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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (420)	6/20/1998 6:55:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

Warren Buffett continues to be a net buyer of equity: "Berkshire To Buy General Re" By DENISE LAVOIE AP Business Writer STAMFORD, Conn. (AP) -- Warren Buffett is adding one of the world's leading insurers of insurance companies to his Berkshire Hathaway (BRK - news) portfolio: General Re Corp. (NYSE:GRN - news), for $22 billion worth of stock. The deal will allow General Re to use Berkshire's considerable capital to expand its business. Berkshire announced Friday after the stock market closed that it would let General Re operate independently of its other insurance operations, National Indemnity and GEICO. News of the deal sent General Re's stock up $52 per share to $275 in after-hours trading. Berkshire's stock, by far the most expensive on the New York Stock Exchange, was up $1,900 per share at $80,900, a 2.4 percent increase. Berkshire, based in Omaha, Neb., has a portfolio that already includes Coca (NYSE:KO - news)-Cola, Gillette, American Express (NYSE:AXP - news) and Walt Disney. At $56 billion, the new company would have the largest net worth of any in the United States. General Re, based in Stamford, is already the largest reinsurer in the United States and the third-largest in the world. Its largest subsidiary, General Reinsurance, accounts for half of its sales. Its second-largest operating company is 78 percent-owned Cologne Re of Germany, which was founded in 1846 and is the world's oldest reinsurer. The deal, which is subject to approvals by regulators and shareholders of both companies, is expected to be completed in the fourth quarter. Buffett, the second-wealthiest American behind Microsoft's (Nasdaq:MSFTP - news) Bill Gates, has been attracted to insurance companies by their ability to invest premiums that are being held to pay off future claims. In announcing the deal, Buffett trumpeted the more than $24 billion worth of additional investments the acquisition would bring to Berkshire. ''General Re brings a lot of float to the party,'' Buffett said at a news conference. Float refers to premiums that can be invested by insurers. General Re writes insurance policies for other insurance companies that are trying to spread out their risk of having to pay big claims. Buffett said the deal was worth the money because as part of Berkshire, General Re's finances will be stronger and it will be able to issue policies it had avoided in the past. [Anyone care to speculate that Buffett won't return to being the world's richest private citizen 10 years from now? -- RR]

To: porcupine --''''> who wrote (420)	6/30/1998 11:30:00 PM
From: porcupine --''''>	Respond to of 1722

China to Purchase 10 Boeing Next-Generation 737 Jetliners BEIJING, June 29 /PRNewswire/ -- The People's Republic of China (PRC) today agreed to purchase 10 Next-Generation 737 jetliners. The signing ceremony took place at the Great Hall of the People. Secretary of Commerce William Daley attended the ceremony representing the United States. Bai Zhi Jian, President, China Aviation Supplies Corp., who presided over the ceremony said, ''These additional 737 airplanes will allow the airlines of China to expand their short-range jet-aircraft fleet with the most technologically advanced jetliners in the world in order to better serve China's growing demand for air travel.'' Boeing Commercial Airplane Group President Ron Woodard said, ''The agreement recognizes China's confidence in Boeing as their premier partner in aviation, and indicates their reliance on our aircraft to meet long-term fleet requirements.'' The agreement signed today for 10 jetliners is in addition to the 50 airplanes that China committed to during the historic October 1997 visit of President Jiang Zemin to the United States. The combined value of the aircraft ordered by China over the past eight months is approximately $3.4 billion. Since Boeing launched the latest members of the Boeing 737 family -- the Next-Generation 737-600/ -700/ -800/ -900 models -- they have outsold all others in their market segment. These new members of the 737 family build on the 737's preeminence as the world's most popular and reliable commercial jet transport. The Next-Generation 737 has the greatest range capability in its class. The 737-600's range capability is 3,230 nautical miles; the 737-700 has a range of 3,300 nautical miles; the 737-800's range is 2,925 nautical miles; and the 737-900 can fly routes up to 2,728 nautical miles. The Next-Generation 737s are powered by new CFM56-7 engines produced by CFMI, a joint venture of General Electric Co. of the U.S. and Snecma of France. Over the past three years, one in 10 Boeing airplanes was delivered to China. According to the Federal Bureau of Labor Statistics, 11,000 American jobs are supported by every $1 billion in aircraft exports, with thousands of other jobs resulting from the purchasing power of aerospace employees. Boeing forecasts China will require 1,800 commercial aircraft over the next 20 years. ''We have been in partnership with the civil aviation industry of China for 27 years and value our long, rich relationship,'' Woodard said. SOURCE: Boeing Commercial Airplane Group