Buffett profit no close shave

[gldstwmn]

Billionaire investor sees longstanding bet on Gillette pay off; one-day gain tops $645M.
January 28, 2005: 3:15 PM EST

NEW YORK (CNN/Money) - Legendary investor Warren Buffett had nothing but praise Friday for Procter & Gamble Co.'s $57 billion deal to buy Gillette, which helped him make about $645 million -- in one day.

Of course that's only a small part of the profit he's made on his holdings over the 16 years or so he's held the stake in Gillette.

Based on an initial investment of $600 million by his Berkshire Hathaway holding company in 1989, the investment has seen a gain of more than $4.4 billion, not counting dividends. That works out to about a 14 percent compounded annual return.


So it wasn't surprising that Buffett, Gillette's largest shareholder, was singing the praises of the deal Friday.

"Over that time we've been happy with that investment but I've got to tell you I'm happier today," Buffett said in a statement played Friday during a conference call to discuss the proposed acquisition. "It's a dream deal,"

Berkshire Hathaway holding company is Gillette's largest shareholder with 96 million shares, or about 9 percent of the company.

Buffett said he would increase his holdings so that he would end up with 100 million shares of P&G by the time the deal closes. Under the offer from P&G, Buffett's current Gillette stock would translate to about 93.6 million shares of P&G.

While the companies said the deal was worth a premium of 18 percent for Gillette shareholders, a 3 percent drop in the price of P&G (down $1.30 to $54.02, Research) shares Friday in midday trading tempered the gains. But even with the drop, the deal would still be worth about a 14 percent premium based on midday trading prices.

Even for a billionaire like Buffett, who is one of the country's wealthiest men and one of the world's most widely followed investors, making more than a half-billion dollars is not bad for a day's work.

That's the apparent one-day paper profit Berkshire Hathaway would realize from Procter & Gamble's purchase of Gillette -- based on the midday price of P&G stock, and the exchange ratio for Buffett's 96 million Gillette shares.

Buffett is poised to become P&G's biggest shareholder after the deal. Barclays Global Investors is now the largest shareholder with about a 3.6 percent stake, according to Factset Research. But dilution from the deal would lower its stake, and its roughly 92 million shares would be less than what Buffett will end up with.

Buffett has been Gillette's largest single stockholder since 1989, when his firm bought $600 million in preferred stock, establishing an 11 percent stake in the maker of razors and other men's products, according to news reports. At the time, Gillette had recently fought off two hostile takeovers.

http://money.cnn.com/2005/01/28/news...ex.htm?cnn=yes

[GODDESS6]

Originally Posted by gldstwmn

Billionaire investor sees longstanding bet on Gillette pay off; one-day gain tops $645M.
January 28, 2005: 3:15 PM EST

NEW YORK (CNN/Money) - Legendary investor Warren Buffett had nothing but praise Friday for Procter & Gamble Co.'s $57 billion deal to buy Gillette, which helped him make about $645 million -- in one day.

Of course that's only a small part of the profit he's made on his holdings over the 16 years or so he's held the stake in Gillette.

Based on an initial investment of $600 million by his Berkshire Hathaway holding company in 1989, the investment has seen a gain of more than $4.4 billion, not counting dividends. That works out to about a 14 percent compounded annual return.


So it wasn't surprising that Buffett, Gillette's largest shareholder, was singing the praises of the deal Friday.

"Over that time we've been happy with that investment but I've got to tell you I'm happier today," Buffett said in a statement played Friday during a conference call to discuss the proposed acquisition. "It's a dream deal,"

Berkshire Hathaway holding company is Gillette's largest shareholder with 96 million shares, or about 9 percent of the company.

Buffett said he would increase his holdings so that he would end up with 100 million shares of P&G by the time the deal closes. Under the offer from P&G, Buffett's current Gillette stock would translate to about 93.6 million shares of P&G.

While the companies said the deal was worth a premium of 18 percent for Gillette shareholders, a 3 percent drop in the price of P&G (down $1.30 to $54.02, Research) shares Friday in midday trading tempered the gains. But even with the drop, the deal would still be worth about a 14 percent premium based on midday trading prices.

Even for a billionaire like Buffett, who is one of the country's wealthiest men and one of the world's most widely followed investors, making more than a half-billion dollars is not bad for a day's work.

That's the apparent one-day paper profit Berkshire Hathaway would realize from Procter & Gamble's purchase of Gillette -- based on the midday price of P&G stock, and the exchange ratio for Buffett's 96 million Gillette shares.

Buffett is poised to become P&G's biggest shareholder after the deal. Barclays Global Investors is now the largest shareholder with about a 3.6 percent stake, according to Factset Research. But dilution from the deal would lower its stake, and its roughly 92 million shares would be less than what Buffett will end up with.

Buffett has been Gillette's largest single stockholder since 1989, when his firm bought $600 million in preferred stock, establishing an 11 percent stake in the maker of razors and other men's products, according to news reports. At the time, Gillette had recently fought off two hostile takeovers.

http://money.cnn.com/2005/01/28/news...ex.htm?cnn=yes

wow, he is from omaha where i live, he does alot 4 the community here, always has his stockholder meetings here which generates lotsa profit 4 the city~

[strandinthewind]

Think he wants to adopt me

[amber]

Originally Posted by strandinthewind

Think he wants to adopt me

I know. That amount of money boggles my mind. I'm like "hey, can ya send me a hundred bucks?"
Also, doesn't gillette do animal testing?

[strandinthewind]

Originally Posted by amber

I know. That amount of money boggles my mind. I'm like "hey, can ya send me a hundred bucks?"
Also, doesn't gillette do animal testing?

almost all companies do some sort of animal testing be it on their own or via the supplies they use in their products.

Here is a list from a fantical web site - good luck avoiding these

http://pw2.netcom.com/~axleplus/stuf...f/company.html

Companies That Test on Animals

Allergan Inc. [US]
Alcon Labs
Applewoods [ROLLING PLAN]
Arm & Hammer (Church & Wright) [US] PETA
Astley Dye & Chemical Company (ACDO) [ROLLING PLAN]
Andrew Jegens Co. (Ban, Bioré, Curél) [US] [QUESTIONABLE per NAVS]
Aziza

Bay House Aromatics [ROLLING PLAN]
Baush & Lomb (Curel, Soft Sense, Clear Choice) [US]
Beauticontrol Cosmetics [MORATORIUM]
Betterware [ROLLING PLAN]
BioForce UK [UK] [ROLLING PLAN]
Bic Corp. [US] PETA [MORATORIUM]
Block Drug Co. (Sensodyne, Carpet Fresh, Lava, Polident) [US] PETA
Boots Plc [UK] [through BASF]
Brodie & Stone [ROLLING PLAN]
Braun (Gilette Co) [DE] [MORATORIUM]
Breck [MORATORIUM]
Bristol-Myers Squibb Co. (Matrix, Clairol, Ban, Final Net, Redmond, Herbal Essences, Sea Breeze, Aussie, Keri) [US]
Bronnley [ROLLING PLAN]
Boyle-Midway (Reckit Benckiser, Coty, Jovan, Lancaster) [CA] PETA

Calvin Klein (Unilever)
Carabay Seaweed [ROLLING PLAN]
Carlonina Herrera [US]
Chesebrough-Ponds (Aziza, Fabergé, Cutex, Oil of Olay, Vaseline) [US] PETA
Church & Dwight (Arm & Hammer, Arrid, Lady's Choice, Nair, Pearl Drops) [US] PETA
Clarion (Sea Breeze)
Clairol Inc. (Proctor & Gamble) [US] PETA
Clorox (Pine Sol, Armor All, Tilex, S.O.S., 409, SoftScrub, Fresh Step ) [US] PETA
Colgate-Palmolive Co. (SoftSoap, Palmolive, Ajaz, Fab, Speed Stick, Mennen, Hill's Science Diet (sadly)) [US] PETA [DECLARED MORATORIUM Apr '99]
Consumer Value Stores (house brands)
Cosme Decorte [JP]
Coty (Davidoff, Joop!, Jovan, Lancaster, Rimmel, Stetson) [US] PETA
Color Me Beautiful [ROLLING PLAN]
Cover Girl (Procter & Gamble) [US] PETA
Crimpers Pure [ROLLING PLAN]

Dana Perfumes [US]
Del Laboratories (Sally Hansen, Natural Glow, Naturistics, Flame Glow, Commerce Drug) [US] PETA
Dial Corp. (Purex, Renuzit) [US] All for Animals
Dome Cosmetics [ROLLING PLAN]
Donna Karan Beauty Company (Has anti-animal testing policy, but markets fur)
DowBrands (Glass Plus, Fantastik) [US]
Dracket Products Co. (S.C. Johnson & Son) [US] PETA

EcoLab Inc. [US]
Eli Lilly & Co. [US]
El Sanofi Inc. (Yves Saint Laurent)
Elizabeth Arden (Unilever)
Enamelon Inc. [US]
Erno Laszlo [US] PETA
Estée Lauder Cos.(Clinique, Origins, Jane, Origins, Donna Karan) [US] (has formal anti-testing campaign, but is responsible for a lot of fur marketing and propaganda)
Ettusais [JP]

Faberge
Fendi (Elizabeth Arden)
Fernsoft [ROLLING PLAN]
Flame Glow
Fort James [ROLLING PLAN]

Gallery Cosmetics [ROLLING PLAN]
Gehe UK [ROLLING PLAN]
Gillete Co. (Liquid Paper, Flair, Jaffra, Duracell, Braun) [US] PETA [MORATORIUM]
Givaudan-Roure [US] PETA
GWP Group [ROLLING PLAN]
Gucci Parfums (Yves Saint Laurent, Van Cleef, Oscar de la Renta, Fendi) [Note: I can't find any formal information on their policy anywhere. If anyone comes across something, please let me know]

Happidog Pet Foods (!!!) [ROLLING PLAN]
Helene Curtis Industries (Finesse, Unilever, Suave) [US] PETA
Henkel (Schwarzkopf, Dep) [DE] PETA

IAMS (yes, off topic, but disturbing for a pet food company)
Intimate Brands (Bath & Body Works tests ingredients, Veronica's Secret sells fur)[US]
ISO
IPSA [JP]

JCB Developments [ROLLING PLAN]
Jhirmack (Playtex) [US]
Jergens, Andrew Co. (Bioré) [MORATORIUM] [Parent Company (KAO) tests]
Johnson & Johnson (Neutrogena, Clean & Clear, Roc) [US] PETA
Johnson Products Co. [US]
Jovan (Quintessence)

KAO Cosmetics [JP]
Kanobe [JP]
Kimberly-Clark Corp. (Kleenex, Scott Paper, Huggies) [US] PETA
Kingsmill Cosmetics [ROLLING PLAN]
KMS Research Labs [ROLLING PLAN]
Kose [JP]

Laboratoires Garnier (Ambre Solaire, Maybelline, Synergie, Movida, Fructis, Nutralia) [FR] [have adopted policy against testing, however for now, NAVS lists them as "questionable" and no other group seems to endorse them]
Lamaur (Willow Lake, Colorsoft) [US] PETA
L & F Products [US]
Lever Brothers [US] PETA
Lifestyles [ROLLING PLAN]
Lloyds Chemists [ROLLING PLAN]
L'Oréal (Anais Anais, Biotherm, Cacharel, Cosmair, Gemey, Giorgio, Gloria Vanderbitl, Inné, Helena Rubenstein, Jade, La Roche Posey, Lancôme, Lanvin, L'Oréal, Ombrelle, Phas, Polo, Ralph Lauren, Redken, Soft Sheen, Vichy) [May Still be Testing Ingredients] [FR] AAVS
LPI Cosmetics !!! [ROLLING PLAN]

Manetti & Roberts [IT]
Marlene Klein Cosmetics [US]
Marshall Pet Products (make pet products, while selling animals to research labs!) [US]
Max Factor (Procter & Gamble) [US] PETA
Mead [US] PETA
Melaleuca Inc. [US] PETA
Mennen Co. (Colgate-Palmolive) [US] PETA
Micol Direct [ROLLING PLAN]
Miss Selfridge [UK] [ROLLING PLAN]
Murphy Phoenix Co. (Colgate-Palmolive) [MORATORIUM]

Nalgene (Water bottle maker, imports lab animal restraints!)
National Trust [UK] [ROLLING PLAN]
Natural Eco Trading [UK] [ROLLING PLAN]
Nature's Sunshine Products [UK] [ROLLING PLAN]
Naturelle
Neoteric Cosmetics (Alpha Hydrox) [US] PETA
Neutrogena [US]
Neutron Industries Inc.
Noxell (Procter & Gamble) [US] PETA

Olay Co./Oil of Olay (Procter & Gamble) [US] PETA
Oral-B (Gillette Co.) [US] PETA [MORATORIUM]
Original Additions [UK] [ROLLING PLAN]

Pantene (Procter & Gamble) [US] PETA
Parfums Givenchy SA (Givenchy, Extravagance, Amarige) [FR]
Parfums International (White Shoulders) [US] PETA
Parker Pens (Gillette Co.) [US] PETA [MORATORIUM]
Pennex
Perrigo [US]
Pfizer Inc. (Bain de Soleil, Visine, Plax, BenGay, Viagra!) [US] PETA
Playtex Products Inc. (Banana Boat, Woolite, Baby Magic) [US] PETA
Prince Matchiabelli
Procter & Gamble Co. (Secret, Crest, Vidal Sassoon, Tide, Cover Girl, Max Factor, Old Spice, Hugo Boss) [US] PETA
Publix Super Markets
Purex Corp. [MORATORIUM]

Quintessence

Reckitt Benckiser (Coty, Lysol, Mop & Glo, Resolve, Spray 'N Wash, Woolite) [US] PETA
Redmond Products (Part of Bristol-Myers Squibb)
Reflect.com (P&G Spinoff)
Richardson-Vicks (Procter & Gamble) [US] PETA
Rimmel (supplied by Unilever)
Ronson International [ROLLING PLAN]

Sara Lee [ROLLING PLAN]
Sally Hansen (Del Laboratories) [US] PETA
Sanofi (Oscar de la Renta, Yves St. Laurent) [US] PETA
Schering-Plough (Coppertone, Ban de Soleil, Dr. Scholl's) [US] PETA
Schick (Warner-Lambert) [US]
Scott Paper Co. [US]
Scottish Fine Soaps [UK] [ROLLING PLAN]
S.C. Johnson & Son (Pledge, Drano, Windex, Glade)
Seven Seas [ROLLING PLAN]
Shiseido Company Ltd. [JP]
SmithKline Beecham (AquaFresh, Contac, Tums) [US] PETA
Sofina [JP]
Softsoap Enterprises (Colgate-Palmolive) [US]
Sterling Drug [US]
Suave [US] PETA
Sunshine Makers (Simple Green)
Sun Star [US]

3M (Scotch, Post-It) [US] PETA

Unilever (Lever Bros., Calvin Klein, Elizabeth Arden, Helene Curtis, Ben & Jerry's, Aim, Close-Up, Dove, Finesse, Salon Selectives, Pond's, Vaseline, Sure, Pepsodent, Mentadent) [US] PETA

Vidal Sassoon (Procter & Gamble) [US] PETA
Victoria's Secret [US] [Sell fur products at stores]
Viktoria Apothekere (Phas) [CH]
Vogue International (hair care)[US]

Warner-Lambert (Lubriderm, Listerine, Schick) [US] PETA
Wellbeing [ROLLING PLAN]
Westwood Pharmaceuticals [US]
Whitehall Laboratories

Xynergy Health Products [ROLLING PLAN]

Yvonne Gray [UK] [ROLLING PLAN]
Key: AT=Austria, AU=Australia, BE=Belgium, CA=Canada, CH=Switzerland, DE=Germany, FR=France, IL=Israel, IT=Italy, JP=Japan (gov't requirement), UK=United Kingdom, US=United States

Moratorium implies that the company has said they will currently not test any products on animals, however, by nature, the term 'Moratorium' implies a temporary state where they could start up again at any time.

Rolling Plan indicates the company does not use ingredients currently tested on animals, however if something is tested now, then in three to five years time, they will use it (which fits conveniently into product rollout cycles). _________________________________________________________

Note: I am all for not having animal testing expect perhaps for medical purposes and even then only in the neediest of cases. But, everyone has a different opinon on this tricky and passionate issue - that is mine

[amber]

Yep, I think i use products from 3 of those companies. Palmolive, L'Oreal (not currently, but i love Anais Anais)
and Victoria's secret, very occasionally. Oh, wait, i also have some Drano. And possibly some razors from a company...
Not too bad, though!
thanks for the list; 'preciate it.

[strandinthewind]

Originally Posted by amber

Yep, I think i use products from 3 of those companies. Palmolive, L'Oreal (not currently, but i love Anais Anais)
and Victoria's secret, very occasionally. Oh, wait, i also have some Drano. And possibly some razors from a company...
Not too bad, though!
thanks for the list; 'preciate it.

No prob

and between those companies and the companies that have or have had in the past horrible business practices like Wal-Mart, GE, and others, we would be making most of our stuff overselves from the plants in our backyards if we not not patronize any of them

[amber]

Originally Posted by strandinthewind

No prob

and between those companies and the companies that have or have had in the past horrible business practices like Wal-Mart, GE, and others, we would be making most of our stuff overselves from the plants in our backyards if we not not patronize any of them

Guess so. sort of. I try to get most of my stuff from whole foods, and check for stuff like that, but it really is quite difficult...

[gldstwmn]

Originally Posted by GODDESS6

wow, he is from omaha where i live, he does alot 4 the community here, always has his stockholder meetings here which generates lotsa profit 4 the city~

Buffett is, IMO a standup guy. What I wouldn't give for one share of Berkshire Hathaway!

[WelshWitchPMD]

I thought that this thread was going to be about JIMMY Buffett.

[strandinthewind]

Originally Posted by gldstwmn

Buffett is, IMO a standup guy. What I wouldn't give for one share of Berkshire Hathaway!

- at $90,000 or so a share I would too

Here is Friday's closing:

Berkshire Hathaway Inc Del (NYSE:BRKA)

$90,000.00 1,350.00 / 1.52% 1/28/2005


Open: $88,600 Volume 800

High: $90,300.00 Volume Avg: 400

Low: $88,600.00 P/E Ratio: 17.34

Prev. Close: 88,650.00 Dividend Yield: N/A

52-Week Low: $81,150.00 Market Cap (mil): 114,300.00

52-Week High: $95,700.00

from cnn.com

[gldstwmn]

Originally Posted by WelshWitchPMD

I thought that this thread was going to be about JIMMY Buffett.

They're related.

[WelshWitchPMD]

Originally Posted by gldstwmn

They're related.

Are they really? I did not know that.

[strandinthewind]

Originally Posted by gldstwmn

They're related.

I did not know that

[gldstwmn]

Originally Posted by strandinthewind

I did not know that

They are distant cousins.