Parsad

Time for an activist. LOL Ackman! :P Cheers!

I dont think anyone is demonizing the russian people. It's the institutions and government that people are complaining about that allow those friends of ths government to become billionaires through no talent of their own. But that happens everywhere...no one complains about the same thing in China, India, U.S., U.K., Germany, etc. Alot of people around the world are billionaires with no talent of their own...some even become President of the most powerful nation on the planet! ;D Cheers!

Not the most boring, but the least enjoyable. Why? Because you feel bad about yourself that you are jealous and it doesn't make you feel any better like gluttony or adultery...at least there is some pleasurable aspect in virtually every other sin. But jealously...you lose both ways! Cheers!

He was shorting to maintain a neutral position on attained stock that was issued to him (probably stock reinvestment dividends)...he incurred zero profits or losses. I would prefer if Ross put everything into a blind trust, but this is probably the best we could hope for when the President not only doesn't put his business operations in a blind trust, but continues to manage them while in office. Truly a conflict of interest, but the ass doesn't care what he does or how it looks. Cheers!

Hi Liberty, You are actually probably correct. I think part of the reason is that as people do well in their own lives, they lose a bit of humility and their egos tend to become somewhat enlarged. I have to say, that I'm actually more impressed by my mentors as I'm aging. The reason being isn't so much in what they have accomplished, but how they did it and how they continue to fight or persevere no matter how much the winds might blow against them. Warren Buffett - He continues to do things at his age that simply cannot be duplicated by the vast population of his followers...first you have to live as long as him...second you have to be as damn consistent...and lastly, you have to be as good! Charlie Munger - What is there to say...like Popeye, "I ams what I ams!" Title of "the most interesting man in the world" actually belongs to Munger, not the "Dos Equis" guy! Prem Watsa - Here goes the only man I know whose ego truly disappears every time he makes a deal. Accolades go to everyone except himself! And any philanthropic work he does...just please don't talk about it or mention his name. One of the best leaders I have ever seen. Mohnish Pabrai - Every time someone tells him how badly he sucks, he goes and hits a homerun. Ego is very un-Prem-like, but talent and smarts is all there. One of the few people who will actually say when he sucks wind...but pursues every day trying to make himself better and better. Francis Chou - About the only person I know, that could out humble Prem! Continues to do what he does every day...builds wealth for others and himself...and never forgets who he is and how he got there. I can't say I'm less amazed by these guys today. I know alot more, and have hit a few homeruns myself, but their consistency, longevity and humility, as well as their insights...continue to astound me! Cheers!

Agree. They should not have encountered this issue in the first place. But the fact that they could make the repair over the air through a software upgrade...pretty amazing! Cheers!

On any other day, this would not be a noteworthy article...Consumer Reports recommends the Tesla 3. A week ago, CR found that the brakes on the Tesla 3 were underperforming so badly, that they could not recommend the car. Then Elon Musk had his Tesla team update the software remotely for the antilock braking system, and the brakes performed so much better that CR now recommends the Tesla 3. They not only upgraded the brakes remotely, but a number of other things including touch controls, etc. Nothing new for Tesla owners, but light years ahead of everyone else! Cheers! https://finance.yahoo.com/news/tesla-model-3-gets-cr-recommendation-braking-160939098.html

+1! A decent New York strip cooked properly is as good as the best Wagyu or Kobe beef I've had. The funny thing is, the best chefs in the world do not eat the dishes they dream up daily. They actually prefer to eat more simple food, and they cook more simple food at home. Cheers!

Depends on what you perceive as "best"? Best at creating artistic dishes that entice the palate...then perhaps. I've been to plenty of high-end restaurants, and plenty of "hole-in-the-wall" restaurants...and I have to say that many of the quality "hole-in-the-wall" restaurants have more robust flavours that the "high-end" restaurants can only aspire to create. Then there are those people who simply want what they like and want it cooked the same each time. If you've ever been to Gorat's, you aren't going to walk away thinking "wow, that was the best restaurant I've ever been too, where the food was terrific and the service wonderful!" But that's how Warren Buffett feels every time he walks out. And then if you are like me, and walk out of a high-end restaurant still hungry after spending $300-$400 on dinner for two people...well you know that "best" doesn't necessarily mean "best!" Five Guys anyone? Cheers!

Actually, I think most professional money managers on here will agree, and I'm happy to put in writing if you need me to Eric...75% of the time is spent on client-related, administrative duties, accounting, legal, audit, letters, etc. The 25% of time spent on the portfolio is time that is highly flexible...you can do it anytime, including when the wife and kids are asleep, at school or occupied. For me, 90% of it is done when everyone is asleep. And in your case, you were not a professional. You were a private investor, occupying time socializing when on the message board, and then making large, very extreme bets on a handful of occasions. It's as far-removed from a professional investor as you could get. Cheers!

Yup, stupid proposal. That being said, it's being proposed for by a "cross-border council", and not by any specific party. Cheers!

If any investment manager is touting his or her fabulous returns without mentioning the margin risk he or she took as a fiduciary of his or her clients or is not comparing him/herself to what the index would've done with the same level of margin, I think people should definitely raise an eyebrow. Showing great returns with margin is really easy. But it doesn't make it smart. I'm not opposed to leverage. For example, generally speaking most of what a PE investor is paying for is not for the investment genius of the manager but for the cost of capital arbitrage a PE Firm is able to procure, vs. its investors themselves. Hedge funds have an even lower cost of arbitrage, but its far far riskier because of how quickly it can get called back at the worst time. You said that this wasn't directed at any manager in particular...noted. I thought I would just clear up the leverage Arlington used on that Berkshire bet...remember, BRKA stock was trading at about $92K when that bet was made and intrinsic value by Allan was calculated at about $190K per A share. He took a 50% leverage position and clearly explained it to all partners in his annual report. He also indicated it was the first time the fund had used leverage, but the upside was very high and the downside reflected fully in the price. Now going back to your comments on leverage...IB allows 5-1 leverage? If so, that's nuts and I think most investors would still have a losing record doing that, because if they are wrong for any prolonged period, the losses would start to hammer them psychologically. In fact, I think the average investor using leverage would do worse than the average investor not using leverage...and that's because the average investor is average both analytically and psychologically. Cheers!

I've been thinking about this some, as I know some people invested with Arlington, and they've been spooked by this. I certainly don't think Arlington is a fraud, but how might one convince yourself that it's definitely not? That is, is there anything that would provide definitive proof? -M Was that not the year Berkshire made a huge run...and at one point Berkshire made up 50% of the fund, plus they used margin to lever up on that bet? Any investor can get a copy of the audited financials when they invest capital. Other than the Berkshire bet, Allan has not really used margin or significant leverage. Lending stock to shorts or using options is a pretty common practice...so I'm not sure why investors would be concerned about that. They've been fairly transparent about how they invest, and you can view his 13-F's online to get a pretty good idea when he is adding or selling and roughly what prices he is buying/selling at. I met Allan in Omaha back in like 2006 or something. We were the only two guys sitting at the bar in the Omaha Marriott, across the street from Borsheim's, and watching the hockey playoffs. His personality strikes me more as Francis Chou than anyone else. He's quiet, likes a low profile and doesn't care about the limelight at all. He just likes doing his own thing and letting Ben handle the marketing, day to day stuff. He just likes picking stocks, reading and doing his analysis on ideas. He was stuck around $26M then, had a terrific record after 8-9 years...then as word got out and a couple of articles were written, along with great results, assets ballooned. When you get bigger, you draw more attention...and when you outperform your peers, you draw even more attention. Not sure what type of comfort people would need...but it doesn't really matter one iota unless you are investing with him. And if you are, you should be doing your own due diligence such as asking for and reading the audited financials with annual letter, and even calling his auditor and asking questions to get comfort. I don't think they would regret any investor from doing such due diligence...in fact, they probably are looking for more long-term investors with such a mentality. Anyway, I believe their fund is closed at the moment...correct me if I'm wrong. Cheers!

Yes, but they have only commited to buying it at $300m if there is not a better offer. They would get $9m if a better offer is accepted. $9 million dollar bills don't grow on trees, but for Fairfax, this is pocket change, unless they really buy the asset (which I doubt). I think they would buy it...over $1B in revenue for $300M with all creditors settled and a clean balance sheet. This has Bill Gregson running it written all over it. If somebody outbids them, then they walk away with $9M. The toy industry is one ripe for consolidation...retail brick and mortar stores will struggle against Amazon unless they can get scale and continue to move a lot of their business online. Order online and get delivery or pick up at the nearest store...that's the way everyone is going. Cheers!

They have a ton of retail experience...I'm guessing this is going to be another Bill Gregson turnaround project. My nephew and niece are going to love the fact that I know the owner of Toys R Us now! Cheers!

I do Sudoku every night in the bathroom during my bed-time evacuation. I do enough so that I start to get tired, rather than stimulated mentally. So usually the legs start to get numb! ;D Cheers!

Hi All, Fairfax has put together a special package through Thomas Cook India for Fairfax or Fairfax India investors that incorporates an 8-day/7-night India visit with daily guided excursions to see Fairfax-related companies and historical/cultural sites of India. The dates of the itinerary are January 12th to 19th, 2019. I've seen the itinerary, which is quite expansive, and you would be basically staying at 5-star hotels in various cities, including Delhi, Mumbai, Agra, Jaipur and Bengaluru. Breakfast, lunch and dinner is also included each day...with visits to dine at historical hotels, sites, etc. All transfers are also included. The package has a set price for single or double occupancy. You would also have to pay for your flight to and from India, but Fairfax is working with Air Canada to get some deals on flights as well. If I don't win the silent auction prize for the trip to India, then I will be going on this one. It would be a very good way to see some of India, while being able to learn about Fairfax's India investments...all in a great deal of comfort...especially for the first-time visitor like myself! If you would like more information on this, please email me at [email protected] and I can forward you the itinerary. Cheers! Sanjeev

Online and dinner ($200) ticket sales end Thursday (19th) folks! If you plan on joining us for the our last annual dinner...you've got a couple of days left to get your tickets. Thanks to all of you who are attending and to those that have attended in the past! Cheers!

Online and dinner ($200) ticket sales end Thursday (19th) folks! If you plan on joining us for the our last annual dinner...you've got a couple of days left to get your tickets. Cheers!

Hi Folks, This is our 13th dinner and probably last one in its current format...as support is clearly waning from year to year. We've raised $160,000 in memory of JoAnn Butler, Prem's executive assistant and our friend who passed away from colon cancer in 2009. Everything has its time, and we are very happy we were able to do this for as long as we have. I don't know exactly what next year's event will look like, as the week is so full of other wonderful events, it has relegated ours to one where attendance is decreasing year to year. The most likely conversion will be from a dinner to a simple networking event, with Fairfax coming in around 9pm with their panel. We will probably retain the silent auction, and continue to raise money for Crohn's & Colitis Canada, but we will get rid of the dinner and reduce the price to attend to something nominal to cover the rental of the room and space. So, I'm encouraging all of our supporters, old and new, to join us for our last such dinner. We have some great speakers lined up, including our usual Fairfax panel moderated by Jeff Stacey...and of course, Francis Chou answering questions till 11pm or later! Truly looking forward to seeing you there...one last hurrah! Get your tickets below and check out our event PDF that is attached. https://www.pdh-inc.com/2018-premier-fairfax-conference.html Sanjeev 2018_PDH_FFH_Dinner.pdf

Hi Folks, This is our 13th dinner and probably last one in its current format. I'm encouraging all of our supporters, older and newer, to join us for our last such dinner. Please get your tickets before April 18th, as we have to finalize numbers after that. We have some great speakers lined up, including our usual Fairfax panel moderated by Jeff Stacey...and of course, Francis Chou answering questions till 11pm or later! Truly looking forward to seeing you there...and remember, we are raising funds for Crohn's & Colitis Canada in memory of JoAnn Butler! Get your tickets below and check out our event PDF that is attached! https://www.pdh-inc.com/2018-premier-fairfax-conference.html Sanjeev 2018_PDH_FFH_Dinner.pdf

In most professions, you still create value for your employees, even if you underperform. An underperforming waitress will still serve customers, an underperforming engineer will still do some engineering work for the company etc. An underperforming money manager however will be measured against the easily obtainable index standard and if he doesn’t beat that or worse underperforms by a wide margin, he does not create any value of hits customers, in fact he costs his customers money. His customers would have been better off, if they had never heard or met this persons, that’s the harsh truth. Wasn't this the harsh reality from 1996 to February 2000? And again, from 2003 to 2008? And now you have one of the most prolonged bull markets, with unimaginable manipulation of monetary and fiscal policy, from 2009 to 2018. Value investors looked stupid until February 2000, and then again until October 2008. Unwinding of bonds, increasing interest rates, huge expansion and growth related to a massive tax cut stimulus, and don't forget that sovereign debt relative to GDP hasn't decreased for almost any developed nation over this expansion period. Bubble, bubble toil and trouble! On the positive side, money mangement is one of the few professions where you can underperform and still become filthy rich. Alnesh and I just closed our Canadian Fund after a decade of relative underperformance. The fund was just too small, and operating expenses far too high...we had no fixed fee, only an incentive fee above a 6% hurdle. We didn't become filthy rich, and we made sure all of our partners left the fund with at least the capital they put in or more...four partners who came in during the last couple of years were made 100% whole from our own funds. The Chou Funds might not work quite like that, but at least Francis is one of the few managers in the world who tries hard to be accountable. Cheers!

Value Investor Conference is holding a couple of events Berkshire weekend: Morningstar CEO - Kunal Kapoor on May 3rd Brookfield CEO - Bruce Flatt on May 4th See details below: http://www.valueinvestorconference.com/valueinvestorregister.html#OVD2

Post only if 100% ok with Ben and Allan...otherwise it will be removed and the poster banned. Cheers!