Monday, May 10, 2021

Random Thought Before I Go Off-Line For The Next Several Hours -- May 10, 2021

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here

The annual meeting was a week ago Saturday. 

Ever since, his shares have been on a tear, up again. 

Except for confirming Buffett does have a transition plan and has named his successor, one can argue nothing new came out of that meeting that we didn't already know.

So, the natural question is: why is BRK-B (and BRK-A) on a tear right now?

I'm looking through my oil-stained spectacles and into my oily-crystal ball (that needs cleaning) and running my right palm over an oil-streaked Ouija board and see/hear only two things:

  • DAPL - CBR
  • Colonial Pipeline - CBR (see first comment)

For those who suggest this:

  • the re-opening trade; and,
  • all his holdings are doing well (accept his biggest -- AAPL) ... 

... a reminder to take a look at this post not long ago. For Berkshire Hathaway, BNSF accounts for:

  • 9% of its revenue, but
  • 25% of its earnings

And, yes, BNSF will haul a lot more than oil. Like grain. To export terminals on the west coast.

But as noted, I'm looking through oil-stained spectacles ...

... later ... see first comment --- the reader might also ask by WTI is surging in light of the Colonial Pipeline shut down -- with refined products nowhere to go, and WTI building up in the system, one would think WTI would drop, nor rise, in price. 

**************************
GBR

Grain by rail.

Canada's wheat exports rose in early May despite dwindling global demand for old crop, while new crop seeding quickened from earlier in the spring following a return of favorable weather conditions. Link here.

2 comments:

  1. Colonial pipeline transports refined products. How does crude by rail do anything for the colonial shutdown?

    ReplyDelete
    Replies
    1. You are correct. I was doing this with a broad stroke. My mistake.

      Delete

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