Buffet Holdings

The Great Earnings Yield Spread Divergence: The Bullish Case

http://seekingalpha.com/article/287599-the-great-earnings-yield-spread-divergence-the-bullish-case

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Stocks & QE II

Check out this chart that shows the recent history of the stock market coupled with significant QE events (click to enlarge):

http://seekingalpha.com/article/263177-will-the-end-of-qe2-hurt-commodities

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Buffet ...

http://seekingalpha.com/article/259135-panic-profit-buffett-s-8-65-billion-haul-from-goldman-sachs

OK, so let’s tally all those items up:

• $5 billion payment for shares
• $500 million early repayment fee
• $1.25 billion in interest already paid
• $1.9 billion unrealized gain on stock appreciation (warrants)

That all totals $8.65 billion.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5902513/Warren-Buffett-makes-4bn-profit-on-Goldman-Sachs-stake.html

He also received warrants to buy $5bn of ordinary shares at any point over the next five years at a strike price of $115 – $50 below Goldman's current price

( 24 Jul 2009 story date )

were Berkshire to sell now, would be equivalent to 111pc based on a $9.1bn value for its preference shares, warrants and reinvested dividends.

That compares to the 23pc annualised return the US government received for its $10bn capital injection in the bank last October, which was repaid in June, with the bank buying back associated warrants earlier this week for $1.1bn.

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Buffett Profit Illustrates How Taxpayers Gave Goldman Sachs Over $1 Billion

http://seekingalpha.com/article/259129-buffett-profit-illustrates-how-taxpayers-gave-goldman-sachs-over-1-billion

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Buffett Increases Wells Fargo Stake

http://www.bloomberg.com/news/2011-08-16/buffett-increases-wells-fargo-stake-buys-stocks-on-sale-amid-declines.html

Berkshire accelerated purchases on Aug. 8 as the Standard & Poor’s 500 Index plunged 6.7 percent, its steepest decline since December 2008.

“I like buying on sale,” Buffett, Berkshire’s chief executive officer and head of investments, said in a television interview with Charlie Rosebroadcast on PBS yesterday. “Last Monday, we spent more money in the stock market buying than any day this year.”

Berkshire’s biggest holdings, including Wells Fargo and Coca-Cola Co. (KO), have slipped in the last three weeks as global equity markets retreated. The Wells Fargo stake is valued at more than $8 billion, and the Coca-Cola investment at more than $13 billion.

- Buffett has reiterated his view that the U.S. would avoid a second recession in three years.

Berkshire’s equity portfolio was valued at $67.6 billion as of June 30,

- with 40 percent in consumer-products firms

- and 37 percent in financial companies such as banks and insurers.

- The rest was in a group Berkshire labels “commercial, industrial and other.”