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Saturday, July 11, 2020

More On The Berkshire Hathaway -- Dominion Deal -- July 11, 2002

From CNN, and other sources, more on the Berkshire Hathaway / Dominion natural gas deal.

Some data points (numbers may be rounded)
  • BRK, market cap: $445 billion
    • most recent price BRK-B share price: $180
    • 52-week high: $230 (market cap at this share price: $565 billion)
  • BRK: down 20% "this year"; 
    • S&P this year: down just 2%
  • 1Q20: cash -- $137 billion
  • Dominion natural gas purchase: $4 billion in cash; $6 billion in debt
    • BRK's last major deal, 2015: Precision Castparts for $37 billion
    • Dominion deal simply fills out a glaring gap in Berkshire's energy portflio
    • compare that $10 billion for Dominion with $10 billion for share of OXY late last year
  • Buffett: turns 90 years old next month, August, 2020
    • likely successors, one or the other or both:
    • Greg Abel: runs Berkshire's non-insurance business
      • an energy industry veteran
      • probably behind both the Dominion and the OXY deal
    • Ajit Jain: vice-chairman who runs the insurance operations
  • buyer of AMZN for Warren Buffett, either one of the following, either may be next chief investment officer:
    • Todd Combs, GEICO/CEO, member of the board, JPM, or
    • Ted Weschler
  • Big gap: the name of the vice-chairman, if there is anyone, who runs the "high-tech investments" for the company, maybe Weschler
More on Berkshire Hathaway and Dominion:
BRK portfolio at this link. This link does not include those companies that BRK owns outright.

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