Parsad

I'm all for him making restitution, accepting the blame and moving forward. I believe in second chances. But I'm not sure you get a second chance as a fiduciary or CEO of a public company...there is a very clear line on how you behave as a steward of capital. And then the natural question that comes up is: Was this disclosed to partners before they joined his fund, or to the board of Paragon before they added him? Cheers!

I don't know, but don't you think See's should make chocolate chip cookies too, since they have their own See's chocolate baking chips? Cheers!

To say I'm blown away and shocked is an understatement...hello! Cheers! http://finance.yahoo.com/news/sed-international-holdings-issues-letter-150000626.html

Liberty, how did you do that? The photo edit program I was using wouldn't let me rotate the picture. Thanks for doing that! Cheers!

No, but if you run into him or Buffett, they are usually gracious enough for a photo...just quicker than an autograph. Used to be where you could actually talk to them a bit, but now just way too many people everywhere. They're like Mick Jagger and Keith Richards, except it isn't young women chasing after them, but 20-50 year old value investors. Cheers!

One of our boardmembers had a chance to have his photo taken with Charlie at the Daily Journal AGM. Apparently, Charlie was just sitting off by himself eating some lunch. For you hardcore cultists, he was eating a salad and a cookie! Cheers! [Click photo to enlarge...unfortunately could not rotate the picture in photoshop]

Great notes guys! Thanks very much. Cheers!

Since we have evidence that some of you attended, please feel free to share whatever notes you may have taken. Much appreciated! Cheers!

If they want to introduce themselves, that's fine...just in case they want to remain anonymous. Cheers!

No worries! Cheers!

That would be quite under Prem's goal. What is the relationship between Fairfax and Hamblin Watsa? How are investment decisions made? They will average close to 15% annualized over time...I'm talking 10-20-30 years. You have 3.5-1 asset to equity ratio. They've historically averaged close to 5% on the overall portfolio. After operating expenses and viewing their underwriting long-term (since they generally over-reserve and release surpluses), they can get the 15% ROE. The relationship between Fairfax and Hamblin Watsa is that HW is the investment manager for all of the capital. You have six heads plus input from the analysts. The six heads are allocated small pieces of the pie and the analysts are given even smaller pieces. For large investments, there has to be consensus by the six heads. Prem has final say, but it is primarily a collective, team effort. Cheers! Why do people make it seem like Prem is the one making investment decisions when HW the one? It seems like Prem's is more of a veto role. Yes, that would be correct. But as Chairman, CEO and pretty much the face of the company, all decisions ultimately fall on his shoulders. I think the characteristic that Prem provides, which always takes a back seat to insurance, investments and the business, is simply his leadership abilities. In a team environment, you cannot have an efficient, constructive and cohesive atmosphere unless the leader provides it. Buffett does not work in a team environment...managers run everything and he makes all of the investment decisions other than the small portfolios Combs and Weschler handle. That is actually quite different than what HW does...and a testament to Prem and his colleagues. Cheers!

Tim McElvaine sent me a photograph today with the caption..."Stumbled across these hooligans!" Apparently, a mess of our boardmembers were at the Daily Journal Meeting today and Tim was nice enough to snap a photo of the brood. Thanks Tim! Cheers! [Click on photo to enlarge]

That would be quite under Prem's goal. What is the relationship between Fairfax and Hamblin Watsa? How are investment decisions made? They will average close to 15% annualized over time...I'm talking 10-20-30 years. You have 3.5-1 asset to equity ratio. They've historically averaged close to 5% on the overall portfolio. After operating expenses and viewing their underwriting long-term (since they generally over-reserve and release surpluses), they can get the 15% ROE. The relationship between Fairfax and Hamblin Watsa is that HW is the investment manager for all of the capital. You have six heads plus input from the analysts. The six heads are allocated small pieces of the pie and the analysts are given even smaller pieces. For large investments, there has to be consensus by the six heads. Prem has final say, but it is primarily a collective, team effort. Cheers!

There hasn't been a period of time in my last 16 years of investing, where I sweated even one night about the market leaving me behind and not being able to deploy capital. Cash has never burned a hole in my pocket. Cheers!

The reason I get worried is because you see stuff like this. http://finance.yahoo.com/news/sucker-alert-insider-selling-surges-181720960.html;_ylt=Asw147XxuPTbQNTJF_qHtMKiuYdG;_ylu=X3oDMTQ4YmQwdHRoBG1pdANDTkJDIFRvcCBTdG9yaWVzBHBrZwNiNDk2OGEzNi1iOWZlLTM3YmQtYmYxYS05MTZjNTEwZjQwM2UEcG9zAzIEc2VjA01lZGlhQkxpc3RNaXhlZExQQ0FUZW1wBHZlcgM3NmE1NjE1MC02ZmMwLTExZTItYmVlYi02YzJiMWNmYmZlZDk-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3 As I mentioned about a month ago...the dumb money is just really starting to flow. I don't think there is any imminent collapse, but when it comes in a few months...year...two years...it's going to be a painful one because you don't have any other catalysts left to push asset prices back up again. May be stagnant for a period. Interest rates are at historic lows; deleveraging on the sovereign level is at the very early stages; debt capacity of sovereigns is not high without pushing up rates on their own bonds; pension plans/institutions/endowments have all suffered low returns for a decade...all the buttons have been pushed. There isn't enough money corporations, hedge funds and private equity firms to bolster another significant downturn without Fed involvement, and the Fed just can't afford to get involved if things turn down. Just not enough premium for some of the risks out there. Pick and choose your battles people! Cheers!

Double entendre? Well, we are getting fuc....! ;D Cheers!

I'm getting quite worried and antsy about this market now. Too much hubris and too much money flowing into everything. Is this 1937? More capital has flowed into stocks last month since February 2000. Manager letters I read...most are batting very high percentages on their ideas...Tilson says he was right on 7 of 8 ideas since he took over the funds. ;D Enjoy the next few months, as I'm concerned about what happens when all this lubrication starts to disappear. Cheers!

They probably couldn't get the votes for the dual class structure. What happens if those that are exhausted of this company decide that they don't want to throw any more money at it, and don't subscribe to their full alottment? I wonder who is going to oversubscribe on all of those warrants, which will probably be available at a discount to book. Maybe he should just take this thing private like Dell! ;D Cheers! I saw this and thought the same thing... That said, everything has a price in which it is cheap. Serious question: would you (or anyone else here) buy BH at a discount to tangible book? Say, $200/share? I would get tempted, though, would like to see it cheaper. I sold all my stock after the employment agreement, and have since discounted further since the licensing of his name... That was wholly ridiculous. I wonder who would be interested in essentially buying 9% of the company at this price. Yes, definitely...I love that burger chain! Also, it would be cheaper to run a proxy against him. ;D Perhaps, that is what is happening and it's why we are seeing some of these things come into play...licensing, cancellation of the dual-class, rights offering. Maybe there is a disgruntled shareholder out there who has had enough. Cheers!

They probably couldn't get the votes for the dual class structure. What happens if those that are exhausted of this company decide that they don't want to throw any more money at it, and don't subscribe to their full alottment? I wonder who is going to oversubscribe on all of those warrants, which will probably be available at a discount to book. Maybe he should just take this thing private like Dell! ;D Cheers!

The sole heir to the In & Out restaurant chain will gain 50% control soon. There is talk of her selling, of Buffett's interest in the business, and it seems a plausible scenario where she could escape the limelight and politics of ownership. I think Prem should make a run for it! ;D Cheers! http://www.bloomberg.com/news/2013-02-04/youngest-american-woman-billionaire-found-with-in-n-out.html

Having spent 15 years in the Seattle area, I'm if somebody gave me a waterfront mansion in Seattle for free, I still wouldn't want to live there again -- well, I'd use it as a summer home only (nice in August/September). I don't find Seattle or Vancouver dreary. I like the four seasons...and you get that here, and I would suppose in London as well. The rain keeps the streets spotless, the grass and trees green, and plenty of snow on the local ski hills during winter. You haughty, toty California guys don't know what you are missing...even though you lived here for 15 years! ;D Cheers! I joke that Seattle doesn't have four seasons either. They have: Spring Fall and Winter Hey c'mon...July and August are pretty close to what most people would call summer...but that's about it. Cheers!

Having spent 15 years in the Seattle area, I'm if somebody gave me a waterfront mansion in Seattle for free, I still wouldn't want to live there again -- well, I'd use it as a summer home only (nice in August/September). I don't find Seattle or Vancouver dreary. I like the four seasons...and you get that here, and I would suppose in London as well. The rain keeps the streets spotless, the grass and trees green, and plenty of snow on the local ski hills during winter. You haughty, toty California guys don't know what you are missing...even though you lived here for 15 years! ;D Cheers!

Hi! Have you checked our "Books" board. There's probably a couple of books in there that cover or relate to what you are looking for. Cheers!

Yeah, I wouldn't mind that. As long as it is used. I don't want one job post in there over two years! ;D Cheers!

With all financials, there is some risk as rates rise, because longer term liabilities are usually offset with longer term assets. As rates rise, the value of the longer term, low-rate asset decreases while the liability remains the same...thus Eric's comment about the equity decreasing and a higher ROE. At some point, rates stabilize and the new business at higher rates will be positive for the financial institution...banks, insurance, etc. I don't know enough about AIG's entire book to tell you what would happen, but from everything I've seen of Benmosche, he seems to be relatively risk averse and is a shrewd operator. But if you have very high interest rates or elevated rates over a period of time like the 80's, it can be quite detrimental for insurers. That also happens the other way too as rates drop and yields drop. AIG survived that so I suspect they won't have much difficulty surviving rates moving the other way. Cheers!