Subject: PILOT
Did WEB overpay for Pilot? A respected writer on SA posted this snippet yesterday:


That leaves Pilot, with sales and margins both down. While retail volumes improved, revenue from bulk fuel sales and trading were both lower. As I stated at the 2023 annual meeting, I believe Berkshire greatly overpaid for Pilot by basing some of the purchase price on sales during a year of record fuel margins. Overall, Berkshire spent $13.65 billion to buy Pilot in three tranches. As you see below in my valuation model, if we value Pilot on H1 2025 sales at a multiple similar to Canadian fuel retailer Couche Tard (ATD:CA), fair value for Pilot would be more like $8 billion. Fuel margins could recover, but Pilot may end up being one of Warren's mistakes requiring an impairment charge.