73 Reds

Many from the Greatest Generation paid the ultimate price with their lives. The hope is we learn something from prior generations and don't repeat the same mistakes. Strength and deterrence would seem to be a worthy objective.

Sure, but that's really not an answerable question because everything we do or don't do has a price. Those who voted for change recognized that status quo was not acceptable.

Yeah, people who are predisposed to dislike or not trust Trump hear things differently than those who support him, or at least understand why he got elected. Anyone looking for pure diplomacy to accomplish anything in this World should probably resign themselves to very low expectations. The very notion that "America First" could win the day reflects a World that became accustomed to and dependent on far too many US concessions at the expense of its own populace, all while the World became an increasingly more dangerous and non-appreciative place. If we can't take care of our own citizens here in this country, how can we help anyone else? Though I often cringe at some of the words that come out of Trump's mouth, his overall message and priorities are the same as most other Americans - even those who didn't vote for him. Who doesn't want safety, prosperity, equal opportunity, ending of wars and a better country for their children and grandchildren?

Until a month ago the proverbial can was being kicked down the road. Again, not speaking to specific govt. contracts, agencies or individuals, but rather the larger picture of trying to address the low-hanging fruit if you will, which no one was even making an effort to identify.

You're bringing politics into the mix which is not relevant to the issue of govt. waste. Until a month ago, nothing has been done. Now we are engaged. As I suggested to another poster, bring on any challenges. The issues will be sorted out and hopefully compromise will prevail. The status quo was unacceptable. At least someone is making an effort. The fact that you, or anyone does not like specific proposed cuts has nothing to do with the larger issue which few folks who are complaining want to address.

How about we have this same discussion after a year, when Elon & Co. will have had time to uncover what you or others may consider to be serious amounts of waste? He is just getting started. What truly is baffling is any suggestion that there is not massive amounts of waste, abuse and fraud in government spending. Would you rather he merely poke around the edges? Does anyone truly believe that deficits can continue to grow indefinitely without consequences or taxing people to oblivion?

OK, then why choose to engage in the first place?

How so? I don't see black or white; there is a lot of gray. If someone doesn't begin the process nothing will change. Sorry you can't see that.

So you're OK with all the ridiculous allocations of your tax dollars now? And you doh't care that many govt. workers are being paid to do ????? IMO the status quo was unacceptable. Bring on the challenges. Any compromise will be an improvement.

<<So is he doing a fine job or did he just start?>> Seems to me, both. Didn't realize they are mutually exclusive.

<<In terms of $ value, Elon didn't cut all that much on the $6T>> He's only been at it for 1 month. Did he resign?

I am reminded of Buffett's repeated laments of how little he [personally] pays in taxes yet when has he donated any additional money to the US Treasury? Some people complain that Elon won't make a dent and other people complain he is cutting too much. This tells me he is doing a fine job.

The "psychological" issue I always had with covered calls is that you are betting against yourself in a way. If you manage the options you can probably generate a consistent, positive return - particularly on a reliably profitable stock like Berkshire. As I've written before you can also win a bet with anyone who doesn't believe you can best the S&P 500 index (and most professional money managers) by writing OTM covered calls against the index and rolling them forward in the event you risk losing your underlying position to assignment. But you're right - time is better spent on other endeavors.

Hi John, I don't use margin (or debt) of any kind because it is not necessary. If you want to try to juice your returns on BRKB you could consider writing call options and rolling them as necessary. I tried this in a retirement account when the shares became optionable (the only BRKB shares I have ever traded rather than just held) but ultimately didn't have the patience to monitor the price and grew bored with the process and stopped doing it altogether.

Much more positive than a year ago. His distaste for payment of a dividend continues (Yay!). Still keeping a lot close to the vest. Not sure why he shuns most foreign equities unless he believes nothing is cheap anywhere.

"The mess"? What would you call $36 trillion (and rising) of debt? And how would you propose to clean it up? I'm pretty open-minded and haven't heard anything close to plausible from critics.

Last year's letter to shareholders was so downtrodden that it is no surprise that in the year that passed there has been little in the way of news to report. I am hopeful that Buffett's letter this year will assume a more positive tone.

+1

Multiples don't tell a complete story and can often be misleading. Quality of earnings, consistency of earnings, predictability of earnings and optionality of earnings are most important in determining value. There are many variables that contribute to each of these; not sure how any book would be helpful. Otherwise if you're looking at an average company, look to comparisons with other companies in the same industry or sector.

Is the issue inheritance planning or investment mix (or both)? These are two distinct issues. Regarding inheritance, a Will and/or Trust should suffice. I don't agree with Buffett that you should necessarily discuss and disclose your wishes with beneficiaries in advance. The simple reason is your plans or circumstances may change and until the time of your death, you are free to change or revoke your Will as often as necessary. Regarding investment mix, this is a difficult task to manage from the grave. There are plenty of resources available for anyone who wants to learn how to invest an inheritance and when all else fails, there are paid asset managers. Buffett's suggestion for his spouse may be appropriate for him and a lot of folks but it may not be optimal for everyone.

Trust and Integrity. There are not many public companies where these qualities are beyond reproach and an annual shareholder letter teaches so many valuable life lessons.

The credit all goes to Buffett and Charlie. There is no real skill in accepting Buffett's advice to treat stocks like businesses rather than exchangeable pieces of paper or clicks. With several other long-term holds, that has been by far the most important key to my investment success in stocks since I generally only buy the lowest of low-hanging fruit when it comes to public equities.

1st share cost me under $1k, including commissions (5% of pp back in those days). Many more since. Buffett created many multi millionaires. Count me as one.

@Viking. Nice post - thanks. If Fairfax can consistently underwrite at a <100 CR and if the investment side avoids the mistakes of the 2010s, the stock may never be a "sell" unless money is needed. This is the way I've viewed BRK for 42 years. In some ways it is great not to be a proficient trader, and as Buffett often says, just treat stocks like you would a business or piece of real estate.

Nah, I think @dwy000 makes a good point. The issue is not so much about Elon and Tesla but rather when does any CEO spread himself too thin? I view this similar to investing in a family controlled business. BODs have very little persuasion over "the Boss". You take the bad with the good and when the two get misaligned, you cut bait.