Parsad

Markel's results were excellent when Steve Markel was CEO and Tom Gaynor was CIO. In the last decade, they've struggled a bit under Gaynor, but I suspect that had more to do with the environment for value investing than anything else. Let's see what Gaynor does the next decade. Cheers!

20 years ago, I was asking that question. Prem was pretty close...at that time Steve Markel in tandem with Tom Gaynor was close...Seth Klarman was up right up there...I thought Sardar might have been one...and then there were dozens of pretenders as well. Yet, as time went by it became apparent that no one was as consistent as Buffett, and spoke with such clarity about investing and life in general. Once you combine the ethics...there is no replacement or next one. That's what I came to realize. They actually broke the mold after Buffett! Cheers!

You guys have to remember that Fairfax writes far more long-tail insurance than WRB or MKL...thus the higher volatility and CR's. But long-tail insurance business has the benefit of long-term float. By writing more long-tail business, Fairfax benefits from the winds when insurance pricing is good, but gets hit harder when you do have a massive catastrophe year. Over the last few years, by acquiring Allied and changing up their business a bit, FFH has become a little more diversified...but they still remain a long-tail insurance company. Is FFH underpriced compared to WRB and MKL...yes. But should it trade at the premiums those two trade at compared to FFH...not yet. FFH should trade at 1.2-1.3 times book. The more diversified and consistent they become...the higher you can increase that price to book valuation. All that being said, there is nothing wrong with owning some MKL, some WRB and lots of FFH. You then don't have to worry about how FFH compares, but simply enjoy the ride while benefiting from the other two quality insurers as well. Throw some BRK in there too, since that should be carrying the highest price to book of any of them...and it isn't right now! Cheers!

The CNBC interview in Munger's backyard was from last year, not this year. Munger in particular looked more fragile than last year at the AGM. Cheers!

Sold all my SHOP call options over the last week...almost exactly a 200% gain in 6 months. Cheers!

No, not because my Golden State Warriors are down 3-1 to the Los Angeles Lakers in the playoffs! After watching this year's BRK AGM, I thoroughly enjoyed myself, once again learning little bits and pieces even after 25 years since reading my first BRK Letter to Shareholders. At the same time, the days afterward left me very sad. Why? Because two of my heroes looked the most fragile that I've seen in those same 25 years. My grandmother died last year at nearly 97. My father died when I was 21. We lost several older family members during two years of the pandemic. Many of the closest people to me, who have known me my whole life are now gone. Really, only my mother is the only one left at 72. Loss is something I've grown accustomed to, as well as how finite life is. What are all of us going to do when Warren and Charlie are gone? It's like chocolate and ice cream disappearing from the face of the Earth. An indulgence that investors have enjoyed for so long, so satisfying, and irreplaceable! Berkshire will be fine, and we'll still have Watsa, Gundlach, Gaynor, Klarman and others. But none of them have the same level of clarity as either Buffett or Munger. Sadly, we may have to bumble our way through. So yes, I'm grateful for the time we've had them around us, but I also know that soon will come a day that I will wish we had more time! Thank you Warren & Charlie! The best teachers I've ever had. Cheers!

China total debt to GDP hits nearly 280%! Cheers! https://finance.yahoo.com/news/china-debt-gdp-ratio-rises-042544479.html

Another gem from Munger when asked about practicing law. "I don't think I have a lot of advice on how to succeed in law. I have a son-in-law who works at a modern law practice at a big firm, he says "it's like a pie eating contest where the winner gets to eat more pie!" "And I advise you to avoid that kind of a law firm. Life is too short but to do nothing but eat pie!" Cheers!

Their comments on Elon Musk were priceless and classic Buffett & Munger! I couldn't stop laughing. "We don't want to compete with Elon!" - Buffett "We don't want to go through so much failure!" - Munger Cheers!

No, you can shop directly online or by phone. I've been shopping there for years...mainly BRK memorabilia stuff. Cheers!

A couple of months ago, I sold out of BAC after holding it from 2009. I just couldn't predict the different outlier events that could happen and who was holding what bag. If BRK didn't originate that deal, I doubt Buffett would have held on to BAC...even as terrific a CEO Brian Moynihan is. The industry does well when things are good, but are probably the worst businesses to own when things turn bad. With their leverage, and the stupid things bankers will do, they may actually be one of the riskiest areas to invest long-term, because they will get hit at some point from dumb behavior. And even if you avoided the stupid behaviors of your peers, you will suffer collateral damage for some time from fear. Cheers!

They are essentially out of banks other than BAC, which as GFP said was because they originated that deal and want to remain a reliable partner. Buffett said there could be 3rd or 4th levels of counterparty risk that lead to unpredictable things and the average U.S. citizen doesn't understand banking or how bank deposits are insured. I suspect they expect things to get worse before they get better. On another note, there was a young 13 year old girl who asked a question about US debt and the U.S. dollar. She was extremely poised and eloquent. Maybe Berkshire should hire her or the FDIC should put her in charge of some banks! Cheers!

Ron Olson at halftime was talking about Greg Abel. Literally said that Greg grew Mid-American from a tiny company to what it is today. No mention at all of Sokol or anything. When Buffett cuts you off, the board and everyone else cuts you off too! Tragic and rather cut-throat...the Salomon threat to employees was definitely not pretense, but a precursor if you hurt Berkshire/Buffett's reputation! Cheers!

Ajit Jain in the BRK Q&A (morning session) said that BRK has written 50% more P/C business than 5-6 months ago, because pricing became much more attractive since December renewals, which were disappointing. I would imagine Fairfax continued writing business and growing their insurance subs in the 2nd quarter. Cheers!

I'm certain that Greg Abel is very capable, but after watching today's Q&A (morning session), I sure wish Ajit was 20 years younger. He would be exceptional and the perfect successor to Buffett...in intellect, skill, ethics, ability, leadership and doing these AGM's for the next 40 years! Cheers!

For better or worse...he is immensely kind and gracious to the cult followers. If they could only do the same! Cheers!

Remember, Carol Loomis who is a great writer, edits the BRK annual letter. I don't think Prem uses anyone. Prem has also always operated FFH as a team led company...succession planning was always at the forefront. BRK was really a one-man show until recent history where the two T's were hired and Ajit/Abel started sitting in on the AGM. If you've heard Buffett speak at the AGM, he can ramble. Now Munger...as concise as one can get...and I bet he doesn't use an editor for any letters he writes! Hopefully both Prem and Buffett have the mental acuity of Munger at his age! Cheers!

+1! Totally agree. Even though I think a recession is coming, I bought stocks in one of the most vulnerable areas...retail. A few of them are just so damn cheap...stupid cheap! I'll just keep averaging down if the price falls. Cheers!

Alot of things remain strong with the economy even with rising rates...jobs, mortgage delinquencies remain low, etc. https://www.federalreserve.gov/releases/chargeoff/delallsa.htm But while the goalposts move, there is no avoiding a recession in the future...late 2023/early 2024 is still my pick as rates rise, debt burdens become onerous and lending tightens. https://finance.yahoo.com/news/us-consumer-borrowing-climbs-surge-191715949.html Cheers!

With so much negative news and divisiveness in the media, I thought I would set up a thread sharing uplifting, non-partisan stories. Cheers! https://abcnews.go.com/WNT/video/garbage-worker-turned-harvard-law-grad-paying-forward-99091581

A loss for Canadiana. Cheers!

Milken on Banking Fallout..."Not another crisis." Cheers! https://finance.yahoo.com/news/michael-milken-on-the-banking-turmoil-this-is-not-another-financial-crisis-190746352.html

Half of America's Banks Are Potentially Insolvent https://finance.yahoo.com/news/half-america-banks-already-insolvent-133000968.html Cheers!

Blame global warming! Cheers! https://ca.news.yahoo.com/iceberg-lovers-wild-over-viral-170404767.html

How India's Population Numbers Exploded to Overtake China: https://www.cnn.com/2023/04/28/asia/india-population-overtakes-china-graphics-intl-hnk-dst-dg/index.html Cheers!