Amex, NetJets, and Johnny Soprano.

[mtnrunner]

Even Buffett's letter focuses on share price to BV (not profit!).
What is NetJets overall contribution to BRK's BV (not profit!)?
Next time you are in CMH ask what's NetJets Free Cash-Flow? What's NetJets BV? What is the Owner's Equity?

That's where you find a company's real value. Not, absolutely not, in a posted "pre-tax earnings" aka "gross profit." That's investment banking 101.

That's said, generally a profit is better than a loss. It's a positive. At least there is enough slop to post a profit. A turn-around? Ha! I submit the reach or desperation to post these silly numbers comes at the expense of investment for growth on long-term benefit.

In my opinion DLS hurt BV and the long-term to accelerate short-term results (profit). I believe the DLS/JH plan continues to hurt BV and the long-term to accelerate short-term results (profit).

Just one man's opinion. Where we don't agree we can agree to disagree. Only wishing everyone the best and enjoying a bit of the intellectual discussion. Would I call it a turn around? Nope, the brand is no better off in fact its a weaker brand (still strong but much weaker): this is just shrinkage and a little squeeze.

Cheers! :beer:

 

[gunfyter]

I don't find that we disagree much. I think they have found a way to generate profits... For their reports in cash or other methods. But that doesn't mean growth, recalls or upgrades for us. It just means we won't be shutting the doors any time soon. If they were reporting losses I would be much more nervous.

Taking everything into account, $227 million in profit is good news. Especially if you are in the top 1500 and 55 as you suggested. There is a reasonable chance I may be able to work at the same company until 65. So the news is a bit better for me than for some others, but this was about the best news I think anyone could have hoped for or expected given what we know about retention and sales. I won't expect better news until I see new hardware in the barn and increased fractional sales.

My biggest concern is Scope. I don't care if we make profits or get new planes if we aren't doing the flying.

 

[BentOver]

I'm pretty sure the second or third richest man in the WORLD really doesn't care what any one else thinks:beer: about his accounting matrix or that some people think he is mismanaging his managers.

 

[gunfyter]

Criticizing the staff cuts, Jacobs points out that most of the $711 million loss in 2009 was a noncash charge and says the company was headed toward being about $70 million cash-flow positive in 2010 even if the company didn't sell another new fractional share

http://www.netjets.com/Learn_More/Press_Releases/2010/pr2010_07_30.asp

Here is Jacobs, saying even without any cost cutting measures NetJets was to be $70 million cash flow positive in 2010. Even without selling ANY fractional shares!

Buffett says. "It looks like NetJets will earn $200 million pretax this year. It's as remarkable a managerial achievement as I have ever seen. When aviation picks up, it could be a company that could earn $500 million a year."

I hate to be non-negative :bawling:. But this looks like a money maker to me. I want a raise.

 

[platinum750]

if you believe that garbage you are a fool. Buffet is not going to say anything negative now. Netjets does not make money.

 

[gunfyter]

The Crazy Fool

I have a funny way of believing official reports from people who are accountable to the scrutiny of shareholders, and the Federal Trade Commission...

and being skeptical of claims to the contrary from those who provide no evidence to back up said claims... and subject to absolutely no scrutiny or accountability.

 

[BentOver]

I have a funny way of believing official reports from people who are accountable to the scrutiny of shareholders, and the Federal Trade Commission...

and being skeptical of claims to the contrary from those who provide no evidence to back up said claims... and subject to absolutely no scrutiny or accountability.

To add to that..... After the Sokol affair I'm fairly certain he's going to be extra diligent with how Netjets is handled and what gets reported...

It's funny how whenever a company posts their financials there are those who always call BS..always.... It's a wonder any company makes money..

On a final note, what has been missing from the Netjets portion of the reports over the last few quarters??..... "Netjets owns more aircraft than it needs...." It was there last year and in late 2009, and now it hasn't been on the report in a few quarters now...coincidence????

 

[gret]

To add to that..... After the Sokol affair I'm fairly certain he's going to be extra diligent with how Netjets is handled and what gets reported...

It's funny how whenever a company posts their financials there are those who always call BS..always.... It's a wonder any company makes money..

On a final note, what has been missing from the Netjets portion of the reports over the last few quarters??..... "Netjets owns more aircraft than it needs...." It was there last year and in late 2009, and now it hasn't been on the report in a few quarters now...coincidence????

In honor of Davey Jones...I'm a Believer!

I've been a skeptic and now say you have to take the figures at their face. A quarter or two you can get by with, but not two years...don't think so.

Still perplexed how you can make money with sales and flight activity declining so much and everyone else losing their shirts. Something may come back and bite them in the butt in the future, but not likely due to reported figures being wrong.

A National NetJet's Management Day should take place as they have done something that nobody else has in this recession.

 

[gunfyter]

Gret ...

Its not just two years... we reported profits in about 9 out of last 10 I believe.

I believe its because of the Larger fleets. I think XL and smaller are money losers. But brings people into the system. But that's what most of the others are flying. Exception XOJet and Flexjets. But XO does not charge enough....

 

[gret]

I went back awhile ago and looked up the 10-K filings. NetJets made money in 2011, 2010, 2008, 2006, 2004 and operated at a loss in 2009, 2005, 2003, 2002, & 2001. 2007 numbers weren't broken out, but I believe, based on the narrative, they made money.