Parsad

The buybacks are going to be far more effective than the dividends as far as increasing shareholder value. They actually did the right thing here...buy back shares under book, even tangible book maybe...and retire high interest preferreds. If they just wanted to keep the stock afloat, dividends may have been better. But if they want to permanently increase the value of the shares, then this was the way to go. Also, dividends tie you down to the large institutional shareholders...doesn't matter if loan losses are up, capital levels down...you pay the damn dividend and it's double taxation. You buy back shares and it's permanent...done...more tax efficient and accretive to book and earnings when done right. The Fed cannot cancel your share buyback after it's complete, but they can stop you from paying a dividend. Cheers! Yes, "when done right" is the key here. The only buyback I have seen done right in the last number of years is Seaspan. The list of badly done buy backs far outweighs those done well. SHLD, JPM, Potash corp, are three that immediately come to mind. And Moynihan said there would be more money toward dividends. In one of the interviews, he said that capital would be returned to shareholders...of earnings above required capital...1/3rd to dividends, 1/3rd to buybacks...but he said that would be dependent on the share price and if it made more sense to do buybacks. At this price, I think he believes that buybacks make more sense, as well as retiring the preferreds. Cheers!

Not so fast my good sir. The bet was $7 bil returned to the COMMON. I was very clear about it and asked that you confirm. I can't find it right now but go back to where we bet. I am still winning here. I will happily pay when it's $7 bil to the common. There is still 9.5 months to go. I went back and checked...you sneaky bugger! Yes, you stipulated in brackets "(common only), no other security". I'm going to have to get Txlaw to read any agreement between you and me on a bet going forward! ;D Remind me to give you your "100 Grand Bar" in Toronto. Now I've got to cross the border to get one. Can any of you Americans coming to Toronto, pick one up! Cheers! Perhaps you can have Kraven buy it for you on credit and he can hold the collateral until you pay up. Good idea! Kraven, do you mind just buying a "100 Grand Bar", and I'll give you the dollar (CDN) in Toronto. Although it will be a loonie coin and your bank won't accept it in the U.S. Cheers!

The buybacks are going to be far more effective than the dividends as far as increasing shareholder value. They actually did the right thing here...buy back shares under book, even tangible book maybe...and retire high interest preferreds. If they just wanted to keep the stock afloat, dividends may have been better. But if they want to permanently increase the value of the shares, then this was the way to go. Also, dividends tie you down to the large institutional shareholders...doesn't matter if loan losses are up, capital levels down...you pay the damn dividend and it's double taxation. You buy back shares and it's permanent...done...more tax efficient and accretive to book and earnings when done right. The Fed cannot cancel your share buyback after it's complete, but they can stop you from paying a dividend. Cheers!

Not so fast my good sir. The bet was $7 bil returned to the COMMON. I was very clear about it and asked that you confirm. I can't find it right now but go back to where we bet. I am still winning here. I will happily pay when it's $7 bil to the common. There is still 9.5 months to go. I went back and checked...you sneaky bugger! Yes, you stipulated in brackets "(common only), no other security". I'm going to have to get Txlaw to read any agreement between you and me on a bet going forward! ;D Remind me to give you your "100 Grand Bar" in Toronto. Now I've got to cross the border to get one. Can any of you Americans coming to Toronto, pick one up! Cheers!

Not debt...preferreds. No immediate obligation to retire them like debt. Buying back the preferreds is capital return, as they could have simply chosen to pay the interest on them. No, I plan on spending it. I'm going to buy Kraven a chocolate bar...a "100 Grand" bar...I promised him a good return on capital! ;D Cheers!

I think Ericopoly should buy the whole board a beer when BAC goes over $20 early next year! Then we can take turns getting a ride in his Netjets plane...he can just get them to taxi us around the runway. ;D Cheers!

I win the bet Kraven...$10.5B! Where's my dollar...it's worth $1.02 Canadian...I can get alot for that extra 2 cents. ;D Cheers!

Cheers! http://www.cnbc.com/id/100554413

Chinese Firms Look to Tap Booming U.S. Natural Gas Market: http://www.cnbc.com/id/100553863 Cheers!

Reminder Folks! Get your tickets purchased for the "Ben Graham 2013 Value Investing Conference" and "Fairfax Financial 8th Annual Shareholder's Dinner". Details are below and tickets are going! Cheers! Wednesday April 10, 2013 Ben Graham Centre's 2013 Value Investing Conference Fairmont Royal York Ballroom Tentatively: 8am-5pm Host: Dr. George Athanassakos, Ben Graham Chair at the Richard Ivey School of Business The value investor panel will include Francis Chou, Tim McElvaine, Robert Robotti and Tom Russo. The morning speaker will be Gary Shilling and the luncheon speaker will be Jeremy Grantham. Complete details for George's event, including conference ticket and registration information, can be found at: http://www.bengrahaminvesting.ca/Outreach/2013_Conference.htm Fairfax Financial 8th Annual Shareholder's Dinner Fairmont Royal York Ballroom 6:30pm-11:00pm Host: Sanjeev Parsad, Founder of "Corner of Berkshire & Fairfax" website 6:30pm - Meet & Greet 7:00pm - Speakers & Dinner 8:30pm - Presentation Guests (from you know where!) We will of course have our usual raffle and silent auction. A wonderful dinner is on the menu, and a cash bar will be open again. Tickets are $150 (including dinner), or $75 (no dinner, water & beverages will be available). Get your tickets soon, as we are going to be running low. Just go to the "Corner of Berkshire & Fairfax" homepage (www.cornerofberkshireandfairfax.ca), and click on the ticket purchase box on the right hand side. All profits from ticket sales, auctions, and raffle will be donated to the "Crohn's & Colitis Foundation of Canada", in memory of Prem Watsa's executive assistant, JoAnn Butler.

The only difference is that the Government of Ireland actually took measures to fix the country's problems, while the Greeks seem to be more interested in denying/delaying. Buying into temporary disorder is potentially interesting, but buying into perpetual chaos? Not sure this is the best idea! SJ They'll fix things eventually. People generally do when push comes to shove. After all of the outrage, politics and protest, things eventually go back to some sort of normality. Cheers!

Just seems to an outsider, that Greece has a much more of a systemic problem and Ireland more of a bubble problem. Definitely. But Greeks will continue to run businesses, borrow, save and everything else that people do day to day at financial institutions. There is downside risk, but the upside is that they may end up owning a chunk of the largest and best capitalized bank in Greece, just like they own the only non-government owned bank in Ireland. Invest when things are most pessimistic...Fairfax is great at that! Cheers!

No different than their investment in Bank of Ireland. Cheers!

That is a helluva way to get a date for the festivities. LOL! I think he's just trying to save some money. Cheers!

Hi Folks, I'm looking for silent auction prizes for the Fairfax Financial Shareholder's Dinner on April 10th at the Fairmont Royal York. Last year we had some wonderful donations for prizes. If you would like to donate a prize, and in return have your corporate logo or business contact/cards on the auction table, please contact me at [email protected]. Thanks very much! Sanjeev

I've received a request from someone wondering if anyone wanted to share a room at the Fairmont Royal York for the AGM? Please let me know, and I will forward the contact information. Cheers!

All our best to the Byrne family!

Very good letter! Remains very bearish and made hints that a correction may not be as far as some people think. Some good commentary on things they are doing regarding succession at various levels of the company. Two in particular stuck out...Wade Burton has been added to the Investment Committee and Thomas Cook India will be their vehicle to acquire other Indian businesses. Cheers!

If you want to make money like Eric, there is a business model available with less at risk capital, lower annual returns, just as much leverage, and you can sleep at night...manage other people's money! ;D Mohnish started Pabrai Funds with $100,000 of his own money. After ten years at about 22% annual compounding, he built a net worth of about $45M. He not only sleeps well at night, he takes a damn nap in the middle of the day at the office! Cheers!

The same as Redskin212...over 18% compounded annually! He sent me his results after he looked at Eric's, and it was like he was a chronic underachiever. He's in the top 0.001% of investors and he feels like he underachieved! Eric, I think every guy on here thinks their d**k is a hell of alot shorter than yours today! ;D Time to buy a corvette! Cheers!

It's why I use Ajay's team at UBS. They will work the trade for us at their trading desk, and then we are charged solely on a per share basis. Otherwise, you will have to look for blocks that are offered and try to buy them. Cheers!

That's true. But I think Eric is probably 1 in 100,000,000. The only guys that come close to those returns are startups that take off in a short period of time or daytraders who shot the lights out on a couple of stocks. It's not even likely that Buffett, in his best ten year span in his personal account, was doing what Eric did over the last ten years. And if you ask Eric, I'm sure there were plenty of restless nights when he was thinking, "Have I fu*ked my family over by putting all of our nest egg into one idea?" But he made the bet and his temperament allowed him to get through it. Amazing story, and I'm just proud he did it on my message board. It's a story I'll tell for ages! Alnesh, Andrew and I were talking about it again this morning! Cheers!

We told Eric to start a fund years ago. He doesn't want to. Once he hits a billion, he's going to put all of his money in T-bills and sell paintings on the side of the road for ten bucks each as a starving artist! ;D That's his dream! Cheers!

By the way, someone should be doing a case study on Eric. That's arguably, the greatest investment results over a 10-year period I've seen. Eric, you should come to our dinner in Toronto and speak! Cheers!

It is only possible because of this board, but anyways here's what Fidelity is telling me for the RothIRA -- they have, as of the end of January, been tracking my performance for exactly 10 years: Eric, you've only achieved 73% cumulative over ten years? You'll never be a centamilliionaire! ;D Cheers!