Buffet Bailout for HD
Tourer
Joined: Aug 2008
Posts: 364
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From: pennsylvania
As far as I know, HOG is the major shareholder of HD common stock. If that is true, then no one can buy the company or have a majority of stock in it. But, like I said, as far as I know!
If Buffet did buy a good amount of HD stock, then he must have good insight to the future of the company. Me thinks it's time to buy a little myself!!!!!!
Ride safe and keep the ruber side down
07 FLHTC rider
If Buffet did buy a good amount of HD stock, then he must have good insight to the future of the company. Me thinks it's time to buy a little myself!!!!!!
Ride safe and keep the ruber side down
07 FLHTC rider
Ultimate HDF Member
Joined: Sep 2005
Posts: 8,641
Likes: 26
From: Ozark Country
Tourer
Joined: Jan 2008
Posts: 480
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From: GREENVILLE OHIO
Why are their so many negetive coments about Warren Buffet & CO. Buying HD stock at least he's American . What would you have thought of Honda bought this stock?
Yes Mr. Buffet will make money That's what he does and very well.
The Positive side to this is maybe it will keep the cost of new bikes down and parts to keep ya old one going .
As far as Harley financing goes why use it? any local bank can beat their % rate. Let Harley Davidson make their profits on over priced clothing ,crome ...ect and theirs always the bike it's self.
Yes Mr. Buffet will make money That's what he does and very well.
The Positive side to this is maybe it will keep the cost of new bikes down and parts to keep ya old one going .
As far as Harley financing goes why use it? any local bank can beat their % rate. Let Harley Davidson make their profits on over priced clothing ,crome ...ect and theirs always the bike it's self.
Ultimate HDF Member
Joined: Sep 2005
Posts: 8,641
Likes: 26
From: Ozark Country
Not sure where all this talk about Buffet purchasing a large chunk of HOG stock comes from...
From what I understand he was involved in purchasing newly issued Bonds....
This is from the Times OnLine;
"The motorbike manufacturer receives a $600m in total from Berkshire Hathaway and Davis Selected Advisors, Harley's biggest shareholder
Suzy Jagger, New York
Warren Buffett threw Harley-Davidson, one of the world's most famous names in motorbikes, a $300 million lifeline after agreeing to buy half of the group's newly issued bonds.
But the cost of the billionaire's financial support comes with an astonishing burden - with the motorcycle maker locked in to pay Berkshire Hathaway an annual interest rate of 15 per cent on the investment. The coupon on the bonds represents twice the rate that junk bonds typically pay investors. The bonds mature in 2014.
Both Mr Buffett and Davis Selected Advisors, the fund manager which is also Harley's biggest shareholder, bought the group's new bonds, helping the motorbike maker secure $600 million in new funds. Shares in the group soared by a fifth after the announcement.
The bond sale provides the Milwaukee, Wisconsin-based Harley with more cash after losses at its financing arm led to a 58 per cent decline in fourth-quarter profit. Harley is also cutting 1,100 jobs, or more than 12 percent of its workforce, over two years."
From what I understand he was involved in purchasing newly issued Bonds....
This is from the Times OnLine;
"The motorbike manufacturer receives a $600m in total from Berkshire Hathaway and Davis Selected Advisors, Harley's biggest shareholder
Suzy Jagger, New York
Warren Buffett threw Harley-Davidson, one of the world's most famous names in motorbikes, a $300 million lifeline after agreeing to buy half of the group's newly issued bonds.
But the cost of the billionaire's financial support comes with an astonishing burden - with the motorcycle maker locked in to pay Berkshire Hathaway an annual interest rate of 15 per cent on the investment. The coupon on the bonds represents twice the rate that junk bonds typically pay investors. The bonds mature in 2014.
Both Mr Buffett and Davis Selected Advisors, the fund manager which is also Harley's biggest shareholder, bought the group's new bonds, helping the motorbike maker secure $600 million in new funds. Shares in the group soared by a fifth after the announcement.
The bond sale provides the Milwaukee, Wisconsin-based Harley with more cash after losses at its financing arm led to a 58 per cent decline in fourth-quarter profit. Harley is also cutting 1,100 jobs, or more than 12 percent of its workforce, over two years."
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