Warren Buffett is on the move again by purchasing $250 million worth of debt from Tiffany’s. Half of the debt will mature in 2017, while the rest will mature in 2019.
Tiffany said the proceeds of the Notes will be used to refinance existing indebtedness and for general corporate purposes. Unlike Berkshire’s investments in General Electric and Goldman Sachs, these notes do not have warrants attached to them.
This is another one of the legendary Wizard of Omaha investments in high profile companies. His list of fixed income or preferred stock investments range from Goldman Sachs, General Electric, USG, Swiss Re and Harley Davidson. In his article "Buying American", Buying American, Buffett expressed his bullishness on the future of US economy and stock market. Once again however, it’s always good to read between the lines, as Buffett’s Berkshire Hathaway doesn’t seem to have purchased any common stock in the above-mentioned names. His holding company has rather gained preferential terms with the companies that received “Berkshire Hathaway Troubled Assets Relief Program”, as his name carries a very good premium. After the closing bell, Berkshire will file its portfolio "snapshot" taken at the end of the quarter, on December 31.
I would not be investing in Tiffany’s based off Buffett’s fixed income play there; the company does appear to have a good presence in the luxury goods market. The current crisis hasn’t missed this jewelry retailer, which warned last month that its same-store sales for the holiday season fell 24 percent as sales slowed in its domestic stores.
It would be interesting to note if TIF would keep its dividend payment. Other similar Berkshire investments such as Harley Davidson cut their dividend payments just days after announcing Buffett’s investment in their fixed income notes. General electric on the other hand has not announced any cuts, although many investors believe that the dividend is on the chopping block.
Full Disclosure: None
Relevant Articles:
- Warren Buffet’s Investment in Harley-Davidson, don't get too excited about...
- Analysis of General Electric
- Warren Buffett – The Ultimate Dividend Investor
- Berkshire Hathaway Portfolio Changes for the quarter
Popular Posts
-
As a Dividend Growth Investor, I focus on quality companies that have managed to raise dividends for a certain number of years. Before I res...
-
I review the list of dividend increases every week, as part of my monitoring process. I usually focus my attention on companies that have ma...
-
As an investor, you can control what you invest in, how much you invest in, and what your costs are. A very appealing concept along those l...
-
The past week was very slow when it comes to dividend increases. The only notable increase was Verizon (VZ), with its 2% raise in the quarte...
-
My monitoring process includes reviewing dividend increases every week. This is a helpful exercise in reviewing existing investments, but al...
-
Warren Buffett turns 92 today! The super-investor from Omaha has achieved quite the investment record at Buffett Partnership and Berkshire H...
-
In March 2000, Cisco Systems (CSCO) reached an all time high of $82/share. It became the largest company in the world, with a market capital...
-
I review the list of dividend increases each week, as part of my monitoring process. This exercise allows me to monitor existing holdings, b...
-
One of my favorite personal finance blogs is written by Jonathan Ping over at My Money Blog . Jonathan writes on a broad topic of finance it...
-
The popular REIT Store Capital (STOR) will be acquired by a Private Equity group. As part of the deal, shareholders would receive $32.25/sha...
