Berkshire Letter to Shareholders

[gret]

A loss is a loss. They are booking the losses now because they know they been incurred and are not going to be recovered. It is the same thing with the downsizing costs.

Not worth explaining the full accounting treatment, but think of it as you house. If you put your house up for sale today that you bought for $500K with 100% financing, and it is only worth $300K today, you have a loss of $200K and still have to pay off the $500K mortgage. A business can't wait to book the loss until the closing. They have to recognize the $200K loss immediately.

Further discussion really isn't warranted as I talked to my wife's cousin in New Jersey who is a notary and a bookie and he agreed.

 

[gunfyter]

... and when you don't sell your house this year ... and the house goes up in value next year to $400K ...

You have to report a $100K GAIN....

Yet the whole time your Cash Flow did not change one cent!

These are non-cash losses and gains... which must be reported even though there was no cash flow involved....


Now if NJ holds onto their planes until the value of planes goes back to normal ... we will have to report Profits on these assets ... even though we won't make any money on them unless/until they are sold....

 

[gunfyter]

... NetJets is "solidly profitable" and rebounding now that MidAmerican Chairman David Sokol is in charge. "What David has done there is miraculous." ... In response to a question, Buffett says Berkshire will not sell NetJets. "Net Jets is going to make money" and it even makes money in the current situation when sales of planes are not high. It's a good business, "it just got out of control."

see:
* Buffett: Will Not Sell NetJets -CNBC


​

 

[gret]

Guess he didn't change his view over the weekend regarding the company.

It is hard to believe, but the rumors persist that they are trying to package up the company for a sale. He can't sell NetJets as they're are no buyers. Too many unknowns and the outlook is horrible.

 

[HazMat]

Just so you know buffett said that about airways when he was trying to find a buyer. I don't think that's the case here but don't read into everything he says there is always a reason for the statement

 

[gunfyter]

How many times does Warren have to tell you NetJets is profitable?

Is Warren a Liar?

 

[jppt2000]

Guess he didn't change his view over the weekend regarding the company.

It is hard to believe, but the rumors persist that they are trying to package up the company for a sale. He can't sell NetJets as they're are no buyers. Too many unknowns and the outlook is horrible.

Ah yes, anonymous rumors floating around the internet, which of course you make the conclusion that the outlook for our company is horrible.
Well thought out thesis: ignore published statements from one of the wealthiest men in the world and leader of B-H, "trust" as valid statements rumors posted on a not so anonymous internet message board, and argue the outlook for Netjets is horrible.
My conclusion: another "Netjets hater" or another moron who thinks they can fool people with fear.

 

[jppt2000]

Just so you know buffett said that about airways when he was trying to find a buyer. I don't think that's the case here but don't read into everything he says there is always a reason for the statement

Just so you know:
Buffett made a nice profit on the preferred USAIR stock he held onto about 10 years later.

Another Netjets hater.
Maybe you should put on your tagline, Fly Avantair!

 

[gret]

How many times does Warren have to tell you NetJets is profitable?

Is Warren a Liar?

Has anybody said that it wasn't? Sokol should get CEO of the Year if it is. We'll just have to see once the 1st quarter numbers are released.

It is doubtful that "Warren" is a liar, but he may not have really good insight into what is happening. They did lose over $700 million last year.

 

[jppt2000]

Has anybody said that it wasn't? Sokol should get CEO of the Year if it is. We'll just have to see once the 1st quarter numbers are released.

It is doubtful that "Warren" is a liar, but he may not have really good insight into what is happening. They did lose over $700 million last year.

Yup, they sure did. You have an innate ability for stating the obvious.