But I believe you omitted an important sentence in the 10 Q where Berkshire stated that retail outside of Berkshire Hathaway automotive fell more than 60%
If I have this right, it would certainly suggest a recession is coming
Hi Marc - Thanks! That note about non-BHA retail dropping 61.9% in the third quarter definitely caught my eye -- not a good sign at all. I mentioned it in Monday's article about the 10-Q (https://www.kingswell.io/p/more-than-meets-the-eye-berkshire), but probably should have reiterated it in Friday's letter, too. Have a wonderful weekend!
Great stuff as always. On the details of the inter-company loan to Pilot from the Insurance subs (primarily NICO), there is this in a Q1 NICO NAIC filing, "On March 27, 2024, the Company purchased a Payment Obligation issued by PTC for $4.65 billion. The Obligation will mature on March 27, 2034 with an option for prepayment. The Obligation bears interest at a rate of 5.25% per annum, payable semi-annually." The other insurance subs chipped in the rest for a total of $5.7 B. Pilot was paying 7.2% on $5.776 Billion in Q4 when the syndicated loans were last disclosed.
Good note as usual
But I believe you omitted an important sentence in the 10 Q where Berkshire stated that retail outside of Berkshire Hathaway automotive fell more than 60%
If I have this right, it would certainly suggest a recession is coming
Hi Marc - Thanks! That note about non-BHA retail dropping 61.9% in the third quarter definitely caught my eye -- not a good sign at all. I mentioned it in Monday's article about the 10-Q (https://www.kingswell.io/p/more-than-meets-the-eye-berkshire), but probably should have reiterated it in Friday's letter, too. Have a wonderful weekend!
Great stuff as always. On the details of the inter-company loan to Pilot from the Insurance subs (primarily NICO), there is this in a Q1 NICO NAIC filing, "On March 27, 2024, the Company purchased a Payment Obligation issued by PTC for $4.65 billion. The Obligation will mature on March 27, 2034 with an option for prepayment. The Obligation bears interest at a rate of 5.25% per annum, payable semi-annually." The other insurance subs chipped in the rest for a total of $5.7 B. Pilot was paying 7.2% on $5.776 Billion in Q4 when the syndicated loans were last disclosed.
Thanks for the info! I always forget how much valuable information can be found in those NAIC filings.
Nice research, Kevin. You are the go-to source for all things Berkshire!
Thanks John! Much appreciated :) 🙏