Alternatives to Buffett’s ‘terrible’ bonds (FT)
Warren Buffett, America’s best-known investor and the world’s fourth-richest person, has made his feelings about bonds clear, declaring them “terrible investments”. Speaking on US television this week, the chief executive of Berkshire Hathaway Inc. (NYSE:BRK.A) said that many investors had been drawn to bonds because their prices tend to rise as interest rates fall. But, he warned, when the situation changes “people could lose a lot of money if they’re in long-term bonds”.
Who’s worth more, Dorsey or Buffett? (BizJournals)
New economy fundraiser, meet old economy fundraiser. Kompolt, the same organization behind the annual, hugely successful auction for a lunch date with Warren Buffett, has updated its model for the new millennium. Lunch with Buffett is still on offer — it raised $3.5 million last year on behalf of Glide Memorial Church — but now a sit-down meal with Jack Dorsey is open to offers as well. The co-founder of Twitter and CEO of Square hit the eBay Inc (NASDAQ:EBAY) auction block May 6 with bids starting at $5,000 for an intimate sit-down lunch with Dorsey at the offices of Square in San Francisco. The winning bidder can bring up to seven friends along.
The Buffett Era Begins (Fool)
On this day in economic and business history…”A policy row caused by the infusion of outside money into Berkshire Hathaway Inc. (NYSE:BRK.A) rocked the 76-year-old textile company today and resulted in the resignation of two top officers.” This brief New York Times introduction to the events of May 10, 1965 was the first time the world got to know Warren Buffett, majority owner of Berkshire Hathaway. The 35-year-old Buffett had held a large stake in Berkshire since 1962, and made a proclamation he would soon regret (and walk back) once becoming majority owner: “We’re going to continue to sell the same goods to the same customers.” The early Buffet-era Berkshire Hathaway Inc. (NYSE:BRK.A) investors are undoubtedly very, very glad he didn’t keep that promise.
Is Buffett’s Wind Power Attracting Facebook to Iowa? (WallStCheatSheet)
Warren Buffett’s MidAmerican Energy has announced plans to bet $1.9 billion on wind power. The investment will be used to build additional wind farms in Iowa that will increase the company’s wind generating capacity in the state by about half and represent the single largest economic investment in the state, as officials told The Detroit Free Press. The result will be 656 wind turbines, which the utility company will construct by 2015. MidAmerican Energy is a subsidiary of MidAmerican Energy Holdings Co., which Berkshire Hathaway Inc. (NYSE:BRK.A) controls.
GM, Berkshire Lead Corporate Bond Sales of $39.5 Billion in U.S. (BusinessWeek)
General Motors Company (NYSE:GM)’s finance unit and billionaire Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) led dollar-denominated sales of at least $39.5 billion this week as relative yields narrowed. General Motors Financial Co. sold $2.5 billion in its first issue in almost nine months while Berkshire Hathaway Finance Corp. raised $1 billion in its second sale this year, according to data compiled by Bloomberg. Sales slowed from $46.4 billion in the last period, the busiest in six weeks with Apple Inc. (NASDAQ:AAPL)’s record $17 billion issue.