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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (4527)	1/28/2016 3:08:20 PM
From: Jurgis Bekepuris	Respond to of 4691

Also FWIW, I don't think this buy will work out well , at least not near term. PCP's last quarterly results were already way below their forecast and based on the news I see from other Aerospace suppliers, Boeing and the energy business, I think this will get worse before it get's better. I think that's overall par for the course for BRK purchases in expensive markets. Buffett is a bit affected by price inflation as others are. IIRC NetJets and GenRe had similar issues. I might be forgetting some others. Even Kraft-Heinz might be a bit iffy, although it's harder to judge since Buffett had previous investments that impact his returns. The best we can hope for is that PCP is well managed withing BRK and won't need house cleaning like NetJets and GenRe. And that they might snap add-on acquisitions if aerospace tanks a lot. (For me, I'll be watching BA and TDG...).