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DIEGO SANTOS's avatar

Nice Job!

On your research did you read about Glencore aquisition of Gavilon?

Do you think Marubeni wants to reduce exposal to agriculture, or any other reason?

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Value Punks's avatar

Thanks Diego!

I look at that deal as more of a "carve-up" rather than a sale. They kept the fertilizer business and still plans on operating that in the US (with Helena). Plus, they kept some of Gavilon's grain facilities that are exporting to Japan/Asia. I could be wrong, but I don't get a feel that their focus on agriculture has fundamentally changed. Very opportunistic sale in that recent market conditions created a good price for them to get out of a business that they knew wasn't working out for them.

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DIEGO SANTOS's avatar

Good call , so its more of what you put on the written, focus changed from growing at any cost, to growing where they actually make more money.

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Value Punks's avatar

yup, I think that's the right context!

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Andre Lacheny's avatar

Hi, I am wondering for Mitsubishi how did you reach the conclusion for their WACC, cost of equity, etc.?

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Glen MacLeod's avatar

How much impact did forex have on Buffett's purchases earlier this year?

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Value Punks's avatar

I don't have a view on this one. When he first purchased the Shoshas in 2020, yen was hovering around 107 at the time. Yen's subsequent weakening to 140 was a headwind for returns in USD terms. He may or may not have had hedges. Mr. Buffett certainly has views on the Shoshas' business quality, but I'm not sure if he also had views on forex and if that was a part of the bet.

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