Can a Muckety map predict a corporate acquisition? Notice how the extended Buffett-Gates cartel has surrounded Costco Wholesale Corporation (NASDAQ:COST). Should you hear rumblings about a Berkshire Hathaway acquisition, remember this map. Berkshire vice chairman Charles Munger is a director of Costco. Susan Decker is on the boards of both companies. Warren Buffett pal Bill Gates is a director of Berkshire, and Buffett, of course, is a major benefactor of the Bill and Melinda Gates Foundation.
Big deals: Transactions that shaped 2012 (RichmondBizSense)
Warren Buffett, shopping centers and football: They were fuel for the some of the highest-profile and biggest-money deals announced in Richmond during 2012. Warren Buffett dropped $142 million to rid Richmond-based Media General of its newspaper holdings, including the Richmond Times-Dispatch. The deal, which closed in late June, left the downtown company with 18 television stations and on better footing to keep its hundreds of millions of dollars in debt under control. Fall was the season of huge shopping center transactions. First came the sale of the Shops at White Oak Village. An Arizona firm bought about 440,000 square feet of the Eastern Henrico retail development for $68 million.
Ajay Banga 11 notches ahead of Buffett! (DNAIndia)
Ajaypal Singh Banga, the chief executive officer of Mastercard Inc (NYSE:MA), was named 8th in the Fortune magazine’s The 2012 Businessperson of The Year rankings. That’s the highest ranking notched up by any person of Indian origin. He is also 11 levels ahead of United State’s billionaire and legendary investor Warren Buffett. Banga, 52, – he’s 8 years younger than Manvinder Singh, or Vindi, Banga, former chief of Hindustan Unilever — has steered the electronic payments network company so successfully, it outperformed archrival Visa as a result of which, the share price has more than doubled to $4.94 on Friday from $2 in July 2010, when he was named CEO.
Is it time for us to tackle our Warren Buffett-style tax anomalies? (LeadingCompany)
In his 2012 State of the Union address US President Barack Obama lamented the fact that billionaire Warren Buffett faces a lower tax rate on his income than his secretary. The situation arises because the secretary’s salary income will be taxed at the normal US tax scales. On an income above US$34,500 but below US$83,600, Buffett’s secretary would face a 25% tax rate. But the dividends and capital gains the billionaire investor makes on his directly held investments are likely to be taxed at a maximum rate of 15%. Political deliberations to tackle the fiscal cliff in the US are focusing heavily on the tax system that gives rise to these types of anomalies.
The Week Explained: Insider buy-backs (SCMP)
Directors of listed Hong Kong companies have been increasing the purchases of their own shares after a lull in this kind of activity earlier in the year. Also, rather intriguingly, Berkshire Hathaway has made a US$1.2 billion buy-back of company shares. The purchase defies US investment guru (and Berkshire head) Warren Buffett’s own maxims. Buffett is famous for criticising directors for overpaying for shares in their own companies, which he says is done to pump up the share price. However, earlier in the month Berkshire stepped in to buy 9,200 class A shares at US$131,000 per share, this being Berkshire’s relatively illiquid share class. The firm did so at a slight premium to the closing price on the day before the purchase was made. It was speculated he wanted to prevent the release of these shares on the market, which could have caused a fall in his company’s share price.
Hathaway Effect Again? Wardrobe Malfunction Gives Buffett a Rise (HuffingtonPost)
A couple years ago I suggested that there was a “Hathaway Effect”: When actress Anne Hathaway was in the news, it might increase the share price for Warren Buffett’s BerkshireHathaway company. Turns out that Anne’s recent wardrobe malfunction may have shot the price of Buffett’s company up a whopping 2.4%. For those who didn’t hear, Anne was recently photographed coming out of a limo at the New York premiere of her new film Les Miserables – but she neglected to wear underwear that day.
Abstract artist Nicole Buffett (SFGate)
There was a time when Nicole Buffett couldn’t afford cable TV or health insurance, perhaps not unusual for an abstract artist. It may not even be unusual given the fact that she’s a granddaughter of that famous billionaire investor Warren Buffett, who helped see that his children’s and grandchildren’s educations were paid for, and then told them no further inheritance would be forthcoming – leaving them responsible for their own financial health. Fortunately, Nicole Buffett, 36, who grew up in San Francisco, knew from childhood what she wanted to do with her life, and has been forging her own path to success ever since.
Book value per share? Let us do the math for you (Omaha)
Berkshire Hathaway Inc. (NYSE:BRK.A)‘s recent purchase of $1.2 billion worth of its own stock is prompting discussion, so perhaps a bit of a math lesson is in order. Berkshire paid $131,000 for each of 9,200 shares to the estate of a deceased longtime shareholder. The Omaha investment company, headed by Chairman and CEO Warren Buffett, said it may buy more of its shares at prices within a limit of 120 percent of its book value per share. What’s that again?
