Anonymous ID: 279a46 Oct. 23, 2018, 7:31 a.m. No.3573519   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>3537

https://www.omaha.com/money/buffett/warren-buffett-did-well-on-loan-to-harley-davidson-but/article_0bd132e1-ab0b-568b-a330-867a84bf1db1.html

 

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For Warren Buffett, could motorcycle maker Harley-Davidson be one that got away?

 

It makes for a tantalizing proposition, at least if you are a Berkshire Hathaway shareholder, a proposition that under one scenario would have been worth more than a billion dollars to the Buffett-led conglomerate based in Omaha.

 

It goes like this: In 2009, Omahaโ€™s Berkshire Hathaway lent Milwaukee-based Harley-Davidson $303 million over five years by buying unsecured notes issued by the manufacturer โ€” essentially, a loan. The maker of street bikes was in a cash crunch as the recession deepened.

 

The interest rate charged by Berkshire Chairman and Chief Executive Buffett? A juicy 15 percent. While the exact repayment terms and schedules arenโ€™t known, on a yearly lump payment at a standard interest-and-principal paydown, the loan would have yielded Berkshire lending income of about $150 million when it was all over.

 

The FRB made available portions of TARP through Treasury and allowed WB to 'bail out' HD. Got 15% to park shares in Berkshire.