurers in Germany, [1]), the great fire of Glarus in 1861 showed that insurance coverage was totally inadequate in Switzerland in the event of such a catastrophe. Hence the need to provide more effective means of coping with the risks posed by such devastation.

On 10/11 May 1861, more than 500 houses went up in flames in the town of Glarus. Two thirds of the town sank into rubble and ashes; around 3000 inhabitants were made homeless.

The company’s articles of association were approved by the government of the Canton of Zurich on 19 December 1863. The foundation capital, which was 15% paid up, amounted to 6 million Swiss francs. The official foundation document bore the signature of the poet Gottfried Keller, who at the time was first secretary of the Canton of Zurich

The Swiss Reinsurance Company was the lead insurer of the World Trade Center during September 11 attacks which led to an insurance dispute with the owner, Silverstein Properties.

In 2009, Warren Buffett invested $2.6 billion as a part of Swiss Re's raising equity capital.[2][3] Berkshire Hathaway already owns a 3% stake, with rights to own more than 20%.[4]
[edit]
Corporate headquarters

Swiss Re is headquartered in Zurich where the parent company’s main premises has stood on the shores of Lake Zurich since 1864. On 31 October 2008, Swiss Re completed GBP 762 million acquisition of Barclays PLC's Barclays Life Assurance Company Ltd.
[edit]
London headquarters

Its new London headquarters are located in the award-winning 30 St Mary Axe tower, which opened on May 25, 2004. 30 St Mary Axe is London's first environmentally sustainable tall building. Among the building's most distinctive features are its windows, which open to allow natural ventilation to supplement the mechanical systems for a good part of the year.

The landmark London skyscraper, designed by architect Norman Foster and popularly known as 'the gherkin’, was confirmed sold on February 5, 2007 for over £600 million (US$1.18 billion) to a group formed of IVG Immobilien AG of Germany and Evans Randall of Mayfair (Financial Times 2007).
[edit]
American headquarters

The American headquarters of Swiss Re are located in Armonk, New York on a 127-acre (52 hectares) site overlooking Westchester County’s Kensico Reservoir. The facility, which houses more than 1,000 employees from the company’s Life & Health and Property & Casualty business units, was completed in 1999 and expanded in 2004.

Swiss Re also has offices in Atlanta, Avon, Boston, Calabasas, Chicago, Dallas, Fort Wayne, Hartford, Kansas City, Manchester, New York City, Philadelphia, San Francisco, and Schaumburg, Illinois. Swiss Re's Canadian office in Toronto, Swiss Reinsurance Company Canada, was named one of Greater Toronto's Top Employers by Mediacorp Canada Inc. in October 2008, which was announced by the Toronto Star newspaper.[5]
[edit]
Subsidiaries This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (January 2008)


Broker dealer Swiss Re Capital Markets (SRCM), is a broker-dealer and leading underwriter and developer in the insurance-linked securities market. Since 1997 SRCM has underwritten over USD 15 billion of ILS including Insurance-Linked Bonds (ILBs) also known as Catastrophe Bonds (Cat Bonds) for third-party clients and its parent, Swiss Re.

Swiss Re Capital Markets has developed new security types such as earthquake bonds. Swiss Re Capital Markets also developed the parametric index trigger, the ILS shelf program, the first ILS synthetic CDO, and the first extreme mortality bond (linked to life risk).

Conning Asset Management does third party asset management and is headquartered in Hartford, Connecticut.

In 2006, Fox-Pitt, Kelton completed a management buyout backed by J.C. Flowers & Co. Swiss Re had acquired FPK, a finacial services focused investment banking boutique and brokerage in 1998 for $200 million.[6]

Type Public (SIX: RUKN)
Founded 19 December 1863
Headquarters Zurich, Switzerland
Key people Stefan Lippe (CEO), Walter Kielholz (Chairman of the board)
Industry Financial services
Products Reinsurance, insurance, asset management
Revenue CHF 24.98 billion (2008)[1]
Profit ▼ (CHF 864 million) (2008)[1]
AUM CHF 125 billion (2008)[1]
Total assets CHF 239.9 billion (2008)[1]
Employees 11,560 (2008)[1]
Website www.swissre.com

United States Liability Insurance Group specializes in underwriting low premium, low hazard specialty insurance products. We are committed to making a difference to our Customers through well-designed products that are delivered with unparalleled speed, service and support.


A member of the Berkshire Hathaway family of companies, United States Liability Insurance Group is an A++ rated company that supports its products with financial strength and stability. In addition to our innovative products, we provide a broad range of marketing assistance to our Customers to help ensure their long-term success.

Wesco Financial

Wesco Financial

Wesco Financial Corporation (NASDAQ: WSC) is a diversified financial corporation headquartered in Pasadena, California.

Wesco was originally a savings and loan association. It is 80.1% owned by Blue Chip Stamps, which is wholly owned by Berkshire Hathaway, which is controlled by legendary investor Warren Buffett. Wesco is chaired by Charlie Munger, who is also vice-chairman of Berkshire Hathaway and the man that Buffett has often publicly referred to as his "partner". Munger, formerly a practicing attorney, is known for his straight-shooting style and his conduct at the annual Wesco shareholder meetings in Pasadena, where he often interacts with the outside investors at considerable length.

Wesco does business in three major categories; insurance, furniture rental, and steel service. The following wholly owned subsidiaries handle most of Wesco's business:
Wesco-Financial Insurance
Kansas Bankers Surety.
CORT Business Services Corporation, furniture rental.
Precision Steel Warehouse, Inc., a chain of steel service centers.

MS Property Company, which owns commercial real estate in Pasadena.

Type Public (NASDAQ: WSC)
Founded 1959
Headquarters Pasadena, California
Key people Charles T. Munger, Chairman of the Board
Robert H. Bird, President
Jeffrey L. Jacobson, VP & CFO
Industry Insurance,Furniture Rental,Steel
Revenue ▲ $888.30 million USD (FY 2005)
Owner(s) Berkshire Hathaway
Employees 2473 (17 at KBS, 2250 at CORT, 200 at Precision Steel, 6 at Wesco) (as of 2004)
Website www.wescofinancial.com

National Indemnity Company
From Wikipedia, the free encyclopedia

National Indemnity Company is an insurance company based in Omaha, Nebraska. It is a subsidiary of Berkshire Hathaway.

National Indemnity group of insurance companies

National Indemnity Company
National Liability & Fire Insurance Company
National Fire & Marine Insurance Company
National Indemnity Company of the South
National Indemnity Company of Mid-America
Columbia Insurance Company

Medical Protective
From Wikipedia, the free encyclopedia

Medical Protective is an American liability insurance company for physicians and dentists. Medical Protective traces its roots back to a predecessor company, the Physicians’ Guarantee Company. Alpheus P. Buchman, MD of Fort Wayne, Indiana and a group of physicians formed the Physicians' Guarantee Company in 1899 to provide pre-paid legal defense services for medical malpractice lawsuits.[1] The company is considered one of the first companies to offer pre-paid legal defense services in the United States.[2] In 1902, Physicians’ Guarantee Company changed its name to the Physicians’ Defense Company.[3] In 1907, Byron H. Somers and Charles M. Niezer founded The Medical Protective Company and in 1913, Medical Protective acquired Physicians Defense Company.[4] Byron Somers and by his descendants ran Medical Protective until 1998 when General Electric purchased the company. In 2005, Warren Buffett's Berkshire Hathaway purchased the company for $825 million.[5]

It has annual premiums over $700 million and statutory assets over $2 billion.[5] Its products are underwritten by the Medical Protective Company and are distributed through a network of employee market managers and appointed agents. Company headquarters is located in Fort Wayne, Indiana.
[edit]
History

1899 - Recognizing that healthcare providers are increasingly being sued, Dr. Alpheus P. Buchman and others create Physicians' Guarantee Company (PGC) to provide pre-paid legal defense coverage.

1902 - PGC changes its name to Physicians' Defense Company (PDC), with Dr. Miles F. Porter as President, and Dr. Charles A.L. Reed (President of the AMA) on the board of directors.

1909 - PDC merges with Medical Protective and expands coverage to include indemnity coverage.

1920s - Byron H. Somers leads Medical Protective and the company becomes the largest insurer of healthcare providers in 17 states.

1930s - Medical Protective introduces a much broader coverage policy and helps shape the defense of medical practitioners; provides the first "medmal bible" to the industry, named "Brief on Malpractice Law."

1940s - Medical Protective defends well over 50,000 claims and provides physicians and dentists with continued coverage during their WWII military service.

1950s - Always with a vision towards the future of healthcare, Medical Protective begins insuring residents and interns during their training.

1960s - Medical Protective begins to expand coverage and increase limits and continues its national leadership position.

1970s - Medical Protective is one of the few carriers to survive the increasing number of medical malpractice suits that results in the industry's "first crisis."

1980s - While many carriers exit the market during the industry's "second crisis," Medical Protective continues to offer occurrence coverage and to award claim-free credits for policyholders without losses.

1990s - Focusing on the continuum of care, Medical Protective begins to insure small and community-based hospitals.

1998 - General Electric purchases Medical Protective and expands coverage countrywide.

2001 - Recognizing technology advancements, Medical Protective offers online risk management CME courses, and STATUS online coverage application.

2002 - While St. Paul Travelers and others exit the market during the industry's "third crisis," Medical Protective adds policyholders and expands to meet the needs of healthcare providers.

2005 - Medical Protective is purchased from GE by Warren Buffett's Berkshire Hathaway. Insureds have the long-term confidence that comes from being with Fortune Magazine's "World's Most Admired Insurer."

2006 - Rating agencies S&P and A.M. Best assign the highest financial strength ratings to Medical Protective, "AAA" and "A++" respectively.

2007 - Medical Protective insures stand-alone surgery centers, cancer treatment centers, dialysis centers and imaging centers, and forges partnerships with specialty organizations and associations to offer solutions to their members.

Berkshire Hathaway Assurance

Berkshire Hathaway Assurance

Berkshire Hathaway Assurance is an bond insurance company created by Berkshire Hathaway, Inc. in December, 2007.

[edit]
History

Berkshire created this government bond insurance company in December, 2007 to insure municipal and state bonds. These type bonds are issued by local governments to finance public works projects such as schools, hospitals, roads, and sewer systems. Berkshire is not guaranteeing BHA[citation needed], thus opening itself to competition from any number of investors who could easily assemble the $5 billion capital. BHA will begin in New York, then move to California, Puerto Rico, Texas, Illinois, and Florida.[1] On February 12, 2008, Warren Buffett announced a plan to add up to $5 billion in capital to BHA to enable it to provide reinsurance on municipal bonds currently guaranteed by Ambac, MBIA, and FGIC Corp.[2] Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee.[2]

Kansas Bankers Surety Company
From Wikipedia, the free encyclopedia

Kansas Bankers Surety Company is an insurance company based in the United States. It is a subsidiary of Wesco Financial Corporation, a subsidiary of Berkshire Hathaway, the investment vehicle of Warren Buffett.

Central States Indemnity Company

Central States Indemnity Company

Central States Indemnity Company (CSI) is an insurance company based in Omaha, Nebraska. It is a subsidiary of Berkshire Hathaway.

Central States Indemnity Company

Central States Indemnity Company

Central States Indemnity Company (CSI) is an insurance company based in Omaha, Nebraska. It is a subsidiary of Berkshire Hathaway.

General Re

General Re

General Reinsurance Corporation, often called General Re, is one of the world's largest reinsurance corporations. It owns a controlling interest in Kölnische Rückversicherungs-Gesellschaft AG (Cologne Re) and both companies operate together as Gen Re. As a reinsurer, it "insures insurance companies" i.e. it will pay a portion of an insurance company's claims in exchange for a portion of the premium received by the insurance company for policies that cover those claims "Gen Re" is a wholly owned subsidiary of Berkshire Hathaway, the holding company run by investor Warren Buffett. In good years, General Re is a large source of cash flow to Berkshire Hathaway and has provided much of the cash that is then used by the company to acquire additional subsidiaries. However, since General Re was acquired in December of 1998, it has run into a string of business and profitability issues. Problems have included emergence of losses on unprofitable business written in the 1990s and earlier, concentration of risk (and therefore huge claims) in reinsurance agreements covering 9/11 losses and most recently, questionable accounting practices on "finite risk" reinsurance contracts written with insurance giant American International Group in 2002.

GEICO

GEICO=

=The Government Employees Insurance Company, usually known by the acronym GEICO, is an American auto insurance company. GEICO is a wholly owned subsidiary of Berkshire Hathaway that as of 2007 provided coverage for more than 10 million motor vehicles owned by more than 9 million policy holders. GEICO writes private passenger automobile insurance in the District of Columbia and in all 50 U.S. states. The company is notable for its television advertising, with several prominent campaigns running simultaneously in national markets. Its mascot is a gecko that originally had an American accent but for marketing reasons was changed to a Cockney accent.

History

GEICO was founded in 1936 by Leo Goodwin and his wife Lillian to provide auto insurance directly to federal government employees and their families.[2] GEICO's original business model was predicated on the assumption that federal employees as a group would constitute a less risky and more financially stable pool of insureds, as opposed to the general public. Despite the presence of the word "government" in its name, GEICO has always been a private corporation.

An important figure in GEICO's history is David Lloyd Kreeger, who became president of the company in 1964 and helped steer it into a major insurance enterprise. In 1948, he formed a group of investors who bought into GEICO. He became senior vice president and general counsel of the company. Six years after becoming president of GEICO in 1964, he was named chairman and chief executive officer. He retained those titles until he retired in 1974. He continued as chairman of the executive committee until 1979, when he was named honorary chairman.[3] Intriguingly, the GEICO web site avoids any mention of Kreeger.[2]

In the 1970s, under Kreeger's leadership, GEICO began to insure the general public, after real-time access to computerized driving records became available throughout the United States. In 1996, GEICO became a wholly owned subsidiary of Berkshire Hathaway.

GEICO generally deals directly with consumers via the telephone and the Internet, freeing up capital that would otherwise be spent on employing insurance agents in the field. As a result, the company is now the 3rd largest direct writer of private auto insurance in the United States.[4]

At Buffet's Diversified Berkshire Hathaway, Insurance Still #1

By Josh Funk
May 4, 2007
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The mix of companies and investments billionaire Warren Buffett's company holds makes some people think investing in Berkshire Hathaway Inc. is a bit like buying shares of a mutual fund that emphasizes insurance.

But some analysts say that's not the right way to think of the Omaha-based company because it owns more than 60 different companies outright in addition to its $61.5 billion (euro45.3 billion) investment portfolios.

"I really think it is a living business organization that is out selling product every day,'' Morningstar analyst Justin Fuller said.

Buffett himself contributed to the notion that Berkshire's diversity gives it strength when he pointed out in the company owners' manual that most of his and vice chairman Charlie Munger's net worth is Berkshire stock. A version of the manual has been part of the company's annual reports for more than a decade.

"Charlie and I feel totally comfortable with this eggs-in-one-basket situation because Berkshire itself owns a wide variety of truly extraordinary businesses,'' Buffett wrote. "Indeed, we believe that Berkshire is close to being unique in the quality and diversity of the businesses in which it owns either a controlling interest or a minority interest of significance.''

Buffett declined an interview request for this story, but he and Munger will field questions for roughly six hours at the annual shareholder meeting Saturday. Between 25,000 and 28,000 people are expected to attend based on requests for credentials.

At the meeting that Buffett likes to call "Woodstock for Capitalists,'' Berkshire's various holdings will be scrutinized and celebrated by his fans.

A few of Berkshire's building material companies � Acme Brick, Benjamin Moore paints and Johns Manville � will show off their wares alongside RV company Forest River and manufactured-home builder Clayton Homes.

The Pampered Chef will offer housewares, Fruit of the Loom will be selling underwear and clothing, and dessert will be available from Dairy Queen.

Berkshire's investment portfolio will be represented by Coca-Cola Co. Berkshire holds 200 million shares � or 8.64 percent � of the soft drink giant.

But the retail and manufacturing companies and investments accounted only for a little more than half of Berkshire's earnings before taxes last year.

Insurance companies such as Geico drive the company's profits.

Berkshire's insurance division generated nearly 49 percent of the company's earnings before taxes last year, and, perhaps more importantly, the insurance companies generates billions of dollars that Berkshire can borrow to invest.

"Insurance is the most important part'' of Berkshire, said Andy Kilpatrick, whose 1,848-page book on Buffett fills two volumes in the 2007 edition.

Besides insurance companies that sell directly to consumers, Berkshire owns several reinsurance companies, such as General Re, that mainly sell insurance to other insurance companies.

The "float'' Berkshire's insurance division generates grew to $57.9 billion (euro42.6 billion) with the agreement Berkshire reached last fall to take on the liabilities of Equitas Holdings Ltd., the reinsurer set up by Lloyd's of London.

Unlike a mutual fund, management fees aren't much of a concern at Berkshire because both Buffett and Munger have earned $100,000 (euro74,000) salaries for many years, Kilpatrick said.

"You can't find a cheaper fund manager,'' said Kilpatrick, whose book is called "Of Permanent Value: The Story of Warren Buffett.''

Berkshire's track record is also better than many mutual funds.

Since 1965, the annual growth in Berkshire's book value � assets minus liabilities � has consistently beaten growth in the S&P 500. Over that time, Berkshire has grown at a compounded annual rate of 21.4 percent compared with the S&P's compounded annual gain of 10.4 percent.

Last year, Berkshire reported making $11.02 billion (euro8.11 billion), or $7,144 (euro5,258) per share, a 29.2 percent improvement over 2005 because few hurricanes or other disasters challenged its insurance companies.

Regardless of how much Berkshire is like a mutual fund, the required minimum investment is significant, with Class A Berkshire shares selling Wednesday, May 2, for $108,600 and Class B shares selling for more than $3,600.

Shareholders will learn about the company's first-quarter performance today, May 4, when Berkshire releases an earnings report less than a day before the annual meeting begins.

Buffett, Whitman, Grantham & Others Weigh In
Published October 26, 2009 Gurus Leave a Comment
Tags: Bill Gross, Bob Rodriguez, Jeremy Grantham, Jim Rogers, Marty Whitman, Warren Buffett

Kiplinger’s recently asked six top strategists to give their take on investing and where the markets are headed from here. A sampling of the responses:

Warren Buffett: While he says he has no idea where stocks will head in the short term, Buffett says that “over a ten-year period you will do considerably better owning a group of equities than you will owning Treasuries. In fighting the economic war, we’ve taken action that sows the seeds of substantial inflation down the road. Not in the next six months or year, but ten years from now the dollar will buy a lot less than it buys today.”

Bob Rodriguez: The chief executive officer of First Pacific Advisors says “don’t run with the herd. Being surrounded by people who are doing the same thing as you offers a false sense of protection. He recommends short-maturity, high-quality debt on the bond side, and says that if the U.S. government keeps increasing its balance sheet through huge deficits, “you should probably move at least 20% to 40% of your assets out of the U.S.”


Jeremy Grantham: The GMO chief investment strategist says that if you’ve missed the junk rally, “don’t compound the damage to your portfolio by chasing gains in risky assets. We’re at the beginning of a seven-year period of lean returns.” He recommends buying only the most attractively valued, highest-quality blue-chips.

Marty Whitman: The co-chief investment officer of Third Avenue Management says to “find extremely well-financed companies that do not rely on continuous access to the bond or stock markets for refinancing, that are run by competent management teams and that have favorable prospects for growth.” Buy those issues when they’re trading at a discount. “All other systems of investing are concerned with predicting stocks’ near-term price movements,” he says.

Steep Grades Ahead for Railroads
After signs of stabilization, reality sets in for a difficult recovery.

Warren Buffett targets companies with moats, but these days the easiest moat to identify for Burlington Northern Santa Fe (NYSE: BNI) is that which lies between stabilization and recovery.

Burlington Northern rattled the railroad sector by posting a 30% decline in earnings amid a 27% fall-off in freight revenue. Although the railroads presented a consensus view that business conditions had bottomed out during the second quarter, and marginally improved sequential freight volumes confirm that they have for now, Burlington Northern's revenue decline still outpaced the 26% decline noted last quarter.

I suspect that the substantial barrier separating demand stabilization from sustainable demand recovery is not quite the moat that Berkshire Hathaway (NYSE: BRK-A) investors had in mind. Burlington's freight volumes declined 17% year-over-year, which is in the ballpark with the 15% drop observed by competitor CSX (NYSE: CSX).

These volumes are much improved from the 22% declines reported by CSX and Union Pacific (NYSE: UNP) after the second quarter, but recent glimpses of fourth-quarter expectations from industrial bellwethers such as Peabody Energy (NYSE: BTU) and steelmaker Nucor make it difficult to anticipate continued improvement in volumes hauled. Reflecting the persistent weakness in construction-related demand confirmed by dismal results from USG (NYSE: USG) last week, Burlington Northern watched revenues from industrial products slide by 34% in the third quarter. Revenue from consumer-driven segments such as automobiles and containers, which account for some 31% of Burlington's traffic, dropped by an astounding 36%.

Union Pacific CEO Jim Young extended his cautious outlook into 2010: "I think next year we're going to be hard-pressed to see much of a volume increase." To date, railroads have exhibited a laudable capacity to increase operational efficiency to absorb revenue declines, but without a true recovery in demand, that ability can take the sector only so far.

I would like nothing more than to endorse Warren Buffett's choice in the railroad sector as best in class, but the operator's combined debt and deferred income taxes have climbed to more that $19 billion. That's some heavy cargo! While the company's operating ratio of 74.2% is respectable, it nonetheless stands some 1,150 basis points above that reported by my preferred operator: Canadian National Railway (NYSE: CNI).

My readers know that I have taken a cautious view of the North American railroad sector for several quarters because of deep-seeded fundamental challenges to sustainable recovery within the domestic industrial base. It's time for you to make your opinions known through our Motley Fool poll.

Warren Buffett and Bill Gates to Hold Master Class in CNBC Special

Warren Buffett and Bill Gates will be the 'Big Men on Campus' next month when they go to Columbia Business School to answer questions from the "next generation of business leaders" .. and CNBC's cameras will be there.

We've just announced that a one-hour special town hall event, Warren Buffett and Bill Gates: Keeping America Great, will air Thursday, November 12 at 9p and 12a ET. The program will be repeated on Sunday, November 15 at 10p ET.

Squawk Box co-anchor Becky Quick will be the moderator of the event, which will be taped earlier in the day. CNBC.com's Warren Buffett Watch will be inside the hall for real-time coverage as it all happens.

Buffett, of course, enrolled at Columbia Business School because his mentors, Benjamin Graham and David Dodd, taught there. He graduated in 1951.

Gates famously dropped out of Harvard's class of 1977.

It's the first time in years the two friends and online bridge partners will be back on campus for an appearance together, and the last one got rave reviews.

Their 2005 session with students at the University of Nebraska at Lincoln's College of Business Administration was turned into a PBS broadcast special and DVD. (Five stars on Amazon.com)

You can expect Buffett and Gates to be candid, informal, and very funny, with a substantial helping of their thoughts on the responsibilities we all have to make the world a better place.

Buffett, Gates pay quiet visit to Fort Worth

Under tight security — along with tremendous discretion and restraint by the Ashton Hotel staff — the world’s two wealthiest men recently spent a couple of days in Fort Worth mostly unnoticed.

Warren Buffet, legendary investor and Berkshire Hathaway chief executive, and Bill Gates, Microsoft chairman and a Berkshire Hathaway board member, attended a company meeting at the 39-room downtown boutique hotel, 610 Main St.

They arrived Thursday afternoon and departed Saturday morning.

Berkshire booked the Ashton for its meeting six months ago. The chief executives of some Berkshire companies also attended. Berkshire owns Fort Worth-based Justin Industries, which includes Acme Brick Co., and TTI, an electronics components distributor.

A couple leaving the Ashton’s 610 Grille on Friday evening noticed Gates waiting in the hotel lobby and spoke with him for several minutes, hotel staff members say.

"He couldn’t have been nicer," Ashton General Manager Mark Michalski said of Gates.

Ashton owner Matt Mildren said it was "extremely" difficult keeping the visit hush-hush. The staff was told to honor the men’s privacy but also to treat them like other guests, he said.

The hotel made sure it had only Coke products on hand — Buffet not only likes Cherry Coke but Berkshire also owns a stake in the company — as well as Buffet’s favored Tootsie Pops, Hershey’s Kisses, Fritos and Cheetos.

On Thursday, Buffet had a private board dinner in the wine cellar, while the others dined at nearby Grace restaurant. Friday’s lunch was held in a second-floor meeting room overlooking Main Street as a chuck wagon parade passed.

"It was good timing," Mildren said. "It looked like we staged it for them."

Friday’s dinner was at Del Frisco’s.

Before checking out, Buffett and Gates complimented the hotel, its staff and downtown, and Buffet even posed for pictures.

Warren Buffett's 'Buy American' - One Year Later
Published: Monday, 19 Oct 2009 | 7:00 AM ET 
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By: Alex Crippen
Executive Producer



One year ago, even though the financial world was "a mess" and would probably get messier, Warren Buffett wrote in the New York Times that he was buying U.S. stocks to lock in a "slice of America's future at a marked-down price."

He cited his "simple" rule: "Be fearful when others are greedy, and be greedy when others are fearful."

One year later, the benchmark S&P 500 is 14.9 percent higher than it was the night before Buffett's "Buy American" op-ed (read the complete article) was published on Friday, October 17, 2008.

But that's beside the point.




In his op-ed, Buffett makes clear he wasn't trying to "time" the market. He wrote he didn't have the "faintest idea" whether stocks would be higher or lower one month, or one year later. Both qualify as short-term for Buffett. He was looking five, ten, or twenty years into the future.

And it's a good thing Buffett wasn't trying to pick a short-term bottom, because his timing was awful. The S&P continued to drop that fall and winter, closing at its bear-market low of 676.53 on March 9.

If you had been smart or lucky enough to go all-in on the S&P on that day, you'd be up 60 percent now.

But Buffett's key point is that very few of us are going to be that smart or that lucky. Those waiting for the perfect moment run a big risk of coming in too late, especially if they're looking for hints that things are getting better.

The Oracle of Omaha won't make predictions about specific stock market moves, but he does have one strongly-held prophecy about the future: "The market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over."

GE: Still a Bargain 4 comments
October 21, 2009 | about: BRK.A / CMCSA / GE  
Alexander Wissel
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The country’s largest mutual fund, also know as General Electric (GE), is starting to see renewed interest from small investors and institutional traders alike.

GE is also the ultimate recovery play on the United States and the global economy.

Through General Electric’s fourteen divisions, the company reaches into almost every aspect of our lives. From the trains, planes and automobiles that move people and products, to consumer goods, technologies, financial services, utilities and entertainment, it has a hand in just about every major industry around the world. 

But you don’t need to know everything about the intricacies of each division. You just need to know that, if separated, each unit would be a leader in its industry. 

These multiple units make GE incredibly diverse and more like a mutual fund than a single company. It also leaves GE more prone to broad economic cycles. This is a good thing, because as the economy turns the corner, GE will as well. 

Here’s why GE is a great buy under $16, why the street still hasn’t jumped back in, and what they simply can’t seem to get through their heads. 

General Electric’s Capital Finance Problem

GE has been trading in a range tight range since August. And, while it has more than doubled in value from its March lows, it sits well off its 2007 high of $41.

There are a number of reasons for the General’s situation, but the biggest reason is debt. Specifically the debt from GE’s Capital Finance unit, which has been plagued by concerns it would drag the company down with it. 

While the impact of their finance unit was severe – a major concern earlier this year – the likelihood of a full-blown collapse now seems improbable. In fact, GE has been shoring up its balance sheets with asset sales and capital infusions. The real estate division is now the only unprofitable unit and, as Immelt reported, they have funded those debt obligations for almost all of next year.

And GE isn’t done yet. CEO Jeff Immelt has been very public about his desire to turn around the struggling NBC Universal unit, over the course of sales negotiations with Comcast (CMCSA) and could possibly sell its entire interest in the next few years. GE owns 80% of NBC. 

A few of the highlights from the webcast last week included increased cash flow from operating activities to $4.4 billion and a shrinking of the Finance unit’s balance sheet – and it’s potential negative impact on the stock. In addition, its backlog of industrial products now sits at $174 billion – that’s a lot of product to produce, and income yet to be booked.

Why GE Is a Great Buy Right Now

At the height of the market mayhem last year, the world’s greatest investor – Warren Buffett, through Berkshire Hathaway (BRK.A) invested $3 billion as a measure of confident in GE and its directors. He received a 10% interest payments and warrants to purchase over 134 million shares of GE stock at $22.25. These options expire in 2013. 

At the current market price, that’s a 41% increase in the stock. 

And it gets even better. While GE has cut its dividend, which angered a lot of shareholders and dividend funds, at 0.10 a share it’s still a respectable 2.55%. 

GE is going to fly under the radar for a while as it siphons large amounts of its cash flow to pay down that finance unit debt and reduce its loss exposures. This will take some time. In the meantime, earnings will look like they’re in park. The reality will be like a motorcycle that's rear wheel drive has been held off the ground while at full speed. When the bike is lowered back down – in our case, when the Capital Finance unit’s cash siphoning stops – this stock will take off. 

As these capital obligations from the finance unit clear up, it won’t be too improbable to see GE’s dividend start creeping back up. However, GE’s story doesn’t stop with its Capital Finance unit. Here are four more reasons this stock is set to move higher. 
Stimulus. The full impact of the stimulus hasn’t been seen yet in the United States or in many of the countries around the world. These efforts should start to take affect in the Q4 and into 2010. GE’s focus on infrastructure and energy are going to pay off big for them. 
Green energy. Shipping roughly 1000 wind turbines for each of the last two years puts GE in a good place for domestic energy initiatives. While wind turbines won’t reignite this stock by themselves, their existence, along with the rest of GE’s green energy programs and products give them a leadership position in the sector. 
Global economies. Strong emerging markets positions around the world. Because of their global market approach to customers, it makes GE a great way to capitalize on growth around the world without investing in specific economies. 
Exchange rates. GE books a large amount of total revenues from overseas. With the dollar in a free fall not seen since earlier this year, a weak dollar helps income earned overseas impact the bottom line better. 

After factoring in these factors, an improved economic outlook and Buffett’s investment, one of the biggest reasons that General Electric's stock will climb much higher is simply the return of the baby boomers to the markets. There are still trillions sitting in Treasuries earning little, if no interest. 

As these "soon to retire-es" look to rebuild their portfolios, they will be looking for dividend-bearing stocks that can offer them security, income and the potential for price appreciation. GE fits the bill for all three. 

And at any price under $16 a share, it’s a bargain.

Guru Ownerhship and Insider Trading Activities For U.S.Bancorp.

(GuruFocus, October 21, 2009) U.S. Bancorp (USB) today reported net income of $603 million for the third quarter of 2009, or $.30 per diluted common share. Earnings for the third quarter were driven by record total net revenue of $4.3 billion, the result of strong year-over-year growth in both net interest income and fee revenue. 

Investment Guru Warren Buffett ‘s Berkshire Hathaway is the large shareholder of the banking company. In the past, Buffett was very bullish on this stock together with Wells Fargo. 

Reflecting on today’s quarterly result announcement, Dick Bove think USB is one of the banking companies standing out:

Chen spreads a Buffett
By Zhang Ran (China Daily)
Updated: 2009-10-21 08:26
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Chen Fashu, regarded by many as China's Warren Buffett, yesterday announced that he would donate 45 percent of his personal assets, worth 8.3 billion yuan ($1.17 billion), to set up a charity modeled on the lines of the Bill and Melinda Gates Foundation.

The Newhuadu Philanthropic Foundation, once set up, is expected to be the largest civil charity foundation ever established in the country.

Chen, 48, a Fujian-born businessman who made his first million by selling groceries in his hometown during the 80s, later became a billionaire by investing in stocks on the A and H share markets.

He is currently the president of Fuzhou-based Newhuadu Industrial Group, and is ranked No 15 on Hurun's latest rich list with a personal wealth of 25 billion yuan.

The assets to be transferred to the charity will mainly include stakes that Chen owns in publicly traded companies such as Tsingtao Beer, Yunnan Baiyao Group, and some stock from his own Newhuadu Industrial Group. These will altogether account for 45 percent of his total assets according to current market value, Chen said at a media briefing in Beijing yesterday.

Chen will be the chairman, while Tang Jun, the president and CEO of Newhuadu Industrial Group, will be the managing director of the foundation.

"The charity will be modeled on the Bill & Melinda Gates Foundation. An independent team will be in charge of the operation of the foundation," Tang said. It may later seek a management tie-up with the Bill & Melinda Gates Foundation, he said.

The first batch of funding from the foundation, worth 10 million yuan, was donated to primary schools in poverty-stricken areas and poor university students yesterday.

Chen's fortune comes mainly from the Fujian-based Zijin Mining, a leading gold miner in China. His wealth expanded from 48 million yuan to 20 billion yuan when the gold mining company went public on the Shanghai bourse in 2008 and later at Hong Kong in 2009.

Chen was the second largest stakeholder of Zijin Mining before he sold around 50 percent of his holdings between May and July to buy H shares of Tsingtao Brewery Co Ltd. He is now the second largest shareholder of Shanghai-listed Yunnan Baiyao Group and the third largest shareholder of Hong Kong-listed Tsingtao Brewery Co Ltd.

However, the sale of Zijin Mining shares allegedly thrust Chen into a "tax evasion" scandal. The Beijing-based Securities Daily reported in September that the State Administration of Taxation was investigating Chen and his company for tax fraud in the Zijin Mining share sale. The report said that Chen had sold around 3 billion yuan worth of Zijin Mining shares, for which he would have to pay at least 1 billion yuan in taxes.

Individual investors who trade shares on the stock market do not pay capital investment income tax in China currently. However, experts, including Sun Gang, a researcher from the Research Institute for Fiscal Science, and Zhang Bing, a researcher from the Chinese Academy of Social Sciences, both said that individual investors who sell shares they bought before the companies went public should pay tax.

"But currently, there is no specific regulation on such taxation in China," Zhang said.

Related readings:
 Chinese tycoon's charity foundation focuses on education
 Huiyuan joins One Foundation as a partner in education efforts
 Yao Ming Foundation to help rebuild schools in Sichuan
 With Jet Li-One Foundation charity



Chen's setting up of the Newhuadu Philanthropic Foundation was widely speculated as a measure to save himself from the tax fraud accusation. 

Chen, however, said yesterday that he had been toying with the idea for two years and had spent over a year to set it up. The Ministry of Civil Affairs approved the foundation on Sept 30, Chen said.

Chen has not been the first billionaire to initiate a philanthropic foundation in China. Cao Dewang, chairman of another Fujian-based company Fuyao Group, said earlier that he planned to donate 70 percent of shares his family owns in the company to set up a 4-billion yuan foundation. However, Cao later gave up on the idea, as regulations do not permit a major shareholder of a company from transferring his shares.

Warren Buffett Opens 4th Annual Lydian Roundtable and Launches New Payments Industry Portal, PYMNTS.com
Tue Oct 20, 2009 12:50pm EDT
 

Buffett comments on economy, card industry and financial crisis and suggests
that "system works" and points to a focus on the customer as the path forward
for business
NEW YORK--(Business Wire)--
Warren Buffett, Chairman of Berkshire Hathaway Inc., opened the 4th annual
closed-door Lydian Roundtable on the Payments Industry, a closed-door gathering
of senior executives in the payments space, commenting on the resiliency of the
American system, yet cautioning that we`re not "100% there just yet" when asked
about consumer confidence and consumer spending. 

Buffett was interviewed by Cathy Baron Tamraz, President and Chief Executive
Officer of Business Wire, a Berkshire Hathaway company which partnered with
Market Platform Dynamics to launch a new online B2B channel dedicated to the
payments sector, PYMNTS.com. 

When asked about the economy`s prospects, Buffett said that "enormous" progress
has been made since a year ago, which is a credit, in his view, to what the
government did to in the Fall of 2008 to keep the economy from "going over a
cliff." And although, the economy won`t be back the way it was for a while,
Buffett believes that the worst is behind us. He was more cautious when asked
about unemployment rates, citing that companies must be convinced that demand is
there before hiring and that may take some time. 

His comments about the payments industry are based on his experience as an early
investor in American Express in 1964. He was attracted to the company because of
its positioning and their marketing, which included a green card with a
centurion icon, which he described as something akin to looking like "Mr.
Integrity." Buffett said that he was convinced that cardholders preferred
pulling out a card that "made it look you were J.P. Morgan or something." That
drove the merchant demand - and acceptance - for the product. 

Buffett cited the lessons of his American Express experience in building a
success business: give the customer what they want. The American consumer -
Buffett says, is king. He goes on to say, "You can push them around for a week
or a month maybe, but you either figure out what`s in your customers` mind and
decide you are going to serve them; or you are not going to be in business. They
are right, and you are wrong. It`s what made this country, to some extent, what
it is. No one who has ever taken good care of a customer has lost." Buffett
suggested that this consumer preference is what "keep people pulling out a card"
rather than taking advantage of the other options that have emerged recently to
replace magnetic stripe cards. 

The interview and transcript can be found at PYMNTS.com, an online media channel
that captures user-generated and expert-driven commentary, information, news and
analysis on "what`s next" in the payments sector, worldwide. The site provides a
platform for industry professionals to share content related to their latest
company and product developments, to tap into the collective commentary and
analysis from experts, bloggers and industry pundits, and to interact with
industry thought leaders and other influentials on topics of critical importance
to the future of the sector. PYMNTS.com is a joint venture between Business Wire
and Market Platform Dynamics. 

For information on the PYMNTS.com editorial calendar for upcoming topics being
featured on PYMNTS.com, please contact editorial@PYMNTS.com

You can also subscribe to receive the daily PYMNTS.com newsletter at
subscribe@PYMNTS.com

Follow us on Twitter at http://twitter.com/PYMNTS and join the PYMNTS Linked In
group. 

For information the PYMNTS.com portal contact us info@PYMNTS.com

About Market Platform Dynamics (MPD):

MPD is a management consulting firm that ignites catalyst businesses by
leveraging new technologies, business models and pricing strategies. MPD has a
wealth of experience within industries that are characterized by complex
platform-centered ecosystems, including payments, mobile/telecoms, digital and
advertising-supported media, and software-based businesses. 

MPD works with both incumbents and new entrants, offering a unique lens into the
dynamics that shape the competitive playing field. In addition to traditional
consulting-based services, MPD`s Catalyst Ventures provides intellectual and
human capital to new firms. MPD`s experts include economists, econometricians,
product development specialists, and strategic marketers who apply cutting-edge
business theory and statistical methods to the practical problems of building
and growing a profitable catalyst business. MPD is headquartered in Cambridge,
MA, and has offices in London and Hong Kong. 

For more information visit www.marketplatforms.com. 

About The Lydian Roundtable

The Lydian Roundtable is an annual closed door summit of ~50 senior executives
in the payments sector. The Roundtable was established in 2004 by Market
Platform Dynamics as a way for those at the heart of decision-making in the
space to assemble and discuss the issues that will shape its future. Unusual in
its format, everyone invited is a participant in the day-long discussion, with
panels and panel moderators focusing the discussion throughout the day. The
Roundtable is invitation only and closed to press and media. 

This year, the Lydian Roundtable launched PYMNTS.com, the partnership between
Business Wire and Market Platform Dynamics to create a dynamic new media channel
serving the payments sector. A key feature of PYMNTS.com is the Lydian Payments
Journal which is an online journal focused exclusively on the global payments
sector. 

About Business Wire

Business Wire, a Berkshire Hathaway company, is utilized by tens of thousands of
member companies and organizations worldwide to functionally enhance and
communicate investor relations and public relations content to target audiences.
As a recognized disclosure service in the United States, Canada and a dozen
European countries, Business Wire facilitates the simultaneous flow of
market-moving press releases from corporations to financial markets and their
audiences, including regulatory authorities, media, investors, financial
information systems and consumer news services. Business Wire also handles XBRL
tagging, document formatting and regulatory filing into EDGAR, SEDAR, FSA and
other systems. 

Communications professionals turn to Business Wire to optimize and issue press
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Warren Buffett's Unconventional Approach to Charitable Donations

Warren Buffett’s approach to philanthropy has been unconventional. Rather than establishing the infrastructure required to administer a foundation bearing his own name, the majority of Mr. Buffett’s wealth has been given to The Bill and Melinda Gates Foundation. Many super-rich individuals set up foundations that will exist in perpetuity, but Mr. Buffett’s instructions call for using his donations soon after they are made.

Many wealthy individuals have taken note of the Buffett approach to philanthropy and have set up similar arrangements in which their wealth is used to fund current projects. The Philadelphia Inquirer published an article Sunday regarding Barbara Dodd Anderson’s donation to the George School located in Bucks County Pennsylvania. Ms. Dodd Anderson is the daughter of David Dodd who was co-author of Security Analysis along with Benjamin Graham.

Ms. Dodd Anderson’s 2007 donation consisted of Berkshire Hathaway (BRK.A) shares and have declined in market value over the past two years. At a news conference dedicating a new library funded by this donation, Mr. Buffett made the following comment:


On Sept. 18, 2007, shares were trading at $118,700. That was when Dodd Anderson gave George the largest gift to an existing independent school in the nation.

She created an irrevocable trust designed to pay out a record $128.5 million over 20 years. The value of that $70 million trust is now $68.5 million, down just as Berkshire Hathaway shares have dropped.

“It’ll change,” Buffett said. “There are only two [share] prices that matter – the price on the day you buy it and the price on the day you sell it. If you own good businesses and you don’t do anything stupid with your money, value tends to rise.”


The article also had an amusing story, which I have not seen elsewhere, regarding Mr. Buffett’s application to Columbia Business School in 1950. Let’s just say that the application used an unconventional approach:


When he was 9 or 10, growing up in Omaha, he read every book on finance in the public library, Buffett said.

He particularly admired Security Analysis, a 1934 investing classic cowritten by David Dodd.

Later, after Buffett had been rejected from Harvard University’s graduate school of business, he was thumbing through a Columbia University catalog and noticed that Dodd was assistant dean.

Even though it was August, just weeks from the start of the fall term, he wrote to Dodd: “I thought you guys were dead, but now that I realize you are alive, I’d like to come and study with you.”


While most aspiring Columbia Business School students would do well to emulate Warren Buffett’s history, they may wish to choose a more conventional strategy when writing their essay to the admissions committee!

FINANCE | 'Too many have walked away from troubles they created for society' 
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October 21, 2009 
BY ANDREW FRYE 

Billionaire Warren Buffett, who collects a $100,000-a-year salary for running Berkshire Hathaway Inc., said Wall Street pay needs a "downside" when profits deteriorate because of reckless bets.

"You have to put in something where there is downside to people who really mess up large institutions," Buffett said in an interview conducted by Business Wire, the Berkshire subsidiary that posts corporate press releases. "Too many people have walked away from the troubles they have created for society, not just for their own institution, and they have walked away rich."
» Click to enlarge image
 
Warren Buffett said Wall Street needs a "downside" when profits deteriorate because of reckless bets.

(AP) 




Wall Street bonuses for 2009 might jump 40 percent to $26 billion, a year after bad bets on subprime mortgages sent financial firms to the government for bailouts, according to estimates by compensation consultant Johnson Associates Inc. Buffett became the second-richest American by building Omaha, Neb.-based Berkshire into a $150 billion company.

"What you have to change in Wall Street, is you have to make sure that in addition to carrots, there are sticks," he said. "And it can't be a one-way street where they are making ungodly amounts of money when things are good and then they move on to someplace else for a while when things are bad."

Buffett invested $5 billion of Berkshire's money last year into Goldman Sachs Group Inc., Wall Street's highest-paying and most profitable firm. He said in the interview that the securities industry is essential to economic growth.

"I don't look at Wall Street as 'evil,' " he said. "I look at Wall Street as given to huge excess sometimes."

Banks worldwide reported more than $1.1 trillion of credit losses and writedowns tied to the mortgage meltdown since 2007, according to Bloomberg data.

Wall Street bonuses in 2008 fell 44 percent from the prior year to $18.4 billion, according to the New York state Comptroller.

Goldman, led by CEO Lloyd Blankfein, set aside $16.7 billion to pay employees so far this year. That's enough to pay each worker $527,192. The New York-based bank repaid $10 billion it got from Treasury and reported a jump in third-quarter profit. JPMorgan Chase & Co., which repaid $25 billion of U.S. funds, said profit surged almost sevenfold in the quarter.

Warren Buffett said Wall Street needs a "downside" when profits deteriorate because of reckless bets.

Cash-Distressed Business Offers Investors Way to Follow Buffett 
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By Alexis Leondis


Oct. 22 (Bloomberg) -- John Edelman, a former business owner, is taking Warren Buffett’s advice by investing in what he knows: home furnishings. 

“I feel so much safer doing this than buying stocks randomly,” said Edelman, of Ridgefield, Connecticut, who sold his high-end leather supply business for $67 million in October 2007 and started investing directly in three private cash- distressed home-furnishing companies last year. “Smaller investors can have more power now because they’re buying at lower values and their dollars go further.” 

The potential for average annual returns as high as 25 percent is luring some investors who are putting money in struggling businesses that aren’t publicly traded and unable to access traditional sources of capital, according to Mark Hancock, senior managing director of New York-based Tiedemann Wealth Management. That’s because some investors became disillusioned with the returns on equity and fixed-income investments last year, he said. 

“Many wealthy investors retreated at the right time, built up significant cash hoards and now want to redeploy that cash in distressed situations,” said Hancock, whose firm advises on $5.8 billion of assets for high-net worth families and institutions. The focus is on investments within industries that families have specific knowledge of, said Hancock, who estimates 10 percent to 15 percent of the firm’s 70 clients are evaluating investments in businesses that they know. 

The 2.7 million millionaires in the U.S. and Canada had $1.3 trillion in cash in 2008, based on a survey released in June by Capgemini SA and Merrill Lynch & Co. Investors put $19.2 billion into 55,480 companies last year, according to the Center for Venture Research at the University of New Hampshire in Durham. 

Supply Funds 

Government efforts, including an initiative announced yesterday by President Barack Obama, to ease lending to small businesses are not workable and some businesses are having difficulty accessing capital from banks because of weak balance sheets, said Sam Graves, a Missouri Republican, and ranking member of the House Small Business Committee, in an interview. That means individual investors can step in and supply funds, Graves said. 

Eighty percent of U.S. companies with fewer than 500 employees said access to capital was a major issue compared with 67 percent a year earlier, according to a July survey of 300 firms by the Washington-based National Small Business Association, a trade group with more than 150,000 members. 

Purchase Equity 

Investors interested in distressed investments can lend money to the business directly or purchase equity, said Darell Krasnoff, managing director of Bel Air Investment Advisors in Los Angeles, who counsels clients with at least $20 million in investable assets. They can also form limited partnerships, which pool funds from several investors and may be managed professionally, said Krasnoff, whose firm’s clients include Lee Iacocca and Barbra Streisand. 

Investing directly in cash-starved businesses is appropriate for sophisticated investors with at least $500,000 in capital who have expertise in the industry, said Jospeh Massoud, chief executive officer of Compass Diversified Holdings, a Westport, Connecticut-based owner of manufacturing, distribution and business service companies. 

“Just like Buffett says, invest in what you know,” said Massoud, referring to the chief executive officer of Berkshire Hathaway Inc., who has overseen more than $50 billion in acquisitions ranging from insurance and ice cream companies to corporate jet leasing and power plants. 

Investor’s Payoff 

An investor’s payoff can be tied to the success of the company, which can come in the form of an initial public offering, operational improvement of the business, sale of the business to another firm or dividends, said Chris Hyzy, New York-based chief investment officer at U.S. Trust, Bank of America Corp.’s private wealth management unit overseeing $180 billion. 

Illiquid investments, which lock up cash for more than one year and include distressed investments, should be from 5 percent to 12.5 percent of an investor’s portfolio, according to Arun Bharath, director of research at Bel Air Investment Advisors. 

Investments in companies, not just those that are distressed, have returned 20 percent to 25 percent on average since 2004, said Jeffrey Sohl, professor of entrepreneurship and director of the Center for Venture Research at UNH. The returns take into account companies that have failed or filed for bankruptcy, Sohl said. 

In 2008, investors in the Standard & Poor’s 500 Index lost 37 percent and a composite of high-yield bond funds declined 26 percent, according to data compiled by Bloomberg and Merrill Indexes. 

‘Substantial Returns’ 

“It’s an industry I know and one that’s suffering -- my gut is, it’s bottomed, said Edelman, 42, referring to the luxury-furnishing business. “Ideally in four to six years, I hope to get substantial returns.” 

Investors should be aware that putting money directly in cash-distressed businesses is illiquid, labor-intensive and risky, said Jon Goldstein, co-chief executive officer of Constellation Wealth Advisors, which manages almost $4 billion in assets for clients who have a minimum of $10 million in investable assets. Investors should expect to have their cash frozen for at least three years, said Goldstein, who is based in Menlo Park, California. 

There were 64,554 commercial bankruptcy filings in 2008 and almost 67,000 through September, according to data compiled from court records by Automated Access to Court Electronic Records, a service of Jupiter ESources LLC in Oklahoma City. 

Concentration Risk 

Some clients are still risk-averse and thinking about how to protect and preserve wealth, said Krasnoff of Bel Air Investment Advisors. Lending money to a private business also comes with concentration risk, as significant amounts of money are tied up in one business, he said. 

Goldstein of Constellation Wealth says he has several clients who made their fortunes in the technology industry and are considering investing in startups. The difficulty new companies are having raising venture financing means these investors are taking advantage of low prices and their expertise, he said. 

The amount of venture capital provided to startup businesses dropped 33 percent in the third quarter to $4.81 billion in 637 deals from $7.16 billion in 994 deals a year earlier, according to the National Venture Capital Association and PricewaterhouseCoopers. 

Cash Reserves 

Richard Caruso, 66, is chairman and founder of Integra LifeSciences Holdings Corp. in Plainsboro, New Jersey, which manufactures medical devices. He invested $3 million last year in Colmar, Pennsylvania-based CeeLite Technologies LLC, a maker of flat-panel lighting products. CeeLite’s predecessor company didn’t have enough capital to manufacture and sell its products worldwide. 

“Entrepreneurs are not just investors, they are visionaries and like to actively get involved in something they know and believe can be successful,” Caruso said. 

The most attractive opportunities are in industries that have been affected by the decline in retail spending, which include consumer products and capital equipment, according to Massoud of Compass Holdings. 

“I could lose all my money and could be wrong that the desire for luxury will rebound,” said Edelman, whose leather adorns the chairs in Le Cirque, the New York restaurant. “But I’ve done this with proper cash reserves. If you can’t do that, you shouldn’t be in the game.”

Buffett group wins big in stock buy of Chinese car firm
Christine Tierney / The Detroit News

Legendary investor Warren Buffett hasn't been fortunate with all his holdings over the past year, but one of his picks turned out to be a big winner. 

Buffett's Berkshire Hathaway Inc. agreed last September to pay $230 million for a 10 percent stake in Chinese automaker BYD Co. that had soared in value by the time the deal was finalized in August. BYD shares, listed on the Hong Kong Stock Exchange, have risen from $1.21 last November to $10.55 on Wednesday. 

The runup in BYD's stock, due partly to Buffett's interest, has made its founder Wang Chuanfu the richest man in China, according to the Hurun Report, a list of the wealthiest Chinese. 

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Based in the southern Chinese city of Shenzhen, BYD is a young company that started out making batteries and only entered the car business in 2003. 

But its expertise in lithium-ion batteries, coupled with the rapid growth in the Chinese vehicle market, have attracted a great deal of investor interest. 

China is on track to become the world's No. 1 vehicle market this year, and the government in Beijing is intent on developing a strong domestic auto sector with expertise in clean technologies. 

BYD developed its first electric car, the F3e, in 2006, and is rolling out the e6, a crossover which it displayed early this year at the North American International Auto Show in Detroit. 

BYD expects to sell 400,000 vehicles this year, and its exports are limited to small markets such as Ukraine. But it has ambitious goals and hopes to sell electric cars in the United States, possibly as early as next year. 

"They're a very good company. They have a lot of knowledge on batteries," said Nick Reilly, General Motor Co.'s Shanghai-based executive vice president of international operations. 

Volkswagen AG is considering a battery deal with BYD. 

While its prospects look bright, some analysts caution that the stock has risen too quickly. "Payback might be distant," Deutsche Bank analysts Vincent Ha and Alan Hellawell said in a report assigning a sell rating to BYD shares.

Buffett’s General Re Gets $9 Million to Stay in Connecticut 
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Oct. 22 (Bloomberg) -- Warren Buffett’s General Reinsurance Corp., the most profitable of the billionaire’s insurance units, got a deal for a $9 million loan from Connecticut to keep the Stamford-based company in state for at least four more years. 

The funding “ensures that a company based in our state since 1974 is not lost to a neighboring state,” Governor Jodi Rell said in an Oct. 20 statement. The 20-year, 2 percent loan requires General Re to keep an average of 820 workers in Stamford through 2013, said Jim Watson, a spokesman for the state’s Department of Economic and Commercial Development. 

Buffett, the second-richest American, oversees businesses ranging from jewelry to jet rentals from the Omaha, Nebraska headquarters of Berkshire Hathaway Inc. Buffett said this year he would cut jobs and close facilities at Berkshire units as the recession weighs on results. General Re, with more than 1,900 employees in 45 locations, earned $260 million on underwriting before taxes in this year’s first half. 

“Gen Re had to make a decision -- stay in Stamford or relocate to Westchester County, New York -- and we were not going to lose those dependable jobs,” Rell said. “Smart, targeted loans and investments by the state will prevent” the loss of insurance-industry positions. 

Buffett didn’t respond to a request for comment e-mailed to his assistant Carrie Kizer. Berkshire had about 246,000 employees at the end of 2008, just 19 of whom worked at the company’s headquarters. 

Berkshire Earnings 

Berkshire, which Buffett built into a $150 billion company by investing in out-of-favor companies, reported its first quarterly loss since 2001 on slumping investments earlier this year. The company, which typically makes a quarter to half its profits from insurance, returned to profit in the second quarter with a $3.3 billion net income. 

Geico Corp., Berkshire’s car insurer, made a deal with New York Governor David Paterson in August to receive tax credits valued by the state at about $1.5 million over five years as the company opens a new site and hires 300 people in Amherst. In September, NetJets Inc., Berkshire’s unprofitable plane-leasing unit, announced cuts of more than 300 jobs, or about 5 percent of the workforce. 

The Connecticut loan is the first such deal between General Re and the state. It will be used for “fixtures and equipment” at the company’s new facility, Rell said.

Придобиването на Wachovia увеличи печалбата на Wells Fargo с 98%
21.10.2009 16:30


Американската банка Wells Fargo, която се превърна в най-големия ипотечен кредитор в САЩ през тази година, е отчела рекордна печалба за третото тримесечие. Чрез успешното управление на рисковите заеми и придобиването на Wachovia печалбата се увеличава с 98% на годишна база.

Нетната печалба на Wells Fargo за третото тримесечие нараства до 3,24 млрд. долара, или 56 цента на акция. За сравнение положителният финансов резултат е бил 1,64 млрд. долара, или 49 цента на акция, за същия период на 2008 г. Анализаторите очакваха печалба на акция от 37 цента.

Приходите на Wells Fargo нарастват близо два пъти до 22,5 млрд. долара през третото тримесечие. Въпреки добрите финансови резултати книжата на Wells Fargo поевтиняха с 2,3% до 29,82 долара за акция по време на електронната търговия на Нюйоркската фондова борса, предаде Wall Street Journal.

Wells Fargo е последната от четирите големи щатски банки, която публикува своите финансови резултати за третото тримесечие. JPMorgan, която е втората по активи банка, постигна печалба от 3,6 млрд. долара. Citigroup, която е четвърта в класацията, спечели 101 млн. долара за периода от юли до септември.

Bank of America, която е най-голямата банка в САЩ по размера на своите депозити и активи, отчете загуба от 1 млрд. долара поради нарастването на просрочените заеми. Банката е отделила 11,7 млрд. долара за покриването на кредитни загуби през третото тримесечие.

От началото на тази година пазарната капитализация на Wells Fargo се е повишила с 3,3% и това я превръща в най-печелившата банка на Нюйоркската фондова борса. Инвестиционната компания Berkshire Hathaway на милиардера Уорън Бъфет е най-големият инвеститор в банката с дял от 6,5%.

„огромен прогрес“
21.10.2009 09:12


Милиардерът Уорън Бъфет обяви, че през последната година в икономиката се наблюдава „огромен прогрес“. Въпреки това обаче той се въздържа от прогнози какво би могло да се случи през следващите три или шест месеца.

Във видео интервю, записано преди месец и публикувано вчера, към Бъфет е бил отправен въпроса какво ще се случи с икономиката през последното тримесечие на настоящата и първото тримесечие на следващата година, предава CNBC.

Бъфет е заявил, че „не може да бъде сигурен какво ще се случва в конкретните тримесечия“. Според него икономиката е отбелязала изключителен прогрес, след като е имало голяма паника. „И ако някой не е изпаднал в паника, то той не е разбрал какво се е случвало“, убеден е милиардерът.

„Това, което се случи през септември и октомври 2008 година в частност, ще се помни много, много време. Макар правителствата често да объркват нещата, те за щастие направиха някои много правилни стъпки, много важни неща. Направиха го правилно и ни предпазиха от това да паднем от борда“, смята Бъфет.

„Като следствие от финансовата паника през четвъртото тримесечие реалната икономика бе ударена като с чук. Ние се възстановяваме от това. Пациентът отиде в залата за спешна помощ и няма да излезе напълно от болницата за доста дълго време“, посочва специалистът.

Съветът на Бъфет да се купуват американски акции се отплати с 15% за година
19.10.2009 17:02


Преди точно една година милиардерът Уорън Бъфет отправи препоръка към инвеститорите да се насочат към американски акции. Това се случи в момент на тотална паника на пазарите и с очаквания за още по-голяма нестабилност.

Въпреки всичко обаче Бъфет написа коментар за New York Times, в който обяви, че купува американски акции, за да си осигури „парче от бъдещето на Америка на подценени нива“, припомня CNBC. Тогава милиардерът повтори добре известното правило: „Страхувай се, когато другите са алчни и бъди алчен тогава, когато другите се страхуват“.

Година след съвета на Бъфет, отправен на 17 октомври, широкият американски борсов индекс е напреднал с 14,9 на сто. Не това обаче е основното.

В статията си специалистът посочи, че не се опитва да уцели „момента“ на пазара и че не е залагал на това дали след месец или година пазарите ще му се отплатят. Това е така, тъй като и двата периода се разглеждат от Бъфет като краткосрочни. Практиката на милиардера е да се търсят хоризонти от 5, 10 или 20 години.

Това е добра новина за Бъфет, тъй като моментът тогава бе ужасен за краткосрочно влизане на пазара. Причината е, че предстоеше мощен спад на S&P 500 до дъното от 676,53 пункта, регистрирано на 9 март. Ако някой е успял да уцели това дъно, е получил доходност от над 60 на сто досега.

Основната препоръка на Бъфет е това, че онези, които чакат перфектния момент, поемат огромен риск да закъснеят с влизането си на пазара. Особено ако търсят сигнали, че нещата са започнали да се подобряват.

Поради тази причина Оракулът от Омаха не дава конкретни прогнози за движението на акциите. Единственото, което казва, е това, че „пазарите ще се движат нагоре, може би значително силно, преди сентиментът или икономиката да се подобрят“.