Berkshire Hathaway Inc. Class B
Norfolk Southern’s Intermodal Slump Equitable with Rival CSX
Norfolk Southern’s (NSC) total intermodal traffic for the week ended April 30, 2016, declined by 7.6%, at nearly 73,000 containers and trailers. This compares with 79,000-plus units in the corresponding week of 2015.
Why high-grade debt issuance increased more than three-fold
In the week ending August 8, weekly investment-grade bond (LQD) issuance surged by 222%, week-over-week to come in at $24.975 billion over 19 deals. Issuance was driven by refinancing older and costlier debt, acquisition related financing, share-repurchases, and other general corporate purposes.
Scale: A Boon or Bane for Apple and Warren Buffett?
For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale.
What Can We Expect from Norfolk Southern’s 3Q16 Earnings?
Virginia-based Norfolk Southern (NSC) is set to announce its 3Q16 earnings on October 26, 2016. In this series, we’ll analyze analysts’ estimates for the company’s revenues and margins.
Union Pacific’s Carloads Slide Less than Rival BNSF Railway’s Railcars
Union Pacific’s combined coal and coke carloads fell by 26.2% in the latest reported week of 2016 on a year-over-year basis.
Why Did CNI’s Petroleum and Chemicals Revenues Slump in 1Q16?
The carloads in CNI’s Petroleum and Chemicals segment fell by 7% in 1Q16 compared with 1Q15. This was mainly due to lower volumes of crude oil as a result of higher pipeline capacity.
Berkshire’s Energy Business Rises on Rates and Utilities in 3Q
BHE’s earnings before taxes rose to $1,246 million in 3Q16 as compared to $1,153 million during the same quarter last year.
PRB coal producers may benefit from restocking at utilities
At the beginning of winter, the PRB coal producers are struggling to get enough rail cars to meet utilities’ demand. The PRB coal producers may see increased demand well into 2015.
Berkshire Hathaway’s BHE Benefits from Power Stations in 2Q16
BHE’s earnings before taxes rose to $666 million in 2Q16, as compared to $649 million during the same quarter last year.
How Union Pacific’s Carloads Compared with Overall US Railroads
In the week ended December 3, Union Pacific’s (UNP) overall railcars fell 2.6% to 95,000-plus units from ~98,000 units in the corresponding week of 2015.
Comparing Union Pacific’s Freight Volumes with the Industry in Week 33
In week 33 of 2017, Union Pacific (UNP) recorded a marginal rise of 0.6% in its railcars, excluding intermodal.
Comparing Union Pacific’s Carloads
Union Pacific’s carloads In the western United States, Union Pacific (UNP) competes with BNSF Railway, which is owned by Berkshire Hathaway (BRK-B). In the week ended February 18, 2017, UNP’s overall railcar volumes grew 7.2% YoY (year-over-year) to ~96,000 units. Railcar volumes, excluding coal and coke, rose 1.8% YoY to 70,000 units, compared with 69,000 units in […]
BNSF Railway Started Week 1 with Higher Freight Volumes
In the week ended January 6, 2018, Berkshire Hathaway–controlled BNSF Railway (BRK-B) reported a low single-digit rise in carload traffic.
Comparing BNSF Railway’s Freight Volumes with the Industry in Week 36
Berkshire Hathaway–owned BNSF Railway’s (BRK-B) railcar traffic fell 1.4% in the week ended September 9, 2017.
US Freight Rail Volumes Surge—Is a Recovery in Sight?
The total US carload traffic for the first 13 weeks of 2017 reached ~3.3 million carloads, a rise of 5.7% compared to the same point in 2016.
How Did BNSF’s Traffic Fare in Week Ending July 16?
BNSF Railway’s total railcars for the week ended July 16, 2016, fell by 1.8% to 99,000 units compared with 100,000 plus units on a year-over-year basis.
Alcoa Lowers Guidance for Aerospace Business for the Second Time
During its 3Q16 earnings call, Alcoa reduced its EPS segment’s fiscal 2016 revenue guidance to $5.6 billion–$5.8 billion from $5.9 billion–$6.1 billion.
How Union Pacific’s Carloads Compare to BNSF Railway’s
In the Western United States, Union Pacific (UNP) competes with BNSF Railway, which is owned by Berkshire Hathaway (BRK-B).
BNSF Railway: Volume Growth Was Higher Than Industry’s in Week 37
Berkshire Hathaway’s privately owned BNSF Railway’s (BRK.B) railcar traffic expanded marginally 1.6% in the week ended September 16, 2017.
BNSF: A Jewel in Berkshire Hathaway’s Crown
Burlington Northern Santa Fe (or BNSF) owns and operates the largest rail network in North America through its wholly owned subsidiary, BNSF Railway Company.
Alcoa’s Split: Is the ‘Crown Jewel’ Doing as Expected?
When the split was announced last year, Arconic was supposed to be the crown jewel that would help drive value for shareholders once listed as a separate entity.
Did BNSF’s Intermodal Volumes Shrink Too Much?
BNSF Railway’s (BRK-B) total intermodal traffic for the week ended June 4, 2016, was down by 14.8%.
Other than Coal Commodities Drove Union Pacific’s Carloads Higher
In the reported week, UNP’s combined coal (ARLP) and coke carloads fell 8.1% on a year-over-year basis.
Union Pacific: Has Hurricane Harvey Impacted Freight Volumes?
In the week ended September 2, 2017, Union Pacific (UNP) recorded a 12.7% fall in railcar traffic.
Which Commodity Groups Drove Union Pacific’s Carloads Higher?
In the reported week, UNP’s combined coal (ARLP) and coke carloads fell 7.7% on a year-over-year basis. UNP’s coal revenues fell ~20% in 3Q16.
Is President Trump Robbing Peter to Pay Paul?
While higher steel prices benefit US steel producers, they raise input costs for downstream manufacturers.
How Do Union Pacific’s Carloads Compare with Industry Volumes?
In the week ended July 23, Union Pacific’s total railcars declined by 6.3% to 94,000 units from ~100,000 units in the corresponding week of 2015.
A Look at Union Pacific’s Carloads in the 4th Week of 2017
Union Pacific’s carloads In the western United States, Union Pacific (UNP) competes with BNSF Railway, which is owned by Berkshire Hathaway (BRK-B), In the week ended January 28, 2017, UNP’s overall railcar volumes contracted 0.5% to ~95,000 units, flat compared with the volumes reported in the corresponding week of 2016. Railcar volumes, excluding coal and coke, […]
Why Profit Margins Vary across the Aluminum Value Chain
The profit margins vary across the aluminum value chain. Upstream aluminum producers’ earnings depend on their position on the cost curve.
Union Pacific: What Led to the Decline in Freight Volumes in Week 34?
In the week ended August 26, 2017, Union Pacific (UNP) registered a 2% decline in its overall railcars.
Buffett’s Berkshire Doubles Down on Delta amid Boeing Scare
Berkshire Hathaway (BRK-B) has announced that it has added more shares of Delta Airlines (DAL) to its portfolio.
BNSF Railway’s Intermodal Volumes Matter
In the eighth week of 2017, BNSF’s overall intermodal traffic rose slightly by 0.8% YoY to ~100,000 containers and trailers.
Is the US Economy Slowing Down? Trump’s Views versus Buffett’s
On multiple recent occasions, US President Donald Trump has said that the US economy is doing very well.
US Rail Traffic Tumbles along with Canadian and Mexican Peers
US railcar (TRN) traffic fell by 5.3% to ~262,000 units, as compared to nearly 287,000 units in the week ended July 25, 2015.
How BNSF’s Carloads Compared to Rival Union Pacific
BNSF Railway’s (BRK-B) total railcars for the week ended December 10, 2016, fell 5.5% to ~95,000 units, compared to ~100,000 units on a year-over-year basis.
Kansas City Southern: Trailer Volumes Drive Intermodal Growth
In the week ended April 1, 2017, KSU reported a year-over-year rise of 10% in its overall intermodal traffic.
Union Pacific: Intermodal Rise Limits Fall in Railcars in Week 36
Union Pacific (UNP) reported lower freight volumes due to the impact of Hurricane Harvey.
How BNSF’s Carloads Compare to UNP’s
BNSF Railway’s total railcars for the week ended July 9, 2016, fell by 11% to 85,000 plus units compared with 96,000 plus units on a year-over-year basis.
Week 49: US Rail Freight Traffic Climbs
On December 13, 2017, the AAR (Association of American Railroads) released North American railroads’ freight data for the week ended December 9, 2017, or Week 49.
In the 13th Week of 2017, BNSF Railway Moved More Trailers Than UNP
In the 13th week of 2017, BNSF Railway (BRK-B) recorded a 17.6% rise in its overall intermodal traffic on a year-over-year basis.
Mexican and US Rail Traffic in the Red Zone
The Association of American Railroads has published the North American freight rail data for the week ended October 8, 2016.
How Do Union Pacific’s Carloads Compare with Rival BNSF’s?
Union Pacific (UNP) competes with Berkshire Hathaway owned BNSF Railway (BRK-B) in the Western US.
How Union Pacific’s Carloads Compare to the Industry
In the week ended August 27, 2016, Union Pacific’s railcar volumes declined by 6.9%, at 98,000-plus units from 105,000-plus units in the corresponding week in 2015.
These Commodity Groups Boosted Union Pacific’s Carloads Last Week
In the week ended February 25, 2017, UNP’s overall railcar volumes grew 5.4% YoY to ~95,000 units.
Warren Buffett Added Apple Stock in 3Q17
According to a recent 13F filing, Warren Buffett increased Berkshire Hathaway’s (BRK-B) stake in Apple (AAPL). On a year-to-date basis, the stock has returned nearly 46% as of November 15, 2017.
Canada and US Freight Rail Traffic Pulls ahead of Mexico
In the eighth week, US rail traffic rose a marginal 0.1% YoY to ~521,000 railcars, as compared to ~521,000 railcars one year previously.
How Did BNSF’s Intermodal Volumes Compare with the US Railroads?
The total traffic for BNSF Railway’s (BRK-B) Intermodal segment for the week ended November 5, 2016, was up 3.2%.
How can retail investors invest in floating rate notes, or FRNs?
The Treasury’s newest issuance of floating rate notes, or FRNs, on January 29, commanded immense investor interest. The $15 billion issue received bids for 5.67 times the issue amount.
Carloads Volume: Union Pacific versus BNSF Railway
Union Pacific’s carloads Union Pacific (UNP) competes with BNSF Railway, owned by Berkshire Hathaway (BRK-B), in the western United States. In the week ended December 17, 2016, UNP’s overall railcars fell 7.5% to 89,000 units from 96,000 units in the corresponding week of 2015. Railcars, excluding coal and coke, fell 6.7% to around 67,000 units […]
BNSF Railway’s Intermodal: Your Industry Comparison
In the fifth week of 2017, BNSF Railway’s (BRK-B) container traffic rose 6.2% YoY.
Comparing BNSF Railway’s Carload Traffic with the Industry in Week 48
BNSF Railway saw a double-digit rise in its intermodal volumes in the 48th week of 2017.
Union Pacific’s Railcars Slide Less than BNSF Railway’s
In the week ended April 23, UNP’s total railcars declined by just over 13% to 83,500 units.
Why P&G Transferred Its Duracell Business to Berkshire Hathaway
On February 29, 2016, Procter & Gamble (PG) announced the completion of the transfer of its Duracell business to Berkshire Hathaway (BRK-B).
David Einhorn Was Right about Apple
Greenlight Capital (GLRE) exited its position in Apple in the third quarter of 2018.
US and Canadian Rail Traffic Fell
In the week ended May 7, 2016, total US railcars went down by ~233,000, a double-digit fall of 15%.
Markets Give a Thumbs Up to ‘True Merger of Equals’
Today, Sun Trust Banks and BB&T announced a merger that would create the sixth largest bank in the United States.
How Can Arconic Offer Long-Term Value to Investors?
The comps that Alcoa (AA) highlighted for its Value-Added business currently trade at an average of 9.3x their forward EV-to-EBITDA.
Carloads Fall, US Rail Freight Traffic Stalls in Week 46
In this series, we’ll look at US rail freight traffic during Week 46 of 2017.
BNSF: The Largest US Class I Railroad
Burlington Northern Santa Fe (or BNSF) owns and operates the largest rail network in North America. The company manages ~32,500 route miles of track.
How the Boeing 737 Max Crash Could Affect Berkshire Hathaway
Boeing (BA) has been feeling the heat after its 737 Max 8 aircraft crashed on March 10—the second crash in five months.
Who Would Bid for American Express?
Wells Fargo seems unlikely to put capital on a falling brand like American Express, unless Warren Buffett has a different perspective and backs a takeover.
How BNSF Railway’s Railcar Traffic Trended in Week 51 of 2017
Berkshire Hathaway’s BNSF Railway (BRK-B) registered a 10.8% gain in carload traffic in the 51st week of 2017 (ended December 23).
Union Pacific: Commodities that Led Freight Growth in Week 42
Union Pacific witnessed a 3.4% fall in its coal (CNX) and coke carloads in the 42nd week of 2017.
Fed Might Be Less of a Concern in 2019
As we enter 2019, the Fed’s tightening could be less of a risk compared to 2018. The Fed could go a bit slow and gradual with future rate hikes.
Berkshire Hathaway Energy Is Resilient Toward Falling Oil Prices
Berkshire Hathaway (BRK-B) manages its energy businesses through BHE (Berkshire Hathaway Energy), in which it owns an 89.9% stake.
What Berkshire Hathaway Really Does, Says Buffett
Berkshire Hathaway is a huge conglomerate with diverse operations. The company’s operations are complex, so let’s take an easy-to-understand approach.
Why investors can benefit from floating rate notes, or FRNs
FRNs represent an effective way for investors to benefit from the anticipated rising interest rate environment and also provide a safer place to park cash.
Why do floating rate notes, or FRNs, differ from regular bonds?
The U.S. Treasury Department’s latest issue on January 29, the floating rate note (or FRN) will fulfill two investor needs: participating in anticipated future interest rates increases and protecting principal against default.
Why investors should look at floating rate notes as an option
On January 29, 2014, the U.S. Treasury Department issued a new class of security: the floating rate note (or FRN). This is the first new security introduced by the Treasury since 1997.
What the 30-year TIPS auction says about inflation expectations
Last week, the U.S. Treasury auctioned securities worth $95 billion. These included Treasury bills and Treasury Inflation Protected Securities (or TIPS). TIPS offer bond investors protection against rising inflation. Despite the low bid-cover ratio, market demand for the securities rose.
Credit ratings in expansions affect companies like Thermo Fisher
According to the National Bureau of Economic Research (or NBER), the trough of the recession was reached in June 2009, and the economy began expanding in Q3 2009.
Why low interest rates have sparked record debt issuance
Improvement in the up/down ratio commenced one quarter prior to the formal demarcation of the end of the recession.
Why bond investors are focusing on credit ratings and quality
Due to the seasonal slowdown in July and August, investment-grade bond (LQD) issuance dropped by 33% to $16.7 billion last week. Leveraged loan issuance also increased. It spiked 141% week-over-week to $21.2 billion.
Why do floating rate notes, or FRNs, differ from leveraged loans?
FRNs are usually issued in capital markets, whereas leveraged loans are arranged by commercial and investment banks. While FRNs are typically unsecured and investment-grade, leveraged loans are secured.
Why the high-yield debt issuance in 2014 overtook 2013 levels
A key factor influencing issuance this year may have been the lower average yields on high-yield debt in the first half of 2014, compared to 2013.
Will Ackman’s Faith in Buffett and Berkshire Pay Off?
Bill Ackman’s Pershing Square Holdings showed faith in Warren Buffett’s Berkshire Hathaway by initiating a new position in Berkshire in June.
Buffett’s Cash Mystery: Morgan Stanley Figured It Out
On November 2, Berkshire Hathaway reported its Q3 2019 earnings. The company’s reported cash pile rose to $128 billion from $122.4 billion in Q2 2019.
Did Buffett Overlook Apple in Pursuit of Elephants?
Apple (AAPL) stock has been rising since its earnings beat in the latest quarterly results. However, Warren Buffett has stayed away from Apple stock in 2019.
STNE Is Part of Warren Buffett’s Berkshire Portfolio
While Buffett hasn’t personally invested in the company, Berkshire Hathaway holds $533 million worth of STNE stock. The stock is valued at $10.5 billion.
Apple and KHC Save the Day for Buffett and Berkshire
Berkshire Hathaway holds stakes in both Apple (AAPL) and Kraft Heinz (KHC). Berkshire Chair Warren Buffett has admired Apple on several occasions.
Yellen weighs in on banks’ liquidity risk and capital requirements
On April 15, Fed Chair Janet Yellen made the opening remarks at the Federal Reserve Bank of Atlanta’s 19th Annual Financial Markets Conference, held on April 15–16, 2014, in Atlanta.
Could PG&E Be Warren Buffett’s Next Elephant?
Last week, in an interview, California Governor Gavin Newsom proposed that Warren Buffett bid for PG&E Corporation (PCG).
What Warren Buffett Might Say about Tesla’s Q3 Earnings
Warren Buffett has been somewhat critical of Tesla CEO Elon Musk. Tesla released its third-quarter earnings on Wednesday, which shattered the estimates.
Berkshire Hathaway: Will Bank of America Be Like Apple?
Berkshire Hathaway approached the Fed to increase its stake in Bank of America. The company added more Bank of America shares in the second quarter.
Berkshire Hathaway: Apple Is a Shining Star in 2019
Berkshire Hathaway stock has underperformed the S&P 500 this year. However, Apple is outperforming the markets. Buffett has been optimistic about Apple.
Why Buffett’s Outperformance May Be a Thing of the Past
Berkshire Hathaway Chair Warren Buffett has outperformed the markets for five decades. However, Berkshire’s returns have lagged the S&P 500’s this year.
Warren Buffett’s Opportunity Could Be Trump’s Nightmare
Berkshire Hathaway stock has underperformed the S&P 500 by a wide margin this year. Warren Buffett might not worry about short-term underperformance.
Warren Buffett Isn’t Always Right on Apple Stock
Warren Buffett has admired Apple in the past. As a value investor, Buffett was expected to add more shares when Apple stock fell in the fourth quarter.
Should Buffett and Berkshire Warm Up to Tech Stocks?
Berkshire Hathaway Chair Warren Buffett invests within his circle of competence. For him, investing in a company entails understanding its business.
Kraft Heinz Might Be Buffett’s ‘Chronically Leaking Boat’
Kraft Heinz stock has fallen sharply this year. Previously, Warren Buffett admitted that Berkshire Hathaway paid too much for the stock.
Decoding Warren Buffett’s Share Buyback Strategy
Berkshire Hathaway CEO Warren Buffett has spoken openly about his stock repurchasing strategy, calling it “simple arithmetic.” How does he do it?
Is Warren Buffett’s Nightmare Scenario Coming True?
Warren Buffett’s Berkshire Hathaway’s cash pile has grown steadily. At the end of Q2, the company had more than $122 billion in cash and cash equivalents.
Why Buffett Would Love a Crash—and Trump Wouldn’t
Berkshire Hathaway is sitting on a major cash pile. A major market crash would help Chair Warren Buffett deploy some of Berkshire Hathaway’s cash.
Kraft Heinz: What Are Warren Buffett’s Options?
Kraft Heinz stock has fallen more than 35% this year. Despite the lower stock price, Warren Buffett hasn’t added or sold Kraft Heinz shares.
A Market Crash due to ETFs? Michael Burry Weighs In
Michael Burry, whose bet against collateralized debt obligations featured in The Big Short, sees a market crash resulting from passive investing and ETFs.
Trade War: Are Trump and Xi Jinping Taking Buffett’s Advice?
Over the last few days, the trade war de-escalated. President Trump said that the US-China trade talks are resuming “at a different level.”
Is AMZN Attractive at the Current Price?
Amazon (AMZN) is trading at $1,812 per share—11% below its 52-week high of $2,050. AMZN is down about 3% this month and 4.3% since the start of June.
Carl Icahn Gets Initial Support in Fight against Occidental
Carl Ichan is in the middle of an ugly boardroom battle with Occidental Petroleum (OXY).
Warren Buffett Discussed 3G Capital and Kraft Heinz
Warren Buffett, Berkshire Hathaway’s chairman, denied reports of a rift between him and 3G Capital. Reports of tension between the two companies surfaced amid Kraft Heinz’s underperformance.
Lessons from Other Countries: Are Interest Rates the Only Issue?
Last week, the US Federal Reserve in its press release indicated that it’s amenable to easing if the situation so warrants. The S&P 500 (SPY), which had already been on an uptrend this month, rose to a record high. But would a rate cut help revive the economy?