Wall Street Folly

• TARP Panel Finds Fault With GMAC Bailouts
• Citicorp eyes $20bn profit
• Geithner warns of rift on EU regulation
• Mexico’s Slim becomes ‘world’s richest’ person
• Forbes: The World’s Billionaires
• Court finds former partner of Cazenove guilty on five counts of insider dealing
• Nomura Departures Rise as Former Lehman Bankers Leave Read the rest of this entry »

Tags: Bailouts, Bill Gates, Billionaires, Carlos Slim Helu, Cazenove, Citigroup, GMAC, Insider Trading, Lehman Brothers, Nomura, Revolving Door, TARP, U.S.. Treasury, UK, Vikram Pandit; Tim Geithner, Warren Buffett, Wealth

Tags: Bonuses, Compensation, Goldman Sachs, HSBC, Lloyd Blankfein, Warren Buffett

Tags: Berkshire Hathaway, Charlie Rangel, Ethically challenged politicians, Hedge funds, Lehman Brothers, Nomura, Politics, Warren Buffett

• Turnout Is Key in Massachusetts Battle
• Credit Suisse Cuts Bonus Pool to Spread Costs From U.K. Taxes
• Wall Street May Seek to Sway Congress by Hiring Top Lawyer
• US investment banks divided over levy
• Citigroup Reports 2009 Full Year Managed Revenues(1) of $91.1 Billion and Expenses of $47.8 Billion
• AIG Tries to Defuse Bonus Pay Showdown
• Berkshire Nears Smaller Baby Bs
• Buffett Cuts Berkshire Stake Below 25% on Rail Deal, Charity Read the rest of this entry »

Tags: AIG, Bankruptcy, Barack Obama, Berkshire Hathaway, Bonuses, Citigroup, Compensation, Credit Suisse, Mergers, Politics, Taxes, UK, Warren Buffett

• Thiel gets a tanning
• A New Era For Porn?
• Sir Richard Branson taps Blackstone for assault on Northern Rock
• The Buffett Paradox Read the rest of this entry »

Tags: Berkshire Hathaway, Blackstone Group, Clarium, Hedge funds, Northern Rock, Peter Thiel, Porn, Richard Branson, Warren Buffett

• Citi’s Creator, Alone With His Regrets
• Buffett Posts Worst Stock Performance Against S&P 500 in Decade
• Mogul finally free of stalker
• Hedge-fund fight imperils Olympic ski venue
• Small fund, big $
• More Brokers Flee Big Firms, Taking Investors With Them Read the rest of this entry »

Tags: Berkshire Hathaway, Citigroup, Fortress, Hedge funds, Sandy Weill, Warren Buffett

• Lehman Sues Barclays Capital
• America’s Newest Land Baron: FDIC
• Geithner under fire over AIG payments
• Audit Is Critical of N.Y. Fed in AIG Bailout
• New York Fed under fire over crisis bank payments
• TARP Can’t Save Some Banks
• Millions may have to repay part of stimulus tax credit
• Buffett’s Berkshire Discloses Exxon, Nestle Stakes
• Microsoft Co-Founder Treated for Lymphoma Read the rest of this entry »

Tags: AIG, Barclays, Bernie Madoff, Bill Ackman, GMAC, Goldman Sachs, Hedge funds, Lehman Brothers, Paul Allen, TARP, Tim Geithner, Wachova, Warren Buffett

• Mack, Blankfein Said to Meet Fed Officials on Pay
• Fed tells banks to adopt pay rules early
• Berkshire Buys Burlington Northern in Buffett’s Biggest Takeover
• Press Release: Berkshire Hathaway Inc. to Acquire Burlington Northern Santa Fe Corporation (BNSF) for $100 Per Share in Cash and Stock
• Barclays Rejigs Management in Major Restructuring
• RBS, Lloyds Get $51 Billion in Second Bank Bailout
• Executive quits in Galleon case
• Bernanke Housing Gamble May Bring Pressure to Extend Fed Aid
• UBS Reports Fourth Consecutive Loss on Debt Charge
• Justices tackle case on investment fees Read the rest of this entry »

Tags: Barclays, Berkshire Hathaway, Bonuses, California, CIT, Compensation, Fed, Galleon, Goldman Sachs, Morgan Stanley, Railroads, SCOTUS, UBS, Warren Buffett

Warren Buffett chatted with Bianna Golodryga this morning on Good Morning America and he shared his thoughts on whether or not we need a second stimulus package: Read the rest of this entry »

Tags: Apple, Barack Obama, Ben Bernanke, Economy, Fed, Politics, Steve Jobs, video, Warren Buffett

Here’s the 13F Chart study for Berkshire Hathaway updated for Q1 2009 (priced as of 6/1/09)

As always, keep in mind that the 13F filing is a snapshot at 3/31/09, and there may portfolio changes since then:

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Tags: 13F Chart Study, Berkshire Hathaway, Charts, Warren Buffett

Here’s the 13F Chart study for Warren Buffett’s Berkshire Hathaway updated as of 3/31/09.

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Tags: 13F, 13F Charts, Berkshire Hathaway, Charts, investing, investor, Oracle of Omaha, Warren Buffett

Warren Buffett's trusty Goldman Sachs banker Byron Trott is leaving the firm to start his own shop according to the WSJ.  BDT Capital Partners could raise as much as $2 billion and will seek to invest and advise companies controlled by families or entrepreneurs. Berkshire Hathaway will be an investor. According to Warren Buffett "we'll have a modest partnership interest", although he didn't specify an amount. "We will not be the big dog".  Despite Trott's departure, Goldman is expected to still get plenty of busness from Buffett…..

Read the rest of this entry »

Tags: Goldman Sachs

Were it not for an economy in shambles, it would seem unthinkable for Berkshire Hathaway to be rated anything but AAA.  But Even Berkshire isn't looking as invinvible as it has always seemed, and guiding light Warren Buffett isn't getting any younger.  And with that, Fitch lowered the company's default rating to AA+, and it now rates the company's senior unsecured debt at AA.  The insurance and reinsurance units are still rated AAA but with a negative outlook.  Berkshire joins GE in losing its AAA; earlier in the day S&P cut GE's rating to AA+.

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Tags: Ratings

If you haven't yet read it, here's the text of Warren Buffett's new annual letter to Berkshire Hathaway shareholders where he takes the blame for the firm's worst performance in its 44 year history.  He said "During 2008 I did some dumb things in investments" adding that "I made some errors of omission, sucking my thumb when new facts came in that should have caused me to re-examine my thinking and promptly take action."

"The economy will be in shambles throughout 2009 — and, for that matter, probably well beyond — but that conclusion does not tell us whether the stock market will rise or fall."  Despite all of the problems, he says optimistically that "America's best days lie ahead."

Here's our 13F Chart study of Berkshire Hathaway's reported stock holdings at the end of 2008.  It ain't pretty:

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Tags: 13F Charts

Evidence that the debt market still is really tough: Harley-Davidson issued $600 million senior unsecured notes with a whopping 15% coupon and Warren Buffett's Berkshire Hathaway is scarfing up $300 million of them.  The other half of the note issue is being purchased by Davis Selected Advisers LP, which is Harley's largest stockholder.

Berkshire Agrees to Buy $300 Million of Harley Debt – Bloomberg

Tags: high yield bonds

• Buffett Says the U.S. Is in Midst of an ‘Economic Pearl Harbor’
• Hedge Fund Fees Too High?
• Ackermann Warns Banks Face 'Fragile Situation' as Economy Slows
• ‘Time to Sell’ Treasuries, Biggest Korean Fund Says

Read the rest of this entry »

Tags: Deutsche Bank, Fees, Hedge funds

The 13F hedge fund chart studies we track were updated over the weekend.  You can find them here.

Tags: 13F Charts, Appaloosa, Atticus, Baupost, Carl Icahn, Clarium Capital, Dan Loeb, Dave Tepper, Farallon, George Soros, GLG Partners, Greenlight Capital, Harbinger, Hedge funds, MatlinPatterson, Maverick Capital, Och Ziff, Passport Capital, Paulson & Co, Pequot Capital, Perry Capital, Philippe Jabre, Ramius, SAC Capital

Over two years ago, Nicole Buffett, adopted daughter of Warren Buffett's son Peter, famously made headlines when she dished about the family in Jamie Johnson's indie documentary "The One Percent" about rich kids, and subsequently on Oprah.  Grandfather Warren Buffett, said to be furious, cut her off, saying "I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted you as a niece or a cousin."   Apparently the struggling artist isn't doing well financially, unable to afford health insurance or cable, and she's dishing in Marie Claire Magazine.  According to Page Six:

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Here are charts for the stocks in the recently released 9/30/08 13F for Berkshire
Hathaway:

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Tags: 13F Charts, Charts

Here’s the Oracle in an excellent interview with Charlie Rose that took place on 10/1/08.

Tags: Charlie Rose

Warren Buffett’s finding lots of companies to invest in these days:  Echoing his investment in Goldman Sachs, the Oracle is buying $3 billion of General Electric’s perpetual preferred stock in a private deal.  It’s pays a 10% dividend but unlike Buffett’s recent Goldman investment, isn’t callable for three years. He’ll also get warrants to buy $3 billion in GE common stock with a strike price of $22.25.   The only investment banker Buffett trusts, Goldman’s Byron Trott, hooked him up with GE according to Buffett, who was interviewed on CNBC.

Here’s the press release from GE (which is also plans to sell at least $12 billion in common stock ina public offering):

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Tags: Goldman Sachs

When your on a roll with a big infusion of cash from Warren Buffett that the market seems to like, why not double the size of the the public stock offering that had simultaneously been announced?  Sounds like that’s what Goldman is planning to do, selling $5 billion of stock instead of $2.5 billion.  The stock is down slightly from where it closed in the after hours trading session (around $133.34) to $131.64 this morning in pre-market trading, but up substantially over yesterday’s regular session close of $125.05 before the Buffett news was announced.
Goldman Sachs Said to Double Stock Sale to $5 Billion – Bloomberg

Tags: Goldman Sachs

And on that after hours news, Goldman shares skyrocketed, taking other financials and futures up as well.  Goldman also expects to raise another $2.5 billion from the public sale of common stock…..

Following are after hours charts, and the press release.

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Tags: Goldman Sachs

Berkshire Hathaway hasn’t had such a great first half of 2008, down nearly
20% since December, its worst first half performance since 1990, notes
Bloomberg.

Hank
Paulson wants regulatory changes that would let failing financial firms
fail, while not threatening market stability.  Included in those changes
would be steps to use taxpayers money to aid financial firms with the
president’s approval.

Tags: Henry Paulson