5 ms·

Obviously the devil's in the details. But it seems more like fair company at a great price than great company at a fair price. The latter is what Berkshire is k

• _delirium 14y ago
  Berkshire has been doing quite a bit of the first category too lately. They have such a gigantic cash pile that they can operate as kind of a private-sector bailout fund, bailing out companies that, with Berkshire financing, could survive past a rough spot, and extracting excellent terms as a result (because the companies are often in a short-term position that gives them little room to refuse the offer). For example, their 2008 investment-with-some-loan-characteristics to Goldman Sachs in the middle of the financial crisis had a similar interest/equity structure, where they were granted special 10%-dividend-paying shares.
  • bdunbar 14y ago
    they can operate as kind of a private-sector bailout fund, Or, as we used to call it: Buy low, sell high.
    • _delirium 14y ago
      That's not really what they're doing, though; it's buying on special, negotiated terms, with bond-style percentage-of-investment payouts in return.
  • netcan 14y ago
    Maybe it is because of that stock/bond blurring you mention. There's really no such thing as a great stock.