Parsad

According to the webcast, they expect a 5% hit to revenues during the penalty period...anywhere from 2 weeks to 6 weeks probably. The prime broker case is set for December 5, 2011 against Goldman Sachs, Merrill Lynch and Bank of America. Cheers!

The CEO of JOE has resigned and Berkowitz has won. Also, I guess Einhorn has lost! Cheers! http://www.bloomberg.com/news/2011-02-28/st-joe-ceo-to-leave-as-fairholme-s-berkowitz-succeeds-in-board-shake-up.html?cmpid=yhoo

I think net income came in lighter due to retailers dropping prices towards the end of the 4th Q. Patrick had said in an interview that they chose not to participate in that and their sales would come in lighter, but they were more profitable on a percentage basis. I don't think the Google issue will be too bad. It was a slap on the wrist by Google, punishment short-term and over time their rating will go up again. Probably nowhere near the top, but also nowhere near where they've dropped to. They'll just have to make sure their search engine optimization is from other sources, rather than some of the ones they were using. Cheers!

If BNSF earned $2.5B in 2010 and Buffett expects to invest $2B in capex in excess of depreciation in 2011, BNSF will only contribute $.5B in actual free cash flow for 2011 (plus any increase in net income)? Am I missing something? Will the capex earn a decent return or is this the price to continue to operate? Alice Schroeder had a very good article on her blog...there's always a first time...in which she discusses how regulated businesses generally have a guaranteed return on capital due to their rates being regulated. So much of this capital at MAE and BNSF over time will be consumed, rather than drifting into the hands of future investment managers, and Berkshire will receive a reasonable return on that capital reinvestment over time. Nothing fantastic, but a reasonable, assured rate over the long-term. Cheers!

Indeed, it was Greenwald, the author of "Graham, Buffett and Beyond" that said "Buffett has lost his mind". May be he will have the courage to come forward and apologise. Well, I think Greenwald was just overly excited over the deal...in a negative way. As I said then, we won't know exactly how good this deal was for some time. Most of us felt Netjets was a good deal, and it really wasn't. It has potential now under Sokol's watch, but that is ten years later. BNSF was a $44B deal, for a company that earned $2.5B in 2010. That's a decent price for such a business with its competitive advantages, but that's not a great price. And that's part of the problem...the great deals will now be few and far between. Berkshire shareholders will have to be satisfied with above average returns. As long as they don't fool themselves, that is perfectly fine and better than the respective indices. But it won't be anywhere near what Berkshire did in the recent past, and definitely nowhere near the heady days of Berkshire's history. It's just not possible mathematically any longer. Cheers!

A steady dividend might unravel a great deal of Buffett's efforts to attract business oriented shareholders. Possibly. I would think that Michael Jordan is still a pretty decent player at his age...making up for his physical deficiencies by his understanding of the game. The same analogy is probably true of Buffett...he's aged, but he's better intellectually at what he does. Now how does Jordan's intellect make up for his physical deficiencies if I ask him to play with a 50 lb. medicine ball, while Kobe Bryant plays with a normal basketball? Heck, how does Jordan compete with that medicine ball even against Chris Bosh? Buffett is now playing with one heavy medicine ball! Let's examinine the final 10-year period that Buffett uses in his letter this year...2000-2010. In 2000, Berkshire had total assets of $136B and equity of $62B. There were plenty of public companies that were larger than Berkshire in 2000 by equity...27 American companies to be exact. In 2010, Berkshire had total assets of $372B and equity of $163B. Only 6 U.S. public companies had more in assets at the end of 2009, and only 3 U.S. companies had more in equity! Berkshire has to look abroad now, because there is no choice. Buffett now has to also seek out more large private companies globally as well. A dividend now isn't just a realistic business option for Berkshire, but is more and more looking like a very rational solution. It would also aid the charitable institutions that Berkshire has endowed with its shares. Those foundations are required to distribute 5% of their assets that are in Berkshire stock. If a 5% dividend were paid by those shares, it is likely that the Bill & Melinda Gates Foundation et al, would not have to sell those shares. Berkshire would still retain the rest of their earnings and would be able to grow intrinsic value without harming any of its subsidiary businesses or its credit rating. Again, I'm not suggesting that they necessarily pay a consistent annual dividend...only that they should now consider paying one based on each year's performance and retained earnings. It would also alleviate the pressure on the future CEO and investment managers, because they will not be able to allocate that capital as well as Buffett. It would be very unlikely, as he is the best there has ever been and large sums are an anchor for him now too. Cheers!

Personally, I totally get Buffett and I'm of the opinion that perhaps it is time for Berkshire to start paying a small dividend. The reason being the obvious...the company is really enormous now, and to move the needle is going to take one gigantic move each time. The Berkshire acquisition letter states they are interested in businesses that earn $75M pre-tax. That won't do anything now. A $75M pre-tax acquisition is something Marmon would look at. That's too small for MAE and GenRe now already, let alone Berkshire in its entirety. I'm not saying pay a consistent dividend each year, but Berkshire should look to do what Fairfax has done, and pay a dividend based on the last year's performance and increase in intrinsic value, and the amount of cash in the holding company. Some years that will be big, and some years it will be small. But setting this precedent now, will make it easier for any future CEO to continue the process without any real shareholder revolt. Just like hiring Todd Combs now, rather than leaving it to the board to decide after Warren and Charlie are gone. Cheers!

I think this is the first year in many, where he's given a fairly concise view of Berkshire's intrinsic value. A terrific letter that discusses the business more than anything else. Cheers!

For all of you guys who held onto the 14% debentures that BH issued from the Western Sizzlin acquisition, BH will be buying them back on March 30th at par value plus accrued interest. You will get $1,035 for every $1,000 of face value. Cheers! http://www.prnewswire.com/news-releases/biglari-holdings-inc-news-release-116682134.html

I take back by critique Treasure. Perhaps, adding him is the best thing Citi could have done. Although I still have a hard time with anyone who makes predictions out to 2050. Cheers!

Yes, I think this is will only lead to good things. Both are high profile value investors, who do alot of community work. Both love to teach. I think there will be a void left after Buffett passes at some point, and these guys along with others including Klarman et al, will help fill those enormous shoes. Cheers!

The chief economist at Citigroup has made some startling predictions by the year 2050! Unfortunately, he didn't see Citi's own future between 2005 and 2009. These guys always crack me up. Cheers! http://www.cnbc.com/id/41775174

I'm sure there are other surprises in store! Maybe Mohnish will be an addition to Hamblin-Watsa in the future? I think that has great potential for all parties. Cheers!

Prem is now on the Advisory Committee for Dakshana! What next? Are these two going to show up with court-side seats at a Laker's game together! ;D Cheers! http://www.dakshana.org/about_us/profile.asp?Type=Advisory Board&ID=61

The same thing happened to JC Penny as well. Cheers!

Berkshire's Letter and Annual Report will be out at 8am EST this Saturday. Should be terrific! Cheers! http://finance.yahoo.com/news/Berkshire-Hathaway-Inc-News-bw-3005051648.html?x=0&.v=1

I cant quite resist, this. What is with all the macro-economic stuff on this board again. You're so right Al! Just last week I made fun of some board members and all of the macro-talk. You set us straight! Now what's the over/under on Fairfax's market price at December 31, 2011? ;D Cheers!

I agree Partner. We're not betting on it in any way, but we just can't see any other outcome going forward for a few years either. Cheers!

could this be a great company but a not so great investment? do we need to wait until Buffett adds or is it about time to slowly start buying? That's what I'm trying to figure out! ;D I never figured it out before, but I thought maybe this time it's different. Cheers!

Yup! As long as you are an accredited investor, email me at cornermarketcapital@gmail.com and we'll give you access. Cheers!

I take offense! ;D According to this article at CNBC, only Mohammed El-Erian and Richard Cochincos have been warning about stagflation. Rubbish! If you read our quarterly letters for the last two years, we warned about a short-term deflationary period and then a likely stagflationary environment. Cheers! http://www.cnbc.com/id/41740766

Sorry Abyli, I think your number is correct. For some reason, my quote said $31 HKD, when it's at $30.10, which would be close to $8.7B. Cheers!

Thanks Abyli! I get $9.06B US. 2.275B shares multiplied by $31 HKD, equals $70.525B HKD. HKD/US exchange is 0.1284. Thus a $9.06B US market cap. Anyone know what the correct shares outstanding is at the moment? Cheers!

To our BYD experts out there: What is the correct market cap for BYD presently? Cheers!

I also have an iphone 4. Do you use any specific app to read this board or just Safari? No, I just use Safari. With the multi-touch, it's easy to zoom in and out, and the clarity of the iPhone screen is great. You wouldn't want to make any long posts on there, but you could do the occasional short post. The other problem is dismal battery life and from what I hear the iPhone and others are not much better. Most of these phones, the battery life isn't going to be as great as a device that is just a phone. On my iPhone: - I receive emails pretty much on and off through the day - Surf the net for a good two hours minimum each day - Receive may three-four calls a day...about 20-40 minutes altogether - Maybe make one or two calls...about 10-20 minutes altogether - Listent to music for at least an hour each day - Sync the phone once a day My iPhone's battery lasts about two full days with that type of use. If I don't use it at all, but leave it on, it lasts maybe four-five days. From what I understand the iPhone 4 battery lasts longer, and I would suspect the iPhone 5 battery is even better. Another negative I have not seen mentioned here is iPhone's poor reception (at least for those on the other end) - I have seen a lot of negative comments on this issue. No reception problems at all in Canada on Telus. When I travel in the U.S., it automatically uses the AT&T Network, where it usually drops 1 out of 8 calls or so. That is a network issue. I don't think you'll have as big a problem if you use the Verizon network for you iPhone. As far as your other issues. Technology changes so quickly, I have no idea what the environment will look like 3-5 years from now. All I know is that if the iPhone works the way it does in 3-5 years, and the competition is still where it is in relative terms, and the service, apps, etc environment remains the same, then there is no way in hell I would use anything other than the iPhone. Cheers!