Parsad

From what I remember, their cost basis for each produced item was already on par or less than conventionally used packaging. So in essence, if the companies they sell their machines to can utilize them with some scale, then they would not only be environmentally-friendly, but their existing costs for conventional packaging would decrease. One example was that their present cost for producing an environmentally-friendly lid for coffee cups (Starbucks, McDonalds, etc.) would be about five cents each. Now if McDonalds or Starbucks could produce those lids in scale, by buying cellulose-based materials in quantity, then it could feasibly come down to 3 cents a lid or so. I know they've sold two machines in the past, and they had raised about $20-30M, but not sure what Fairfax's long-term idea is. Could be Prem was looking for a nice yield again, and whether it's $5M, $50M or $500M, that is money put to work. Cheers!

Maybe, but not sure. From what I remember, I think they were sugar and cellulose based. Maybe the website has more details on the containers. Cheers!

Hey I met with these guys about a year ago. They were looking at financing their expansion and we were offered a buy in. Not our kind of business, as it doesn't really have alot of long-term competitive advantages. There are other much larger companies that already offer biodegradeable packaging. Their office is right behind ours and across from Tim McElvaine's. If I knew Prem was looking for these types of businesses, I would have told him about them. It's a new form of packaging, and they've got interest from McDonalds and alot of other companies. At that time, they were testing their products with these different companies. The containers are solid and work, but definitely not something we were going to put MPIC's money in. Perhaps, McDonalds testing has paid off and they've put in an order for the machines. That would be a deal worth tens of millions long-term in North America alone! Cheers!

Great notes Alex! Thanks very much and welcome to the board. Cheers!

...in Ralph Nader's new book! Cheers! http://www.cnbc.com/id/33019473

It is believed that 22 European banks have combined credit losses of $580B US! Cheers! http://www.cnbc.com/id/33030450

This Reuter's article from June had Canada pegged at 33% and that's after the large fiscal deficit from all the stimulus spending this year. Cheers! http://www.reuters.com/article/companyNewsAndPR/idUSN1151927220090611

Yeah, I keep hearing this also in the news, yet I'm not sure what comparisons they are using? I think they are including provincial debt, as well as social security. Based on simple federal debt to GDP, Canada has done a terrific job, both through the Liberal Government from the Chretien era and the Conservative Government under Steven Harper, and that ratio is far lower than the U.S. Infact, I believe it is one of the lowest numbers of any G20 economy. So, I'm also at a loss at exactly what numbers people are using when they say Canada's debt burden is as onerous as the U.S. Cheers!

Thanks Netnet and Grenville. Cheers!

Hi Netnet, You forgot the link. Cheers!

Article on the Goldman investment Berkshire made one year ago. Cheers! http://www.cnbc.com/id/32982928

Hi Folks, Unfortunately, as we work our way through this process with management, all future discussions on ITEX will be removed from this board. Our group is the beneficial owner of 12% of ITEX, and as owner of this message board, we do not want to ever be viewed as a large shareholder wielding undue influence. Investors are more than welcome to discuss this company elsewhere, but unfortunately it will have to be excluded from here. Perhaps, Farnamstreet can facilitate your discussions on this matter. Thanks very much! Cheers!

does anyone know how much of Mr. Watsa net work is in Fairfax financial? Over 90%. Cheers!

California unemployment at 12% is the highest in nearly 70 years. Remember, this does not include people whose hours have been cut, or those that have fallen off the actively seeking employment rolls. House prices and unemployment need to stabilize there...as California goes, so does most of the U.S. Cheers! http://www.nytimes.com/2009/09/19/us/19calif.html?hpw

As many of us suggested here, Fairfax has upped their offer to $65, and I think this will be accepted by the shareholders. Cheers! http://www.marketwatch.com/story/fairfax-to-commence-tender-offer-for-minority-stake-in-odyssey-re-for-65-per-share-in-cash-2009-09-18

Up from 29 in July. Also 12 states now have 10% or greater unemployment, with five above 12%. Cheers! http://finance.yahoo.com/news/42-states-lose-jobs-in-August-apf-1171568305.html;_ylt=AvepGKi88X6XucfhRRKzkoi7YWsA;_ylu=X3oDMTE1Yms0aGwwBHBvcwMzBHNlYwN0b3BTdG9yaWVzBHNsawM1c3RhdGVzc2Vlam8-?x=0&.v=3&sec=topStories&pos=1&asset=&ccode=

I'm sure some of the criticism is fair. A couple of points he didn't make. - He commented on shares increasing, but did not note the growth in book value and investments per share, or for that matter earnings. All grew significantly faster than the growth in shares. - Yes, the company did face a situation that was very precarious back in 2003, but errors in judgement happen. Today the company is in better shape than ever. - Only a handful of people around the world would have been able to turn this ship around when it began floundering in 2003. Prem deserves to be recognized in the category of great insurance executives, along with the likes of Warren Buffett. Cheers!

Another interview with Buffett: http://money.cnn.com/video/fortune/2009/09/15/f_mpw_buffett_recession.fortune/ Cheers!

Interesting, but short, interview with Becky Quick, where Buffett discusses some of the calls he received that weekend one year ago. Part two is available tomorrow. Cheers! http://www.cnbc.com/id/32867249

Mdhousa, Your criticisms seem valid, or at least sound valid. The problem is, that if an investment manager utters one thing, then investors view it as fact. There is no room for modification, editing, context or even evolution of the idea...the manager said it, therefore it is a fixed idea. I have one investment partner who will absolutely fixate on one comment and act on it. I don’t know how many times I’ve had to corral his impulses, and his family knows that too, but he has a heart of gold and I’ve learned to deal with this. For example, you went and made a post, now some other fellow can come over to it and critique your comments, and it doesn't matter the context of what you said, or perhaps you didn't even complete your thought or discussion on the matter. - you said you were considering investing with Mohnish, yet you say that he is doing a lot of handwaving and is now swimming naked - you attended the meeting, yet you didn't ask him all the same questions you just discussed with the board - you listened to him tell a story about Munger, but did not ask any questions at that point You obviously have explanations for the three points above, and it isn't fair if I jump to a conclusion is it? Buffett talks about derivatives being weapons of mass destruction, yet he went and invested Berkshire in them. How many investors suggested that was hypocrtical? And it probably was in most respects. I don’t agree with a few of Mohnish’s ideas…for example, I absolutely believe in concentrated positions…ten or less…even if managing other people’s money. I think magic formula investing is akin to an investor looking at P/E, P/B and some other metric, and thinking they’ve necessarily got something here…phhhppphhttt! I use a mental checklist, and don’t do written ones…I probably never will. But these are my personality flaws or perhaps benefits…I don’t know yet!  An investment manager has to manage capital in the best interest of their partners. There are certain restrictions in the way they can operate and things that they can do, and that has to be counterbalanced with the emotional constitution of their partners. Mohnish suffered a tremendous loss last year, and that will automatically make an investment manager look for new and better ideas. That is Mohnish’s evolution as a manager. Some things may seem hypocritical today, because he believed them yesterday. And some of the current ideas may evolve again in the future. That is the business, that is learning, and that is making mistakes and earning your stripes. The end result is that he lost a fortune last year, and he’s made a fortune this year. The question is, where will Mohnish be relative to the indices ten years out. I’m betting he’ll do better than them, but not nearly as well as in the first ten years…simply because of size and more diversification. Cheers!

I got in from Chicago at 3am last night and am sick from all the air conditioning. I had a late breakfast, so I think that's what did it. Cheers!

Hi Sreenr, Basically, Mohnish was saying that the value of certain investments like the S&P puts contracts will not be known for many years, thus that is a question mark. So when you are doing intrinsic value calculations, make sure you are very conservative in your estimates, as that remains an underlying risk. I think everyone assumes that it will work out ok, but to protect yourself as an investor, you need a signficant margin of safety. Cheers!

Mohnish was very funny! I told him in another life he was either a very well-liked professor or a stand-up comedian, as his ability to transfer knowledge with terrific analogies and humor is very good. A few things he said: - They are net sellers of stocks presently, and he feels retail and consumer spending will be tough for a few years. - Pabrai funds have done over 100% this year, but have a bit more to do to get back up to the peak levels. - On the question of how to raise capital for a fund: You have to convince your partners that it is their sole purpose in life to raise money for you! I was cracking up laughing after hearing that one. - On a question regarding one of his mistakes...I believe Compucredit: I was stupid! Again the audience roared in laughter. - As dcollon mentioned, checklists have become important to the Pabrai Funds...but they don't decide on an investment. They just give an overview of how deficient or acceptable the idea is. - On the idea of a less concentrated portfolio when he brought it up with Munger, who interrupted him and said: You are going in the complete opposite direction of my thought process on this matter. He said Munger accepted his proposal once he explained that it was because he was managing other people's capital, rather than his own money. - Mohnish experiments with strategies in his own portfolio. - Believes Berkshire’s value should be calculated in the most conservative manner possible at this point, as the range has widened significantly due to the long-term and incalculable investments Buffett has made recently…primarily the derivatives bets. Anyone who has read “The Snowball” knows that one of Buffett’s strongest characteristics is his ability to make others feel better about themselves. Mohnish seems to be learning this little philosophy, because regardless of the questions asked, he always made the individual feel as though that question was the best one asked yet. His presentation skills have become incredibly polished, as is his delivery. He also recalls name after name of people coming up to him without having to look at their nametags. Pretty impressive stuff considering how many people he meets these days all over the world! Even Mohnish’s wife Harina remarkably keeps up with all the names and faces, and greets everyone so warmly with great interest. The atmosphere at Carlucci’s is very intimate, so it is easier to move from table to table than say the meeting in California which is in a gigantic ballroom. About 200 people or so came to the Chicago meeting, whereas California has around 300-350 people attend. We had about 15 people or so show up to the lounge before the meeting, and it was nice to meet them all. I really enjoyed my brief time in Chicago…beautiful architecture, restaurants, people, sights…very nice! Plus I hit three Steak’n Shakes in 48 hours! Cheers!

It's great to own the market, but I like businesses that actually make money. Hopefully Sokol gets this thing making a regular profit one day. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=aAEFzKSadxTg

Meeting isn't till tonight. We'll let you know tomorrow or Monday. Cheers!