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lethean46

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    2012 Returns

    in General Discussion

    Posted

    From high in the bleacher stands.  :-)  A great BIG thank you to the board.

     

    +19% (XIRR) for 2012 over four personal accounts.

     

    My portfolios are highly concentrated in BRKB, roughly 75%.  I delegate to WEB.  :-)  Other positions:  AIG, AXP, BAC, BYDDY, FRFHF, GS, USG, and WFC. 

     

    I added AIG and BAC to the mix last year.  Thank you. 

     

    I am very pleased with the 2012 return. 

     

    I'm also thrilled to have finally learned how to use XIRR in Excel.  I'm working on the last 3 years and eventually hope to go back to 1999 when I took control of the accounts and pulled the trigger on my first BRKB buy.  So far, it looks like this:

     

    20% (XIRR) for 2010.  I have yet to finish entry for one account.

    -4% (XIRR) for 2011.  I have yet to finish entry for one account.

     

    War stories to tell.  I bought USG with Marty Whitman at $15.  Bought more with WEB at $17 and $20?  Rode it up  to $30? and then rode it down to $2 buying more shares on the way down.  Froze at the bottom.  Bought USG bonds at $75 when the common hit $2 or so.  Bonds worked out great.  They were redeemed at par and paid all accrued interest.  Then rode 4000 shares up to $76 and didn't sell a single share!  And then, rode the common down to $2, again! - selling shares on the way down.  I still hold some shares with cost basis $2+ and $7 and $11 in Taxable acct and $46 in RO/IRA (rights issue.)  Whew. 

     

    BYDDY is 1% of portfolios bought at 3 different times.  Underwater.  Again, I froze at the bottom.  But this is a long term hold.  I hope Parsad is right and that this is Mohnish's secret personal holding.  That'd be nice!

     

    AIG and BAC are in tax deferred accounts - all ready for dividends.  :-) 

     

    Highlights and lowlights ... 

     

    Thanks again.

     

    ML   

     

       

    Buffett made $62,855,038 last year

    in Berkshire Hathaway

    Posted

    <<<The 2010 donation to the Gates Foundation was worth around $1.6 billion.

     

    http://www.cnbc.com/id/38046115/Warren_Buffett_s_1_6_Billion...

     

    Charitable contributions are generally limited to 50% of AGI. But this is a contribution of appreciated stock and will be limited to 30% of AGI. So Mr. Buffett would be able to deduct only $18.9 million of his donation.>>>

     

    I found the above explanation at the MF BRK board posted by a guy who usually hangs out on the MF tax board. 

     

    ML

     

    Lou Simpson's Firm Info

    in General Discussion

    Posted

    Parsad,

     

    Thanks for that link. 

     

    Interesting that ....

     

    Currently, Ms. Querrey serves as ...... Member of the Board of International Dispensing, ....  Hmmm.  A blast from the past.  I wonder how long she has served on that Board.  Previous to or after her marriage to Lou Simpson?

     

    I read all of the information with great interest.  Is Lou Simpson really available as a manager?  For me?  Wow.  I have been interested since the announcement that he would be running private money out of his new home in Naples.

     

    Now?  Having read this material?  I see some issues of concern.  To wit.  A husband and wife team.  He born in 1936 and she born in 1961.  Did I read that correctly?  Check.  YES.  Get out the calculator.  He is 75 and she is 50.  Dang.  (Better than 50 and 25 though.) 

     

    So now I'm thinking ... that this might be their "together" project.  Uh oh.  HE of GEICO fame, and she of what exactly again?  And how long have they been married?  I have no clue.  But will google it.  Not that the answer will mean much, either way.  A husband/wife team sends up red flags for me, generally.  Then the age difference.  Then her lack of relevant background.  It sounds like she has a LOT of responsibility on THIS one.  Really a lot.  And I don't see that kind of experience in her background. 

     

    Boy. Would I love to go in with Lou Simpson though.

     

    High net worth individuals?  What's the minimum investment?  I didn't see that.

     

    Can you offer any comment on the above? 

     

    I'm having trouble posting now.  The reply box is jumping all over the place.  So I have to end. 

     

    ML

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    I will be googling

     

     

             

     

     

     

       

     

     

    buffett will take questions re Sokol at AM

    in Berkshire Hathaway

    Posted

    Wow, great article, thanks for the link lethean.

     

    Sokol obviously violated the policies of the "Insider Trading" memo. I am just very surprised to hear Mr. Buffet say that the LZ trades had nothing to do with Sokol's resignation. If they didn't, they certainly should have.

     

    FYI.  Buffett didn't exactly say that.  He wrote that SOKOL said that ....  A subtle but significant difference?

     

    ML

    Buffett should Buy this Company

    in General Discussion

    Posted

    I watched the original conversation with Charlie Rose.  Fascinating stuff.

     

    If I remember correctly?  He said electric cars already have superior performance which surprised Charlie Rose.  Increased speed/acceleration advantage in the two ranges that matter to people.  He named them.

     

    Price AND convenience are key.  Given those?  target years were given for % saturation of the market in Israel.  90% in 8 years or so?  I forget the year given ...

     

    There is already an international standards organization.  With many different companies now working on this?  Some things need to be the same ... from company to company. 

     

    My thought, too, was ... how does BYD fit into the picture? 

     

    An awesome conversation/interview.

     

    ML   

     

     

    GS statement

    in General Discussion

    Posted

    Found at TMF BRK board:

     

    >>>>>>>>>>>>>

     

    It seems like there are a number of folks on the board that think that GS is guilty based on SEC charges. Here is the other side of the story.

     

    ----------------------

     

    Goldman's full statement below:

     

    Goldman Sachs Makes Further Comments on SEC Complaint

    The Goldman Sachs Group, Inc. (NYSE: GS) said today: We are disappointed that the SEC would bring this action related to a single transaction in the face of an extensive record which establishes that the accusations are unfounded in law and fact.

     

    We want to emphasize the following four critical points which were missing from the SEC's complaint.

     

    *Goldman Sachs Lost Money On The Transaction. Goldman Sachs, itself, lost more than $90 million. Our fee was $15 million. We were subject to losses and we did not structure a portfolio that was designed to lose money.

     

    *Extensive Disclosure Was Provided. IKB, a large German Bank and sophisticated CDO market participant and ACA Capital Management, the two investors, were provided extensive information about the underlying mortgage securities. The risk associated with the securities was known to these investors, who were among the most sophisticated mortgage investors in the world. These investors also understood that a synthetic CDO transaction necessarily included both a long and short side.

     

    *ACA, the Largest Investor, Selected The Portfolio. The portfolio of mortgage backed securities in this investment was selected by an independent and experienced portfolio selection agent after a series of discussions, including with Paulson & Co., which were entirely typical of these types of transactions. ACA had the largest exposure to the transaction, investing $951 million. It had an obligation and every incentive to select appropriate securities.

     

    *Goldman Sachs Never Represented to ACA That Paulson Was Going To Be A Long Investor. The SEC's complaint accuses the firm of fraud because it didn't disclose to one party of the transaction who was on the other side of that transaction. As normal business practice, market makers do not disclose the identities of a buyer to a seller and vice versa. Goldman Sachs never represented to ACA that Paulson was going to be a long investor.

     

    Background

     

    In 2006, Paulson & Co. indicated its interest in positioning itself for a decline in housing prices. The firm structured a synthetic CDO through which Paulson benefitted from a decline in the value of the underlying securities. Those on the other side of the transaction, IKB and ACA Capital Management, the portfolio selection agent, would benefit from an increase in the value of the securities. ACA had a long established track record as a CDO manager, having 26 separate transactions before the transaction. Goldman Sachs retained a significant residual long risk position in the transaction

     

    IKB, ACA and Paulson all provided their input regarding the composition of the underlying securities. ACA ultimately and independently approved the selection of 90 Residential Mortgage Backed Securities, which it stood behind as the portfolio selection agent and the largest investor in the transaction.

     

    The offering documents for the transaction included every underlying mortgage security. The offering documents for each of these RMBS in turn disclosed the various categories of information required by the SEC, including detailed information concerning the mortgages held by the trust that issued the RMBS.

     

    Any investor losses result from the overall negative performance of the entire sector, not because of which particular securities ended in the reference portfolio or how they were selected.

     

    The transaction was not created as a way for Goldman Sachs to short the subprime market. To the contrary, Goldman Sachs's substantial long position in the transaction lost money for the firm.

     

    ----------------------

     

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

     

    ML

     

    Andrew Ross Sorkin interview with Charlie Rose

    in General Discussion

    Posted

    I saw that interview, too.  It was very good.  Subsequently, I bought Sorkin's book Too Big To Fail and have now read it.  I highly recommend his book for an "inside" look at the crisis, scene by scene.  The book is written in the style of Bob Woodward (not my favorite guy), i.e., sources are not named.  Nevertheless, it is a very good read. 

     

    I understand that Paulson has his own book which will come out Jan 2010.  That should be interesting, too.  It doesn't change my view that Sorkin's book is a very worthwhile read for anyone interested the events surrounding the crisis.

     

    Lethean   

     

         

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