Parsad

Please don't tell me you are as stupid as Jon Stewart and think that balancing the budget equates to extinguishing the debt lol I don't think that's very fair--he did screw it up on the debate, but there is no way he actually thinks that. I think he just had an issue in the heat of the moment. Are you kidding me? Jon Stewart proved to the world just how stupid some of these talking heads are. He could not grasp the difference and was so pro Obama he refused to even listen as O'reilly tried to explain the difference. We live in very very dangerous times. The times are no more dangerous than past crises. Every decade we go through a period of peril and despair, and then the immediate gasp of relief as things bottom and economies eventually turnaround. Every 30 years, the depth of the event looks unmanageable. Every 50 years, it looks like the worst thing that ever happened. I think most people who were around during the time of Pearl Harbor thought it was the worst thing that could have ever happened. Well guess what...70 years later 9/11 came along, and everyone then thought it was the worst thing. Right now, the world is at the depths of a long economic crisis, and eventually we will all come up for air. This too shall pass! Cheers!

You are correct. Berkshire's size will prove to be a detriment. As far as price to book value goes, Berkshire's non-insurance businesses, and perhaps even their insurance business, deserves a significantly higher premium than many others, simply because they are businesses that are on top of their respective food chains. That being said, I think investors will do better long-term with Markel than Berkshire...and they will do even better with Fairfax than Markel! ;D Cheers!

I don't really understand the argument, taxes are only levied on profits, so by reducing your workforce/not growing, you are reducing your profits in the first place. Let's say he makes $2 in profits now, and pays $1 in taxes. He could grow it to $2.5, but now that the rate is 55% instead of 50% (random numbers) he chooses to layoff people and shrink, reducing his $2 to $1.75. Now he makes less money because of his choice rather than more money, even with the change in taxes. If his changes did not affect the $2, then why didn't he do that in the first place? Why not grow and reduce the fat? This CEO's way of growing is to take from his employees and line his pocket with it..."If taxes go up, I'm not paying more, so some of you will be going to cut costs!" That's basically his argument. If there were zero taxes, would there be zero unemployment? I've never met someone who turned away $1000 because they may have to pay $450 in tax, instead of $350, but that's this guy's logic. Go figure! Did tax rates stop Gates from building Microsoft, or Buffett from building Berkshire (please don't bring up float and deferred taxes, because Berkshire pays a ton of taxes regardless)? Yes, exactly. He saves his own ass under the "largesse" of Obama, but hey that's none of your damn business! ;D Cheers!

Although, you've got to love this quote: "It was a stupid error, but it wasn't going to sink our ship," he said. "Only when I come to Washington do people act like making a mistake should never happen. Of course it happens." Cheers!

What a hypocritical jerk and blowhard! Cheers! http://finance.yahoo.com/news/ceo-workers-youll-likely-fired-131640914.html

New prototype walk-up, drive-thru stores. I've always been fascinated by Starbucks and Shultz...it's one of the few businesses that boggle the mind...led by a relentless, passionate CEO that continually evolves the brand. I remember years back, Buffett discussing at an AGM on how coffee on a per capita basis had been decreasing for the last 40 years, yet Starbucks was somehow growing 15-20% a year. Just another great American business story! Cheers! http://finance.yahoo.com/news/an-experimental-new-starbucks-store--tiny--portable--and-hyper-local.html

To sum up, everything being equal, if WFC was being sold at the same valuation levels as say BAC, I'd be all over it. I think it's a great bank. I think they have a polished image that in some respects is well deserved and in other respects is part of a good PR machine. I think that some of their good fortune is due to excellent management and some is due to being lucky to miss out on certain things. I think that there are a number of people who believe that WFC is a superior bank investment because it has the Buffett imprimatur. As I said, good bank, not good valuation. There are tons of banks that perhaps aren't of the same quality but selling for fractions of WFC. Banks that will be increasing by multiples, not percentages. What's the best that happens with WFC? It grows along with the economy and perhaps gets a little multiple expansion. Nothing wrong with that, I just think there's better out there. I agree with that, and I think you could say the same thing about US Bank too. Excellent banks, but their valuations are at a premium to their peers...deservedly so at this point in time. It also doesn't mean that they won't maintain relatively high valuations for some time relative to their peers. They avoided alot of the mess and are expanding when their peers are shrinking. We own both BAC and WFC...the only banks we've ever owned...and we own a hell of a lot more BAC. Cheers!

Satirical writeup by Jonathan Weil. Thanks to Alan for sending it to me! Cheers! http://www.bloomberg.com/news/2012-10-04/how-to-run-your-hedge-fund-from-a-prison-cell.html?cmpid=linkedin

I'm sure more of these are going to pop up against other banks...BAC is probably next. Cheers! http://www.bloomberg.com/news/2012-10-09/u-s-files-civil-mortgage-fraud-suit-against-wells-fargo.html

At some point, when you get significant panic selling in the ensuing rush after a large flash crash, you will not be able to cancel all of those trades. Somebody is going to take a hit eventually (derivatives losses), and it won't be pretty. Markets in the short-term work on confidence and fear, and if you have fear for a prolonged period...such as after a flash crash were people become extremely risk averse...you could see widespread selling. Cheers!

I agree with him on both counts. Cheers!

I've been warning about this for some time, but something bad is going to happen one day from the huge amount of volume HFT's are doing...almost guaranteed to create panic selling at some point in time...and then who knows what it will trigger on the derivative side with counterparty liability. Cheers! http://www.cnbc.com/id/49333454

The hedge fund part is cute, but they appear to be chronic liars which will get them dinged when they start looking for FT jobs on Wall Street. Are you sure about that? They may be hired just because they can do that! ;D Incidentally, I think people are being a bit too hard on these three. They are just a couple of college grads who have bought into the hype of running a hedge fund and living the high life...and definitely into their own hype. How is it any different than an aspiring broker, corporate legal beagle, or even someone aiming to be the next Justin Bieber? They will most likely fizzle out and go work for a friend of their father's, but they are probably no worse than many others trying to do the same thing. They aren't corrupt...just stupid! I think all of the negative press and notoriety is probably punishment enough for their egos. Cheers!

Yes actually! ;D I know the usual brands I buy and how many sheets are on the 12-16-24 roll packs, including double rolls and MEGA size. Softness counts in the analysis too and I prefer 2 & 3 ply. I don't separate the layers and re-roll into single rolls like some people...that would be just too crazy! :o Cheers!

+1 on this. I wonder who knew about it. I guess we will never know. This is definitely not something that would have been approved by head office in my opinion. I think it happened and then head office was left to deal with the media and consequences. Instead of blowing a milion dollars, Odyssey should have petitioned state and federal governments through education and information...someone should have taken that initiative...instead of simply throwing money at any specific political party. I would not have been happy with this whether it went to Romney or Obama. Just a waste of shareholder money and I deem it something out of the operating mandate of any corporation. Cheers!

Okay, so they want to lobby congress for favourable tax treatment. Why does that cost $1 million in a single donation? And why is it not being undertaken through an industry association which is financially supported by numerous insurers who have common public policy interests? Just as Buffett has suggested that owners ought to focus on "look through earnings" I say we should also focus on "look through donations." My share of ORH's donation is far more than I would ever want to contribute to any US politician...and I do not see the prospective financial return to justify it. SJ Exactly SJ...you nailed it on the head! That's why I'm not pleased at all, and it should not happen again. Cheers!

Yeah, this is just ridiculous! A completely speculative investment in the POSSIBILITY that Romney wins and reduces tax rates. How do you justify this to the owners of the company, who are left with egg on their face and are the ones dealing with the media and fallout. What does this say about the thought process at the subsidiary...someone should be taken to task on this one. There's latitude for the subsidiaries and then there is just stupid...someone made a stupid decision at Odyssey. Cheers!

Bloomberg article on the lawsuit. Cheers! http://www.bloomberg.com/news/2012-10-05/mbia-knew-of-risks-behind-mortgages-bofa-s-countrywide-says-1-.html?cmpid=yhoo

Article on U.S. bank deposits. Cheers! http://www.snl.com/InteractiveX/Article.aspx?cdid=A-15932209-13101

Maybe Fairfax should put in a call to XL Foods and see if they need any financing or a partner. XL would be the equivalent of National Beef in Canada and supplies virtually every grocery store and retail food outlet. They also have a processing plant in Nebraska and supply some stores there too. On another note, this should be great for National Beef! Cheers! http://www.theglobeandmail.com/news/national/xl-foods-admits-its-processes-were-not-enough/article4589815/

Yes, this is very good news for Fairfax. With their partner in ICICI Lombard, they will be the largest private insurer in India. As the middle class continues to grow over the next 20-30 years, this portion of the business will become very large...probably not unlike the growth we've seen in Fairfax Asia over the last 5-6 years. Cheers!

Article on subprime mortgage bonds. Cheers! http://www.bloomberg.com/news/2012-10-04/subprime-up-as-funds-target-shrinking-market-mortgages.html?cmpid=yhoo

The thing with VIC is that you have to be invited, and you have to submit an idea. There are many people here who do not want to post but just read and lurk, so they would not be able to get into VIC. The forum is also a way for us to organize events or gatherings for board members in specific cities, such as Berkshire's AGM, Pabrai Funds AGM, and especially the Fairfax AGM where about 110-120 of our board members attended in April. I expect that number to hit closer to 170-180 at next year's dinner. Cheers!

Good article on how banks continue to be hated, while making the largest profits since the peak of the mortgage heydays. I especially love this quote...this guy is the head of PWC's financial advisory practice in New York...one of the dumbest things I've ever heard: “We may be on the verge of a new kind of banking crisis, and that’s a banking crisis where no one wants to own any banks as an investor,” said John Garvey, head of the financial- advisory practice at PricewaterhouseCoopers LLP in New York. “The future looks very dim.” http://www.bloomberg.com/news/2012-10-03/no-joy-on-wall-street-as-biggest-banks-earn-63-billion.html Cheers!

Professor Jeremy Harris Lipschultz recorded this video of Buffett at the Omaha Press Club back in 1992. Thanks to Shai for sending me the article! Cheers! http://www.huffingtonpost.com/jeremy-harris-lipschultz/analog-warren-buffett-and_b_1920959.html