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Whatever average mix they have they've been generating 5% without reaching too much for duration. Thats from a mix of maturities, the Pacwest portfolio impact and other corporates. Thats a perfectly good outcome without too much duration risk in this volatile environment, if you ask me. Whatever they do they will be fairly measured so as not to take on too much risk and keep optionality open in case of a market dislocation. I think as long as they keep generating cash, from their 3-4 engines. Deploying it in this environment will continue to be a nice problem to have.

Maybe China can find a way to manufacture some brain cells and send em our way.

Why can't Trump just stick to the funny stuff, like posting pictures of himself as AI Jesus? That is so funny. The Iran war is not funny.

While I'm extremely bullish on oil prices over the long term, the more immediate concern to me is how surging inflation might affect credit markets.

In the United States today, even amidst record levels of domestic production and factoring out unsustainable SPR drawdowns, we remain a net importer of around 798 million barrels of crude oil annually. Our country's overall consumption of the black gold is roughly 6 billion barrels a year. Given there are approximately 343 million Americans, that's 17.5 barrels consumed for every man, woman, and child in our nation. At 300 pounds a barrel, that works out to nearly 5,300 pounds of crude oil for each person. For perspective, the combined weight of all food and fluids consumed by the average American is only about 4,500 pounds a year. So crude oil is important. Some other points: A. Since the start of the new millennium, global reserve replacements have run at roughly a sixth of current production levels. The world is simply not finding more oil. Furthermore, the small quantities being found often lie in locations requiring high extraction costs. B. Shale wells lose most of their output within their first year, forcing continuous drilling just to keep production flat. This makes shale production an accelerating treadmill driven by steepening decline rates, which continue to increase as operators are running out of prime drilling locations. C. The world's geopolitical situation is fracturing. This has an untold number of effects, not least of which involve the relative value of currencies. Oil prices have an inverse relationship to the strength of the USD, making future monetary policy and the balance of payments increasingly important. But politics remains a great risk to many things, oil investment of course being only one of them. I don't even blame the socialists at this point. That's how you know they're dangerous.

I've owned Fairfax since 1994 and I did add small amounts about 25 times in the period where we here on the COBF forums were obsessing over the valuation. I do not think about Fairfax very often but when I do I always have the same thoughts, much like those I have given I inherited Berkshire in 1975. Here goes: When the price of Fairfax is consistently rising investors obsessively think long term and increasingly get both satisfied and comfortable holding the stock and even consider or act to increasing their holdings. When the stock isn't rising or declines, and this can come both justified and not justified, investors obsess with short time horizons and also they get extremely valuation focused. This valuation focus is generally either PE or price-to-book, but it goes micro focused. My view, one I've shared previously, is that insurance is very much a skill business and the best managements simply are destined/guaranteed to outperform those with less skill. I rank Fairfax very high or even at the top of the skill parade both underwriting and on the investment side. The safest thing in my view isn't to buy the one Berk vs Fairfax selling at the best perceived value, the best thing is to figure out, maybe even model, how much fear and need to escape you'll experience in a price falling atmosphere and judge your level of holdings based on that. The price falling can be both Mr. Market's manic-depressive mood or an event - internal or external - or a cycle or whatever. But if you can profile yourself as well as you can value the business then you can extend your time horizon. Simply put, I would not own more stock than I can stomach for a downtrend. If you can extend your time horizon and manage yourself, your stomach turmoil, then you have a huge probability of doing well owning Fairfax.

I don't do weightings but if I did, higher conviction = more overweight.

With 2-Year Treasuries currently at 4.35%, I think that sacrificing 0.35% of yield for the optionality of being able to redeploy at maturity makes sense, but I’m not in Brian B’s stratosphere in terms of bond investing. -Crip

And yet BMO has a target of $2500 cdn.

Hearing its BMO with the estimate but I haven’t seen the note.

Curious what this board thinks of allocation weight to Fairfax. The dilemma is that I'm already overweight (by quite a bit) Fairfax and Fairfax India - so without going to deep into the details, is investing a huge chunk of your portfolio into Fairfax as "safe" as BRK (I'm tempted to say arguably safer given it's relatively cheaper, but we've also seen Fairfax's past mistakes which have been a bigger drag than what BRK has experienced in its history)

its worked out pretty good with 10 year touch 4.7% today

Yes, I don't think FFH thinks this is an "ideal market for investment grade bond investors". If they did, I think they would extend duration.

FFH is less I think around 2

I listened to the Chubb call yesterday. I thought it was interesting that their Chief investment officer said " This is an ideal environment for investment-grade bond investors" . I will be curious to see what Fairfax is doing on the bond front. I think CB average maturity is around 5 years.

Whole market is down, seems GOOGL's capex guide + middle east flare ups spooked the market

Relentless selling here. If we go below $2000 again, hopefully they lean even harder into the buyback and exhaust it early.

That's kind of subjective.. I find golf extremely boring and yet millions like it.. Billions of people enjoy watching soccer.. I think it's only a toss-up when the teams are closely matched, there is a degree of luck in sports. But you will never see something like Toronto FC beating FC Barcelona..

Chapter 7 and 11 looks juicy to read

I bought this book in 2021 in an obscure second hand book shop in Vancouver. Have not fully read it yet. I knew of the operation as a Montrealer, so that is why it caught my attention. It is an interesting topic. Imagine a world without Michael Saylor and Bitcoin !! What it takes to make the largest movement of wealth from Great Britain to Canada. During WW2, the entire wealth of British treasury was sent in secret to Montreal and kept inside the SunLife building. That became the “collateral” that kept Britain line of credit open. The Canadians being Canadian did not charge any handling/storage fee. *sigh* Total Valuation (Gemini) Wartime Nominal Value: Roughly £1.5 billion to £1.8 billion at the time (equivalent to over $5 billion to $7 billion USD in 1940 values). Modern Inflation-Adjusted Value: Estimated at $160 billion to $300 billion USD today.

Click this link with a Quartr enabled mobile phone, not a computer - digit slides from this morning https://web.quartr.com/link/companies/21159/events/656115/slide?sp=0

I thought BAIL was going to be capped out at about 77M passengers. BIAL has now received environmental clearance to increase capacity to 114M Passengers, including a new Terminal 3. They expect to reach 100M passengers by 2035. https://newsfirstprime.com/bengaluru/big-boost-for-bengaluru-airport-kia-gets-green-nod-to-double-passenger-capacity-to-114-million-12190288

That is correct. The transformation that has already occurred in the Middle East is remarkable. Rather than focusing on near term politics, Trump and Israel are seeking long term solutions. The possibilities are incredible for most moderate Arab countries, along with the rest of the World. Iran will eventually share the bounty but it will require regime change. That is Israel's express goal - with or without US assistance. My guess is a lot is happening that is not being reported so the usual complainers will continue to complain while real progress is being made.

Just little gossip. Spanish football player who scored in world cup final is sponsored by Under Armor