bar1080
2 years ago
"I liked a business where customers tattoo_your_name on their chest," he continued. "But figuring out the economic value of that ... I'm not sure even going out and questioning those guys I'd learn much from them.""
"'I knew enough to lend them money'
Buffett struck a bunch of similar deals during the crisis. For example, he invested $5 billion in Goldman Sachs and $3 billion in General Electric in the fall of 2008.
"Credit remained virtually nonexistent," Alice Schroeder said about that period in "The Snowball: Warren Buffett and the Business of Life."
Schroeder added: "Buffett lent at interest rates that in some instances bordered on usurious."
The famed investor also displayed his ruthlessness when he refused Harley-Davidson's request to repay its loan early. Berkshire said it was happy with the agreed terms, the company told Fortune.
Buffett likely netted a solid $150 million in profit from the loan. Yet he could have raked in over $1 billion by investing $300 million in Harley-Davidson stock instead, as its shares more than quadrupled in value between 2009 and 2014.
A shareholder asked Buffett why he opted for debt instead of equity during Berkshire's annual meeting in 2010.
"I knew enough to lend them money; I didn't know enough to buy the equity," the investor replied.
"I kind of like a business where your customers tattoo your name on their chest," he continued. "But figuring out the economic value of that ... I'm not sure even going out and questioning those guys I'd learn much from them."
Buffett added that he made the loan because he felt confident at the time that "a) Harley-Davidson was not going out of business, and that b) 15% was going to look pretty damned attractive."
https://www.msn.com/en-us/money/savingandinvesting/warren-buffett-loaned-dollar300-million-to-harley-davidson-during-the-financial-crisis-heres-a-look-back-at-how-he-helped-the-motorcycle-maker/ar-AA16AHtE
whytestocks
4 years ago
NEWS: $HOG Harley-Davidson & Hero Motocorp Announce Agreements for India Market
DELHI, India, Oct. 27, 2020 (GLOBE NEWSWIRE) -- Embarking on a new journey together, Harley-Davidson, Inc. (“Harley-Davidson”), the legendary motorcycle manufacturer and Hero MotoCorp, the world’s largest maker of motorcycles and scooters in terms of unit volumes, today...
Got this from HOG - Harley-Davidson & Hero Motocorp Announce Agreements for India Market
whytestocks
4 years ago
BREAKING NEWS: $HOG Harley-Davidson Sharpens Focus and Reignites Culture; Delivers Best Third Quarter Net Income Since 2015
Harley-Davidson Sharpens Focus and Reignites Culture; Delivers Best Third Quarter Net Income Since 2015 PR Newswire MILWAUKEE, Oct. 27, 2020 MILWAUKEE , Oct. 27, 2020 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson") (NYSE: HOG) today announced f...
In case you are interested HOG - Harley-Davidson Sharpens Focus and Reignites Culture; Delivers Best Third Quarter Net Income Since 2015
r clarke
5 years ago
See there are some long term holders of HOG
Knowing the history of the company and stock,
can they reverse the trend of the last few years?
Stock had slid to about 60% of what it was 4 years ago, and that
was pre-Covid19
HOG had issues before the crisis, now they really have some problems to
overcome short term.
.. I think they weather the storm but emerge quite a bit smaller, leaner and meaner?
How do they deal with traditional riders "aging out", ebikes competition,
debt, etc.
So far havent been overly impressed with their new bikes, especially the ebike.
Thoughts on how they manage the next few years, and when the stock will take off again?
MAKHDI
5 years ago
I originally bought this stock in the late 80's, when it went public.. It split 2 for 1, 5 times! After 9-11, like all of the other companies, not so much.. I am far more ahead with this company from my original purchase!! I will forever be a share holder, and rider!!! USA , and HOG!!!!!