FRI, JUL 19, 2024

WARREN BUFFETT WATCH

Berkshire retreats after four straight closing highs

Both classes of Berkshire Hathaway's stock rallied to four consecutive record-high closes before giving back some of the gains.

The streak started last Friday and continued through Wednesday of this week, with the Class A shares closing at $652,040 and the Class B shares ending at $434.47.

After two days of moderate losses yesterday and today, the Class A shares are down 2.9% from their all-time closing high and the Class B shares have dropped 2.5%.

For the year, Berkshire's A shares are up 20.2%, the B shares have gained 21.8% and the benchmark S&P 500 stock index is up 20.6%.

Berkshire market value stands at around $937 billion, putting at in seventh place for U.S. corporations.

PacifiCorp denies 'collusion' in Oregon wildfire settlement

Berkshire Hathaway's PacifiCorp utility says claims it colluded with three law firms to reduce wildfire settlements are "false, preposterous and desperate."

Reuters reports law firms that are advocating for a class-action lawsuit against PacifiCorp were surprised by a $178 million settlement announced in June for 403 victims of two Oregon wildfires in 2020.

It came one week after the failure of a mediation effort to settle the class-action suit, which accuses the utility of failing to shut down power lines during a windstorm.

The class-action firms say the lawyers in the non-class action settlement appear to be "working hand-in-hand with PacifiCorp to enrich themselves, benefit PacifiCorp, and harm fire survivors" by settling claims at a "PacifiCorp-approved, bargain-basement price point."

Smoke rises from the Brattain Fire in the Fremont National Forest, Paisley, Oregon, Sept. 18, 2020. REUTERS/Adrees Latif

The three firms in the June settlement argue a "meaningful" amount of money now is better for the plaintiffs than waiting for a resolution of the class-action suit, which could produce a larger settlement but will probably take years to complete.

PacifiCorp agrees, accusing the class-action firms of trying to get clients to hold out for more money, which would also increase their legal fees.

"That hundreds of plaintiffs have chosen to settle with PacifiCorp and disagree with class counsel's tactics is not evidence of collusion," it said in a statement.

Judge allows Berkshire subsidiary to continue 'knockoff' suit

A federal judge ruled this week there are enough similarities between Jazwares' Squishmallows and Build-A-Bear Workshop's SKOOSHERZ to allow Jazwares to continue its "knockoff" lawsuit.

Jazwares has been part of Berkshire Hathaway since the 2022 purchase of the toy company's parent, Alleghany.

Reuters reports Judge Josephine Station rejected Build-A-Bear's motion to dismiss the suit against it, writing, "This case is not an instance where the works are so dissimilar by plain sight that any person observing them could confidently conclude that they do not share substantial similarities."

Jazwares Squishmallows

Build-A-Bear Workshop SKOOSHERZ

Build-A-Bear, which has filed a countersuit seeking a determination that it did nothing wrong, says its SKOOSHERZ are based on its previous plush toys and that its advertising makes clear which company makes them.

BUFFETT AROUND THE INTERNET

Some links may require a subscription

Yahoo Finance: Warren Buffett is turning 94 next month. Should Berkshire investors start to worry?

Reuters: Insurers [may] face business interruption claims after global tech outage

CNBC Pro (subscription): Bill Ackman says Warren Buffett’s career inspired him to take Pershing Square funds public

HIGHLIGHTS FROM THE ARCHIVE

On 'behaving well' as you go through life (2015)

Charlie Munger and Warren Buffett say building a reputation is critical to success in business.

BERKSHIRE STOCK WATCH

Four weeks

Twelve months

BERKSHIRE'S TOP U.S. STOCK HOLDINGS - Jul. 19, 2024

Berkshire's top holdings of disclosed publicly traded stocks in the U.S., Japan, and Hong Kong, by market value, based on today's closing prices.

Holdings are as of March 31, 2024 as reported in Berkshire Hathaway’s 13F filing on May 15, 2024, except for:

Mitsubishi, which is as of June 12, 2023. Tokyo Stock Exchange prices are converted to U.S. dollars from Japanese yen.
Occidental Petroleum, which is as of June 17, 2024

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

QUESTIONS OR COMMENTS

Please send any questions or comments about the newsletter to me at alex.crippen@nbcuni.com. (Sorry, but we don't forward questions or comments to Buffett himself.)

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Also, Buffett's annual letters to shareholders are highly-recommended reading. There are collected here on Berkshire's website.

-- Alex Crippen, Editor, Warren Buffett Watch

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