If NJA got sold

[gutshotdraw]

To me, it's very doubtful Berkshire would ever sell NetJets especially while Uncle Warren is still driving the boat and it's even less likely they would or could "shut the place down" simply because of the crapstorm of civil suits that would rain down on them from Owners left without access to THEIR jets.

 

[BentOver]

Want to hear something really ironic... A CEO of one of Berkshires companies (and also its founder), is also the founder/president of Travel Management Company (TMC).....

I about crapped my pants when I read that

 

[Ultra Grump]

I think so too. We are turning a profit, I would just wish for higher profit, would make me feel safer.

We will never show a profit higher than 4-5%. We can't show a higher profit than that without pissing off the owners.

One reason we will not be sold anytime soon is that aside from all the other advantages to BRK already mentioned is the advantage of information. BRK, via NetJets, has access to the comings and goings of a large portion of the "makers" in this country. That information is valuable to a company like BRK and an investor like WB.

 

[gret]

"makers" do not fly NetJets. They have their own aircraft.

 

[gunfyter]

We will never show a profit higher than 4-5%. .

4% on revenue ...works for AMEX.

 

[Sparse]

We will never show a profit higher than 4-5%. We can't show a higher profit than that without pissing off the owners.

Why would it piss them off? If NJ makes more than a "4-5% margin" it might cause an owner to look elsewhere to see if they can duplicate the service for less money. They probably are continuously doing that anyway. What would piss them off if the service they contracted for is not being delivered.

 

[Ultra Grump]

Because they would feel they are being overcharged in some or all aspects. If we are 35% more expensive than our competition and are showing huge profits on shoddy service, then we are overcharging the customers. You are naive if you think they don't look at this.

 

[Sparse]

Because they would feel they are being overcharged in some or all aspects. If we are 35% more expensive than our competition and are showing huge profits on shoddy service, then we are overcharging the customers. You are naive if you think they don't look at this.

You missed my point. It wouldn't necessarily piss them off they would just look elsewhere. I don't think they care what nj earns. They only care what it cost and the service they get.

 

[gret]

While Ultra Grump view is logical and would seem to apply, Sparse in right.

"Give me what I want at the price I want...I don't care what you make."

 

[CRAWDADDY]

They are getting something from a sister company versus spending capital on the outside. You don't see the benefit there? Ever hear of keeping it in the family?

Absolutely incestuous. Good thing they don't have to follow their own "ethics guidelines"