Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
The entire Industrial Group closely follows global GDP & production of heavy stuff in China & meant for China. The entire Industrial Group posts profits roughly the same size as BNI does, aka about 20% of total profits.

PCC, in Industrial, could be esp vulnerable to widespread delays in commercial airline shipments & less maintenance needed due to fewer flights.

Speaking of BNI, volume is down 5.5% again YTD & that is off of a much easier comp in 1q19. There is a risk to BNI volumes in both international shipments of almost anything & almost anything oil-related (oil price fell 20% in a month). So, BNI = another 20% of total profits.
Otoh, BNI's Q1 margins could be strong due to its fuel costs falling faster than its fuel surcharge does.

TTI in Services. Distributor of electronic components (most of them very low value on their own but could be critical to final product) has risks to both supply & demand. Could TTI be 2% of total profits? I'm sure there are clues in some old 10K disclosures.

On the plus side: maybe NetJets sees a demand surge as the 1% refuse to get on commercial flights or see commercial flight options shrink.

Oh boy, refusing to be involved in the digital economy is going to hurt BRK if this does cause another big recession. But, then his cash hoard will see its value.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.