Leaderboard

I own all three, and each of them are in my top-5 holdings. FFH is selling at a much deeper discount to BV than the other two which makes it a more compelling buy, all things being equal. In reality, though, is that all things are not equal with the following being among the inequalities. • FFH has historically more big-bets compared to MKL/BRK such as MBS shorts in the aughts and equity hedges a decade later. Markets prefer consistency. • The communication from FFH, IMHO, is not on par with MKL/FFH. Prem tends to be a cheerleader for his company as opposed to Buffett who willingly acknowledges his mistakes and downplays his accomplishments. Markets like candor and generally don’t like cheerleading. • FFH’s longevity of disciplined and profitable underwriting is not on par with the other two. Markets like demonstratable performance. It comes down to this…if you believe that FFH’s future business performance (underwriting and capital allocation) is going to be close to the last 5 years as opposed to the preceding 15 or so (excluding the MBS bet) then FFH is the better investment, especially considering that BRK has gotten so enormous that market outperformance is very difficult. FWIW, I currently have a larger position in FFH than the other two. -Crip