Quote:
Originally Posted by Skid Row Joe
JimB.,
Don't get me wrong - HD is/was one H E Double LL of a business! It just looks like they ran out of customers/sales - so to speak. Not unlike GM and Chrysler.
Berkshire-Hathaway, Inc., and another well-monied firm, between them, loaned HD $600,000,000.00 recently at 15% APR! Who borrows or loans money on those terms? Apparently, HD and the two investment firms, that's who.
You can better believe that Warren Buffett is not in the welfare business in doing so. There has to be a plum in it for him, if HD defaults! Of course 15% APR is nothing to sneeze at.
But here again - case-in-point case study how a Union can kill an otherwise good company.
HD will survive - even if Berkshire-Hathaway, Inc. ends up owning the whole enchilada. It's too good of a market-sector to ignore the recent success of the firm.
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Joe:
I have the impression that maybe Warren Buffett, while not in the Welfare business, may have also took advantage of circumstances to save a truly American icon that was in trouble.
I don't blame him for doing so under a strict businesslike advantage when the risk to him and BH was so high.
You seem a LOT more plugged into this than the rest of us, can you provide further insights here, or at least a studied guess, as to the underlying motivations that are at play?
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