Eldad

At the same time WB said like 10 years ago that it would be malpractice to keep so much cash for this long and that he would have to pay a dividend etc, etc.

Yeah with the liquidation of Combs stuff I thought about that as well. Gotta at least stay neutral on the cash position I would think. Hopefully today’s move is in fact buybacks. The old man must be away at a bridge tournament or something.

I’m starting to notice you are usually right. TFII has been a complete home run. I think about KHC often but just can’t do it even though my gut says it will work. BRO is almost as cheap and probably close to as steady without the CPG structural problems. So I just usually buy more BRO when I get the bottom fishing itch haha.

Well we know WB’s conservatism doesn’t project 20 or even 15 % growth rates into the future so it’s different anyway you slice it.

Gotta trust the managers to make those decisions for their company. They spent a large potion of the AGM preaching decentralization.

Maybe the strategic relationship/friendship is seen as critical to BRK longterm planning. GOOGL is the leader in a lot hypothetical BRK disrupters. Also, maybe they get some preferential nat gas/utility contracts out of it. Who knows. If I’m trying to put the stocks more on autopilot and make it a float levered SPY vehicle, I definitely want to buy tons of GOOGL and MSFT and not so much NVDA and TSLA and the Space thingy.

I love GOOGL and around 25x it isn’t the worst, but BRK buybacks are probably a better use of capital here. Hopefully they are buying even more BRK.

Got some FFH. No BRK today

They say they are following NVR but their numbers are nowhere close. Taylor has inventory turns of 1.01 last year vs 3.75 for NVR. Taylor inventory is 97.32% of equity. NVR is 44.82%. NVR is still far and away the GOAT. That being said, this purchase is a perfect example of the BRK maxim of just don’t do dumb stuff. I love it and it makes me feel even better about Greg.

Fairfax as well

Fairfax

I don’t necessarily disagree with you but I think Chris Bloomstran would probably say in the late 1990s KO got up to like 13% of BRK’s value which I think is similar to what AAPL was and Buffett issued a lot of BRK equity to buy General RE. So kind of backdoor sold KO and got a bunch of bonds and an insurance business. Plus I think KO is like the railroad and will be about the same in 2100 as it is now. AAPL in 2100 is a total crapshoot and if I had to guess, I would guess it will not exist as a stand alone company.

CSU, 2 year treasury

Yeah I bought a lot then and would again. Just something to talk about day to day. Money comes in sometimes when you don’t want it to and it has to be redeployed. It makes it worth thinking about if I might get a better price a little later.

Gundlach always says the FED eventually has to follow the 2 year. 2022 was not a good year. A hike later this year would be very bad for equities I would think. But yes life would go on.

Forgive my ignorance, I have been out of Fairfax a while and recently got back in. Didn’t they promise to change a few years ago and bought GOOGL and JNJ etc? Do you all think the insurance success of the past few years has caused them to regress back to old ways on the stock side? When someone asked if they are looking at software during the AGM, Watsa sort of mumbled something about none of them are anywhere near as cheap/good as UA. Is he resuming a bigger role do you think?

JKHY is like the cheapest in 10 years for those interested. I’m going to pass because of my CSU exposure.

Most definitely. Currently trying to balance that with @frommi point of great deals on the rest. Not a market I would usually want to be 100% in.

Maybe more of a throw him a bone because he asked. I’m getting a lot of vibes of “hey it’s Greg’s show now”, but really it’s still WB majorly in charge of capital deployment. Becky was even like but you check with Greg first right. WB said well Greg might look at the buy sheet at the end of the day.

I thought it was small because it was mostly theater. He went on CNBC and announced it and did the whole salary in stock deal. I appreciated it but I think it was kind of PR.

2 year at 4% today

Yeah PE times P/B less than 22.5. It was kind of a joke, but even still a great company like BRO just passed a 1940/50s value screen in 2026 with the market in a crazy mania. What a crazy world we live in.

Let them cook! my 2nd time around as a Fairfax holder I’m going to be more open minded and just let them do their thing.

No doubt they have hit home runs. Those are all in classic value investing cyclical industries. And those suit their investing personality of wanting to sell above IV. I’m all about them sticking with those.

Yeah UA is more like BB and Toys R Us in my mind and less like Eurobank and other cyclical deep value that seems to have a much higher probability of actually working. But it is very small and probably extremely asymmetric if it works. I just have to try to ignore the stuff like that they seem to like to do.