Investing

Warren Buffett Covid19 Buy - Dominion Energy

  • Last Updated:
  • Jul 17th, 2020 4:42 pm
[OP]
Deal Addict
Jul 12, 2008
4636 posts
1330 upvotes
GTA

Warren Buffett Covid19 Buy - Dominion Energy

“ Warren Buffett’s Berkshire Hathaway is finally pulling the trigger.

The conglomerate is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy. Including the assumption of debt, the deal totals almost $10 billion. It’s the first major purchase from Berkshire since the coronavirus pandemic and subsequent market collapse in March.

At his annual shareholder meeting in May, Buffett revealed that Berkshire had built up a record $137 billion cash hoard as the financial market tanked, and that he hadn’t seen many favorable deals, despite the stock market’s deep swoon.”

https://www.cnbc.com/2020/07/05/warren- ... -deal.html
13 replies
Deal Expert
User avatar
Oct 26, 2003
37180 posts
5173 upvotes
Winnipeg
Buffett is always about buying companies, if he bought the index post crash it would have worked out well.
WTB amazon gc @90%
Deal Fanatic
May 22, 2003
8569 posts
5396 upvotes
Vancouver
I sold all my Berkshire shares earlier this year. IMHO, value investing is not as relevant in today's markets market for growth, especially when it comes to tech stocks. He's made some questionable moves in the last few years: Oracle, Occidental Petroleum, Airlines, Heinz, Wells Fargo, etc.
Jr. Member
Sep 23, 2013
148 posts
324 upvotes
La belle province
Dominion Energy, Duke Energy Cancel $8 Bln Atlantic Coast Pipeline Project

https://www.nasdaq.com/articles/dominio ... 2020-07-05

JUL 5, 2020 10:22PM EDT

(RTTNews) - Dominion Energy (D) and Duke Energy (DUK) said that they have cancelled proposed $8 billion Atlantic Coast Pipeline project, citing ongoing delays and increasing cost uncertainty, even after a favorable Supreme Court ruling last month.
Deal Addict
Jul 23, 2007
4766 posts
3858 upvotes
I never underestimate Buffett since I first read about him in the early 1980's.

I have been adding some cash from savings and dividends to a couple of my Canadian pipelines through the pandemic. With dividend yields in the 7 to 9% range, I'm certainly not complaining. Now whether there will be dividend cuts moving forward, I've no idea. That's just part of the risk I take.
[OP]
Deal Addict
Jul 12, 2008
4636 posts
1330 upvotes
GTA
jeffyjaixx wrote: so new ATH's?
Yes especially on the American side, Nasdaq is already there. Major Vaccine news coming by September.
Deal Addict
User avatar
Mar 25, 2012
1872 posts
1064 upvotes
Kelowna
badmus wrote: “ Warren Buffett’s Berkshire Hathaway is finally pulling the trigger.

The conglomerate is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy. Including the assumption of debt, the deal totals almost $10 billion. It’s the first major purchase from Berkshire since the coronavirus pandemic and subsequent market collapse in March.

At his annual shareholder meeting in May, Buffett revealed that Berkshire had built up a record $137 billion cash hoard as the financial market tanked, and that he hadn’t seen many favorable deals, despite the stock market’s deep swoon.”

https://www.cnbc.com/2020/07/05/warren- ... -deal.html
I doubt he had much involvement in this buy. Pretty sure Berkshire Hathaway Energy CEO Greg Abel was able to broker this deal, with only cursory approval by Buffett at the Berkshire board level. In the grand scheme of things, $4 billion is a little better than chump change to and for Berkshire. ;)

Also, of that $137 billion, he also said the vast majority of that (probably 60-75%) would remain in U.S. treasury bills and bonds. So, call it $80-100 billion. They have, at that time, about $40 billion in "dry powder." :)

Cheers,
Doug
Deal Addict
Jul 23, 2007
4766 posts
3858 upvotes
Warren Buffett thinks natural gas will be sticking around for a long time

Warren Buffett’s US$9.7 billion bet on natural gas looks even more contrarian today.

As Democrat Joe Biden unveils a staggering US$2 trillion clean-energy plan — the most ambitious climate package ever offered by a presumptive presidential nominee — Buffett’s recent deal to buy Dominion Energy Inc.’s natural gas assets is a stark sign he’s expecting that the market’s shift away from fossil fuels won’t happen overnight.

https://financialpost.com/commodities/e ... b9f245c91/
Deal Addict
Jun 15, 2012
2837 posts
1010 upvotes
Saskatoon
badmus wrote: Yes especially on the American side, Nasdaq is already there. Major Vaccine news coming by September.
There is no vaccine against AIDS(Retroviruses) in forty years, nor common cold (some caused by coronaviruses). Vaccine is a gamble at this time.
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

“Because gold is honest money it is disliked by dishonest men.” – R. Paul
Deal Addict
Jun 15, 2012
2837 posts
1010 upvotes
Saskatoon
Stryker wrote: Warren Buffett thinks natural gas will be sticking around for a long time

Warren Buffett’s US$9.7 billion bet on natural gas looks even more contrarian today.

As Democrat Joe Biden unveils a staggering US$2 trillion clean-energy plan — the most ambitious climate package ever offered by a presumptive presidential nominee — Buffett’s recent deal to buy Dominion Energy Inc.’s natural gas assets is a stark sign he’s expecting that the market’s shift away from fossil fuels won’t happen overnight.

https://financialpost.com/commodities/e ... b9f245c91/
What will it mean for the US market if incumbent president (who seems to made stock market pumping his primary duty)is not re-elected in fall?
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

“Because gold is honest money it is disliked by dishonest men.” – R. Paul
[OP]
Deal Addict
Jul 12, 2008
4636 posts
1330 upvotes
GTA
During Obama the Dow went from 7949 to 19827 and Clinton the next democrat was during the dot com boom.

Biden has said he won’t pump the market but he won’t hurt/penalize it either so Biden might be better than Trump with his endless trade wars and coronavirus mishandling.
Deal Addict
Aug 16, 2015
1122 posts
463 upvotes
ukrainiandude wrote: What will it mean for the US market if incumbent president (who seems to made stock market pumping his primary duty)is not re-elected in fall?
pretty funny how it all turned out. campaigned saying he could fix all of America's problems. gets in, only cares about pumping stock market.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)