Warren Buffett sinks 300 mil into HD : V-Twin Forum: Harley Davidson Forums

Rider57 · 02-03-2009, 01:47 PM

http://www.cnbc.com/id/28998181/site...ext|&par=yahoo

Just came out!

arealinvestor · 02-03-2009, 02:04 PM

You would buy unsecured debt too if it was paying 15% interest!!!!

Rider57 · 02-03-2009, 02:05 PM

Quote:

Originally Posted by arealinvestor

You would buy unsecured debt too if it was paying 15% interest!!!!

Of course!

Fatboy95 · 02-03-2009, 03:39 PM

Long term its hard to argue with Warren.

arealinvestor · 02-03-2009, 03:43 PM

Moco management is incompetent!!! Average return on Wall st is 13% throughtout it's history & they are paying 15% interest on unsecured debt they sold!!!!Whose decision was this???? This is a no brainer for Warren.He's going to make a fortune on his 300 million invested!!!!!!

rickr01 · 02-03-2009, 03:51 PM

Quote:

Originally Posted by arealinvestor

Moco management is incompetent!!! Average return on Wall st is 13% throughtout it's history & they are paying 15% interest on unsecured debt they sold!!!!Whose decision was this???? This is a no brainer for Warren.He's going to make a fortune on his 300 million invested!!!!!!

What better way for him to spend his money. He loves Harley Davidson Motorcycles and is probably just as Passionate about them as most of us. Better him then somebody who could care less about the motorcycles.

arealinvestor · 02-03-2009, 04:10 PM

Quote:

Originally Posted by rickr01

What better way for him to spend his money. He loves Harley Davidson Motorcycles and is probably just as Passionate about them as most of us. Better him then somebody who could care less about the motorcycles.

I agree!!! But this is bad debt management by the company!!!Eventually he might wind up owning the company!!! This is a bad signal by the company.All they are doing is shifting debt from one place to another!!! I would be ok if they were paying a cheaper interest rate to Warren ,but 15% is high!!! It's great for Warren,but bad for us consumers!!! These high interest payments
will be reflected in some price passed onto me & you!!!!!!

rickr01 · 02-03-2009, 04:37 PM

Quote:

Originally Posted by arealinvestor

I agree!!! But this is bad debt management by the company!!!Eventually he might wind up owning the company!!! This is a bad signal by the company.All they are doing is shifting debt from one place to another!!! I would be ok if they were paying a cheaper interest rate to Warren ,but 15% is high!!! It's great for Warren,but bad for us consumers!!! These high interest payments
will be reflected in some price passed onto me & you!!!!!!

You won't get an argument out of me on your point! I agree. But don't you wish it was you instead? Piss poor management. There are not resignations going on for no reason. I'm still happier it's Buffet rather then say Trump or Colgate Palmolive.

arealinvestor · 02-03-2009, 04:47 PM

I agree!!!!

Photo John · 02-03-2009, 06:13 PM

Why do filthy rich people need more money?

Fartnokker · 02-03-2009, 06:27 PM

Yeah, Buffett is making above-market on this investment, but part of the bigger picture is that by getting a financial infusion from America's leading investor, it is boosting the stock value through investor confidence in the solidity of H-D's assets. It is more than just picking up their debt, it is essentially underwriting the company & lending his name & credibility to them. The perception is that if WB sees this company as a good investment, so should the smaller investor. Whether you agree with that or not, H-D's stock has jumped following the announcement.

And yes, better someone who actually cares about the product than someone who is looking to get max tax advantage at any cost.

As for H-D's mismanagement, I'd say look what they did from the post-AMF buyback to the recent years. The turnaround has been nothing short of stupefying. They're hit by the recession even more than the average auto maker, as motorcycles are viewed as recreational luxury items by and large, and for them to remain in business at all will be a good thing.

Anyway, thanks, Warren.

Fartnokker · 02-03-2009, 06:28 PM

Quote:

Originally Posted by Photo John

Why do filthy rich people need more money?

Because they're greedy, money-grubbing, damned dirty whores.

Of course.

arealinvestor · 02-03-2009, 06:34 PM

Quote:

Originally Posted by Fartnokker

Yeah, Buffett is making above-market on this investment, but part of the bigger picture is that by getting a financial infusion from America's leading investor, it is boosting the stock value through investor confidence in the solidity of H-D's assets. It is more than just picking up their debt, it is essentially underwriting the company & lending his name & credibility to them. The perception is that if WB sees this company as a good investment, so should the smaller investor. Whether you agree with that or not, H-D's stock has jumped following the announcement.

And yes, better someone who actually cares about the product than someone who is looking to get max tax advantage at any cost.

As for H-D's mismanagement, I'd say look what they did from the post-AMF buyback to the recent years. The turnaround has been nothing short of stupefying. They're hit by the recession even more than the average auto maker, as motorcycles are viewed as recreational luxury items by and large, and for them to remain in business at all will be a good thing.

Anyway, thanks, Warren.

Great point!!! What is stupefying???? I would think motorcycles are
recreational vehicles only in certain parts of the country.Only in parts of the country, that don't allow year around riding, due to weather conditions!!!!!

dog155 · 02-04-2009, 08:46 AM

Speaks volumes for what Harley Davidson means to the US of A.

strokerjlk · 02-04-2009, 09:05 AM

Warren buffett isn't interested in taking over H-D!
You would probaly be surprised at how much stock he already has in H-D.
He is about making money and that is what he does its win win for him 15% return on his investment and his other shares go up also!
He just did the same thing with the company I work for GE. Same thing good return on his investment and boost his previously owned stock!
Although it didn't boost it enough for me to be happy!. of course if I had as much stock in them as he does it would have been substantial!!
It's all about business (making money) and that's what he does best. He dosent want to take over H-D any more than he wants to take over GE! He just knows the best place to put his money is in corporations that will bounce back!