[The $2-Billion Man!]

dont waste a good butter chicken dish like that!!!  bad Sanjeev bad!

[Berkshire Continues To Increase Stake in BNI]

Great conversation here...

 

But with BNI's debt..how much of an impact would the increase in cashflow due to inflation have on it current debt?  If cashflow and enetprise values are expanding via inflation and debt stay the same...then would it not be another positive for the company?

 

Or is this a near sighted thought.

 

thanks

[Precision Drilling]

did they not payoff their bridge loan with the equity issue recently?

[Precision Drilling]

As long as PD can handle the debt load...i wouldnt worry about it. 

 

If we do get inflation down the road, the debt would be a benefit.  Inflationary earnings would pay down the debt quicker as it is static.

 

inflation would make oil higher, and thus more drilling.

[FFH NAV - Market Sensitivity]

80% of book is in equities.  And I don't know, let's assume 33% tax rate.

 

.10 * .80 * .67 = .0536.

 

I guess that lands us at a 5.36% hit.

 

 

 

*so to sum that up...

 

every 10% move (up or down) in their underlying portfolio adjust for a rate of tax at 33% moves the NAV 5.36% (ballpark figures)

[FFH NAV - Market Sensitivity]

Since FFH dopped their hedges late last year...has anybody been able to ballpark a NAV sensitivity to a 10% movement in equity markets?

 

thanks for the info.