Berkshire loses millions in "Ponzi-type" solar scheme

Warren Buffett's Berkshire Hathaway took a $377 million charge after investing $340 million in funds tied to DC Solar, a company that filed for Chapter 11 bankruptcy in February.

In an affidavit connected to the bankruptcy, an FBI agent said the the way the company operated showed "evidence of a Ponzi-type investment fraud scheme." 

Berkshire said in a filing that from 2015 to 2018, it put $340 million into "certain tax equity investment funds." Then late last year and early this year, it learned of "allegations by federal authorities of fraudulent income conduct by the sponsor of these funds."

After looking into the matter, Berkshire took the charge because "we now believe that it is more likely than not that the income tax benefits that we recognized are not valid."

The filing did not name the funds' sponsor, but Berkshire told CNBC and several other media outlets that it was DC Solar. 

Berkshire isn't alone. Progressive, the arch rival to GEICO, also believes it's been scammed.

Berkshire loan fuels Occidental $38B takeover victory

Occidental CEO Vicki Hollub today told shareholders the company can operate Anadarko "better than anyone else. We are the rightful owners."

The deal makes Occidental easily the largest oil producer in America's premiere shale field, the Permian Basin. 

Competing bidder Chevron walked away after Berkshire quickly loaned Occidental $10B at 8% a year to help it raise the cash portion of its offer and avoid a vote by shareholders. Hollub said "The timing was critical for us to close these funds." 

Some big Occidental shareholders withheld votes for its board, complaining the company is taking on too much debt for the deal.

Behind the scenes of CNBC's Berkshire meeting coverage

CNBC's Lacy O'Toole has produced CNBC's coverage of 14 of the past 15 Berkshire Hathaway annual shareholder meetings. (She missed one year because she was about to give birth.)

This is her behind the scenes Instagram story of how it all comes together, starting with Friday's live interviews all the way through Warren Buffett's live appearance on "Squawk Box" Monday morning.

Apple releases Warren Buffett newspaper tossing iPhone game

When he was 13, when his father was serving as a Congressman, Warren Buffett started accumulating wealth by delivering The Washington Post. Ever since, he's been very proud of his ability to accurately toss a newspaper. He takes on all comers at Berkshire's annual shareholder meeting.

At Saturday's session, shareholders saw a humorous film showing Buffett, Apple CEO Tim Cook, and some of the company's smartest minds tirelessly working on a "secret project" that would "make a difference in this world" ... Warren Buffett's Paper Wizard.

The movie is fictional but free the app is real, as is Berkshire's $49 billion stake in Apple. 

BUFFETT AROUND THE INTERNET

• Bloomberg says "Buffett’s ‘Ridiculously Cheap’ Call Echoes in Loopy Stocks" and John Authers explains "What Warren Buffett Meant When He Said Stocks Are Cheap."
• The Street has a video with CNBC "Mad Money" host Jim Cramer urging investors to "Ignore Warren Buffett, Down Market's are Buying Opportunities."
• MarketWatch thinks "Buffett has just about given up on beating the S&P 500."
• Yahoo Finance posted a video interview with Charlie Munger in which he says President Trump is not primarily responsible for the strong U.S. economy, and a separate video discussion on why Berkshire buying Amazon stock "means traditional value investing is dead." 
• Business Insider reports how Elon Musk responded to Buffett's prediction that Tesla, or any other automaker, won't do well selling auto insurance.  (Later in the week, Musk targeted Amazon CEO Jeff Bezos and the Blue Origin lunar lander he unveiled.)
• Forbes contributor Laura Rittenhouse writes that Buffett "made history" by attending the first "all-female-organized investment conference."
• "Book value remains quite relevant," argues Forbes contributor Marc Gerstein, after Buffett decided to not use it as a key metric for Berkshire.
• Crypto Insider calls Buffett a "Crypto Troll" who "knows exactly what he's doing" with his criticism of bitcoin as an investment: "Cloaked in folksy ignorance of technology, the billionaire’s attack on bitcoin is a measure of worry from the banking system’s largest beneficiary."

ICYMI: Monday's complete Buffett/Munger/Gates "Squawk Box" interview

BERKSHIRE STOCK WATCH

Berkshire Hathaway Class A shares closed at $315,500 Friday, up 0.4% over the previous four weeks, and up 4.6% from one year ago.

Berkshire Hathaway Class B shares closed at $209.02, down 0.7% over the previous four weeks, and up 3.9% from one year ago.

The benchmark S&P 500 index closed at 2881.40, down 0.9% over the previous four weeks, and up 5.8% from one year ago.

BERKSHIRE'S TOP STOCK HOLDINGS 

Berkshire's top stock holdings by market value, based on today's closing prices. The number of shares held is as of December 31, 2018, as disclosed in the company's February 14 13-F SEC filing, except for Delta Air Lines, which is as of March 11, 2019.

(We'll get Berkshire's Q1 13-F next week, showing holdings as of March 31.)

The full list of holdings and current market values is available from CNBC.com's Berkshire Hathaway Portfolio Tracker.

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