Subject: Pilot/Flying J
There was discussion that BRK overpaid for their last piece of Pilot/Flying J by several billion. WEB mentioned that the difference between what BP paid for TA and the price BRK paid was that Pilot/Flying J owned their locations. My guess would be that BRK split the acquisition into the two groups. The real estate going to the insurance group and the operations to the operating group as they did with BRK Automotive. Probably paid more than fair value because of the high margins last year in fuel. We did change management which is unusual and it was enough of question for WEB to comment on it. But probably not enough to have a PCP write down. Not everything comes out as planned.