Stunned! Its too hard for Buffett to be defrauded by a German company

category:Finance
 Stunned! Its too hard for Buffett to be defrauded by a German company


Whats the matter?

German enterprise PS order and invoice

Cheated Buffett of 5 billion yuan

Among them, Buffett, the American God of stocks, was cheated in 2017 six point four three Billion euros (about 5 billion yuan).

The involved company, wilhelhel Schulz, is a small and medium-sized family business in Germany, which mainly produces pipe fittings. This area happens to be the strength of German companies, and its prospects are recognized by many investors.

Based on this judgment, in February 2017, Buffetts Berkshire Hathaway company purchased William Schulz company for 800 million euros.

Report on Buffetts acquisition of the company in 2017 by German business daily

William Schulz, Krefeld in western Germany, is a rare family manufacturer specializing in stainless steel production and is estimated to be the fourth richest family in the world.

Unexpectedly, in May 2017, an anonymous internal source found that many financial data of the company bought by Buffett were very suspicious. It was likely that the transaction volume was forged and the business was booming.

In fact, the company not only has poor fundamentals, but also risks bankruptcy.

In April 2020, the case reached the New York arbitration court, which found that the company had misled investors and subsequently covered up key evidence. This is not a closed case, the panel said in a 132 page ruling The evidence strongly suggests fraud, and there are few other recommendations in the record.

According to internal sources quoted by local German media, the fraud of the company actually relies on p-chart. According to the report, the companys employees first scanned the letter paper of the customers company, made false orders and receipts with p-chart, and through these documents, at least 47 business transactions were fabricated.

Despite all this moisture, the Guardian says the companys real value is only one point five seven Billion euros, according to the New York court of arbitration, William Schulz must make up for the false six point four three The difference of 100 million euros. In addition, the company is also facing investigation by the local judicial authorities in Germany.

Cut into aviation stocks and sell banking stocks

The above news is another blow to Buffetts image of God of stocks.

You know, Buffett just lost 385 billion yuan in the first quarter of this year.

On May 2, Buffetts Berkshire Hathaway reported a quarterly loss of $54.5 billion in investment books!

Berkshires big loss is tied to the epidemic.

Berkshire Hathaway is an enterprise group composed of companies covering a wide range of industries, so it can be said that it is a reflection of the American economy. Like the economy, it is being destroyed by the coronavirus pandemic. Buffett warned in February that a large part of our business was affected.

In addition, Buffett has repeatedly appeared the operation of fans.

One of the most concern is undoubtedly at the time of the outbreak of the undercut aviation stocks, and then cut meat aviation stocks. In addition:

On March 3, it increased its shareholding in Bank of New York Mellon, with the shareholding ratio exceeding 10%, which was disclosed on March 13;

April 1, cut meat of Delta Airlines, disclosed on April 3;

From March 16 to April 2, the company reduced its holdings of Southwest Airlines for many times and disclosed them on April 3;

From April 7 to April 8, New York Mellon bank was reduced to less than 10%, which was disclosed on April 9;

On April 15, it increased its shareholding in United Bank of America, with the shareholding ratio exceeding 10%, which was disclosed on April 24;

From May 11 to May 12, the company reduced its holdings below the United States bank of America, which was disclosed on May 13.

After clearing the airline stocks, Buffett began to toss the bank stocks:

On April 15, Buffett increased his holdings in United Bank of America. After the increase, Buffett held one point five one Billion shares of United Bank of America, an increase of 18.51 million shares over the end of December 2019.

In less than a month, from May 11 to 12, Buffett sold the United Bank of America: sold in total forty-nine point seven eight 10000 shares, the average selling price is thirty-three point zero four Dollars.

If the closing price of United Bank of America on April 15 thirty-three point three three In dollar terms, Buffetts average price this time thirty-three point zero four The price of U.S. dollar reduces the stock of American United Bank, neither losing nor earning.

From Buffetts top 15 heavyweight stocks, consumer stocks are the favorite of the stock gods. Davitta, a health care company, and kraft Heinz, a food company, both hold more than 25% of the shares. In addition, Coca Cola and Rh, a high-end furniture brand, are well known.

Share prices have plummeted 24% this year

Lowest valuation in more than 30 years

The valuation of Berkshires shares at the helm has fallen to its lowest level in more than 30 years.

Berkshires current share price looks attractive because it is unlikely to fall to book value.

Brian Meredith, an analyst at UBS, rated Berkshires B shares as buy, with a target price of $233, equivalent to a valuation of a shares thirty-four point nine five Million dollars. In a recent report to clients, Meredith said he believes Berkshires intrinsic value is about thirty-five point two Million dollars. Since 1987, Berkshires average price to book ratio has been One point six In recent years, it has remained stable at One point four About times. Since the late 1980s, Berkshires share price has fallen to book value several times, including during the financial crisis of 2000, 2008-2009 and 2011. Looking forward to the early return of the God of stocks. Source: Yang Bin, editor in charge of China Fund News_ NF4368

Since 1987, Berkshires average price to book ratio has been One point six In recent years, it has remained stable at One point four About times. Since the late 1980s, Berkshires share price has fallen to book value several times, including during the financial crisis of 2000, 2008-2009 and 2011.

Looking forward to the early return of the God of stocks.