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Breakingviews: Buffett’s annual powwow

Friday, May 03, 2013 - 02:42

May 3 - Reynolds Holding and Agnes T. Crane discuss why Berkshire Hathaway shareholders should be in a better mood this year at Warren Buffett’s annual shindig this weekend.

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Big doings this weekend at an Omaha Nebraska it's Warren Buffett's annual ship date for shareholders now. Anderson has been described in the past as they love fest last year there were certainly haven't really no grumbling and it was still on managed care what's gonna. People -- warm -- he's made a lot of people very well itself a little on the oracle for naught for nothing exactly. Now and one of the things is that last year there was the politics over the Buffett rule which he was saying rich should pay more taxes when it's something that can run in the sun is that it couldn't -- included some of his investors do not have very what that. And the other thing was that this its share price was -- -- was doing very well this year. Share prices -- -- to the last meeting it's it's risen there -- -- responsible for the as a coupled with the market overall is going up -- it's still outperformed S&P 500. The other thing is that he he's been able to consummate -- deal he's he's had some trouble doing big deals that she needs to do it kind of make it different returns you know he he joined up with private equity firm hacked by Heinz. And that's gonna give him on 9% coupon on the preferred shares -- like -- He's and also increased. The limit her for buybacks basically saying -- he's he's loosening up a little bit on on buybacks -- quality you know -- He's well he's not a and it's evident. Shore but -- his whole philosophy is that he should be about people basically are investing with him as he is able to take money. And invested and bring shareholder guy so when I was company still has a compliment you can hold a problem he has tools you watch -- and -- it's kind of -- yeah but part of that is the size. You know Berkshire to -- it's -- it's an enormous company I think it's a conglomerate. And so that's one of the issues and new and -- and everybody's like Apple's famous as well when you get back cash cushion to -- investors start wondering -- Why does give it to me because -- academics. That's part of that's an artist he -- this so called problems I mean he's still on the market he's in -- he's always in the market looking sort of bail them last year he said. When he -- he wanted he wanted to do that without when he east we still haven't seen. So get it you need those big deals because that's what's gonna make the difference in terms of boosting returns. Yeah he and he can surprise people as you point out indefinitely -- a very high standard so you never know where is gonna go what is candidate. We'll look forward to seeing what happens over the weekend. And in the meantime stay tuned for more breaking news next week.

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Breakingviews: Buffett’s annual powwow

Friday, May 03, 2013 - 02:42