Dillard’s department store.

Source: Zereshk | Wikipedia

Shares of Dillard’s gained 27% on Monday — at one point during the session jumping more than 40% — after one of Warren Buffett’s investing lieutenants disclosed a personal stake in the embattled retailer.

According to filings with the Securities and Exchange Commission, Ted Weschler, who is an investment manager at Berkshire Hathaway, bought roughly 1.08 million shares of Dillard’s, or about 5.89% of shares outstanding.

The Friday filing shows that Weschler topped the 5% threshold on Sept. 29. The filing noted that the shares will be held in a trust on behalf of Weschler’s family members.

Shares of Dillard’s are down more than 40% this year amid lackluster sales. In the latest quarter, however, the retailer reported a much smaller-than-expected quarterly loss thanks to inventory and cost control measures. Revenue, however, came up short.

Weschler, along with Buffett’s other protege, Todd Combs, have been responsible in recent years for steering Berkshire into some winning bets in the technology sector.

Weschler joined Berkshire Hathaway in early 2012 after spending a total of $5.3 million for two meals with Buffett through Buffett’s annual “Power Lunch” charity auction.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source Article

Topline

Shares of department store Dillard’s are surging close to 30% on Monday after a regulatory filing revealed that Ted Weschler, one of the highest ranking money managers at Warren Buffett’s storied conglomerate and investment vehicle, Berkshire Hathaway, owns a nearly 6% stake.

Key Facts

Released just minutes after the market-close on Friday, a filing with the Securities and Exchange Commission revealed that Ted Weschler, a Berkshire money manager who many believe could be the firm’s next chief investment officer, acquired shares in late September that pushed his personal holdings past the 5% ownership threshold required for public disclosure. 

Weschler now owns 1,081,000 shares of Little Rock, Ark.-based Dillard’s–equal to roughly 5.89% of the firm’s shares outstanding, the filing notes. 

Shares of Dillard’s soared as much as 40% on Monday, pushing the firm’s market capitalization well past $1 billion, and settling at about $55 per share as of 3 p.m. EDT, about 30% higher than Friday’s closing prices.

Dillard’s stock is still down nearly 22% for the year, but the retailer is now doing much better than its peers: The S&P 500 Department Stores Index is down about 54% in 2020.

Public filings show that Weschler also has substantial personal stakes in healthcare company DaVita and Liberty Media Corp, which owns stakes in SiriusXM, the Atlanta Braves and Formula One; both are firms in which Berkshire also has large stakes.

Berkshire has no reported stake in Dillard’s.

Key Background

Like other department stores this year, Dillard’s has been slammed by the coronavirus pandemic. Total sales in the firm’s most recent quarter dropped by 35% year-over-year to $945 million, which was in line with expectations, but the firm’s loss in the quarter, of 37 cents per share, was more than 90% better than Wall Street expected. Wedbush analysts

  • Shares of Dillard’s jumped more than 40% on Monday after one of Warren Buffett’s investing lieutenants disclosed a personal stake in the embattled retailer.
  • Ted Weschler, who is an investment manager at Berkshire Hathaway, bought roughly 1.08 million shares of Dillard’s, or about 5.89% of shares outstanding.



Dillard's department store.


© Provided by CNBC
Dillard’s department store.

Shares of Dillard’s jumped 45% on Monday after one of Warren Buffett’s investing lieutenants disclosed a personal stake in the embattled retailer.

Loading...

Load Error

According to filings with the Securities and Exchange Commission, Ted Weschler, who is an investment manager at Berkshire Hathaway, bought roughly 1.08 million shares of Dillard’s, or about 5.89% of shares outstanding.

The Friday filing shows that Weschler topped the 5% threshold on Sept. 29. The filing noted that the shares will be held in a trust on behalf of Weschler’s family members.

Shares of Dillard’s are down more than 40% this year amid lackluster sales. In the latest quarter, however, the retailer reported a much smaller-than-expected quarterly loss thanks to inventory and cost control measures. Revenue, however, came up short.

Weschler, along with Buffett’s other protégé Todd Combs, have been responsible in recent years for steering Berkshire into some winning bets in the technology sector.

Weschler joined Berkshire Hathaway in early 2012 after spending a total of $5.3 million for two meals with Buffett through Buffett’s annual “Power Lunch” charity auction.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Continue Reading

Source Article

  • Shares of Dillard’s jumped 15% during premarket trading on Monday after one of Warren Buffett’s investing lieutenants disclosed a personal stake in the embattled retailer.
  • Ted Weschler, who is an investment manager at Berkshire Hathaway, bought roughly 1.08 million shares of Dillard’s, or about 5.89% of shares outstanding.



Dillard's department store.


© Provided by CNBC
Dillard’s department store.

Shares of Dillard’s jumped 15% during premarket trading on Monday after one of Warren Buffett’s investing lieutenants disclosed a personal stake in the embattled retailer.

Loading...

Load Error

According to filings with the Securities and Exchange Commission, Ted Weschler, who is an investment manager at Berkshire Hathaway, bought roughly 1.08 million shares of Dillard’s, or about 5.89% of shares outstanding.

The Friday filing shows that Weschler topped the 5% threshold on Sept. 29. The filing noted that the shares will be held in a trust on behalf of Weschler’s family members.

Shares of Dillard’s are down more than 40% this year amid lackluster sales. In the latest quarter, however, the retailer reported a much smaller-than-expected quarterly loss thanks to inventory and cost control measures. Revenue, however, came up short.

Weschler, along with Buffett’s other protégé Todd Combs, have been responsible in recent years for steering Berkshire into some winning bets in the technology sector. Weschler joined Berkshire Hathaway in early 2012 after spending a total of $5.3 million for two meals with Buffett through Buffett’s annual “Power Lunch” charity auction.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Continue Reading

Source Article

  • Warren Buffett’s Berkshire Hathaway took a surprise stake in Barrick Gold earlier this year.
  • The famed investor’s endorsement could spur more investors to bet on the metal, NovaGold chairman Thomas Kaplan said on an earnings call this week.
  • “He’s made it safe for anyone interested in gold to be looking at the gold narrative,” he added.
  • Kaplan previously benefited from Buffett’s unexpected purchase of 130 million ounces of silver in the late 1990s, as it legitimized the metal as an investment.
  • Visit Business Insider’s homepage for more stories.

Warren Buffett’s surprise bet on Barrick Gold has given investors the green light to buy the precious metal, billionaire investor Thomas Kaplan said on NovaGold’s third-quarter earnings call this week.

Buffett “effectively detoxified gold” when his Berkshire Hathaway conglomerate revealed a $564 million stake in the gold miner in August, the NovaGold chairman said.

“He’s made it safe for anyone interested in gold to be looking at the gold narrative,” Kaplan added, according to a transcript on Sentieo, a financial-research site.

Read More: BlackRock’s investment chief breaks down why Congress passing a second round of fiscal stimulus is ‘quite serious’ for markets and the economy — and pinpoints which sectors will benefit in either scenario

Barrick and NovaGold are 50-50 owners of the Donlin Gold project in Alaska, making Kaplan a major beneficiary of a Buffett bet for the second time.

Buffett disclosed his purchase of 130 million ounces of silver in February 1998, legitimizing the metal as an investment shortly before Kaplan took his silver-mining company public. Kaplan personally thanked the investor at a dinner several years later.

Berkshire’s Barrick Gold bet was unexpected as Buffett previously dismissed gold as a worse investment than businesses, farms, and other productive assets. The metal is “neither of much use nor procreative,” he said