Parsad

I'm sure there are plenty of great candidates at Berkshire, but I REALLY like both David Sokol and Ajit Jain. I think if you could get those two to run it going forward, it is very likely that they would get along great and would do an exceptional job on the operating and insurance sides. You have Bill Gates overseeing the Buffett shares through the Gates Foundation and Howard Buffett overseeing the culture as figurehead Chairman. I think that group could do a very damn fine job maintaining the reputation, results and culture. Cheers!

Rich Santulli has decided to step down from Netjets to spend more time with family and pursue other interests. He will stay on as a consultant for a year. Interestingly enough, David Sokol will take over...I suspect Sokol is the front-runner to run the operating businesses, other than insurance, when Buffett passes. Cheers! http://www.reuters.com/article/marketsNews/idINN0417370320090804?rpc=44

Richard Losch, of Losch Tabakov Capital, has some interesting tables on Berkshire on his site. Cheers! http://www.loschtabakov.com/Berkshire%20Hathaway/Financial%20Tables/20_year_financial_tables.htm

I'm guessing a bunch of hedge funds are sighing with relief from the rally in stocks over the last three months. I'm sure more will allow redemptions that had previously closed their funds. Although Mark Sellers is probably going to have to wait longer, since Contango hasn't moved that much. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=at.3HknPAnbs

You would think they would have done this a long time ago. About friggin' time. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=aoCJnYcSVhYk

That's a funny one. The other one that keeps popping up is the one with the picture of the lady in the hat...Amy Calistri...she also made a fortune in a very short period of time. The one thing that I find interesting is actually Google's ad marketing. While we do often see some ads that are of little interest, I'm actually surprised by how many I see that are more interesting and pleasant to read. No wonder they rule the online ad market. Cheers!

Folks, I don't think many of you are grasping the exact reason why Buffett and Watsa run insurance businesses. It's got nothing to do with zero cost float, and it is something that cannot occur within the hedge fund structure. Under the corporate structure, the shareholder equity is permanent capital. No en masse redemptions ever! It's the same reason Sardar is moving to the corporate holding company structure. For Berkshire and Fairfax, by writing long-tail insurance, they also create another near permanent form of capital, where they can do what they want with it for 10-15 years plus. Whether that float is zero-cost or low-cost is irrelevant, as long as the cost is less than issuing debt. Naturally, zero-cost would be preferrable though. Cheers!

We hold all our shares. That's about all I can comment on from that aspect. If you would like more information on Chanticleer, it's probably best you contact them directly at invest@chanticleerholdings.com. Mike Pruitt, Matt Miller and Joe Koster will be able to give you some more information. Basically, you have Chanticleer Holdings, which is the publically-traded holding company and the one that is trying to consummate the Hooter's transactions. And then you have subsidiary Chanticleer Advisors, which is the investment advisory business and they run an investment partnership for accredited investors. So you can get public information on Chanticleer Holdings, while you might be able to access their quarterly letters for their investment fund at Chanticleer Advisors by contacting them. Between the two, you would be able to get a better idea of their investment philosophy. Cheers!

The interest rate environment in the 1980s was such that you could still be doing great even if losing a bit on underwriting. That's correct, but combined ratios were still over 100%. Fairfax will rely on their equity investments, as well as their municipal bonds and preferred share investments since interest rates are so low. Also remember that Fairfax can always refinance their debt at lower rates as well, offsetting the low interest they would get on treasuries. They are in a much stronger position today, than they were when they issued their various long-term notes. I have no doubt whatsoever that they will continue to increase book value in today's environment. Cheers!

According to revised data, the current recession is the worst since the Great Depression. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=a5_5Vq2hV3EQ

I think the board is overreacting to the combined ratios at NB and C&F. You can't compare a company like Chubb to Northbridge or Crum & Forster. Chubb's lines of business are more diverse and they also write significant business outside of North America. A better comparison to Chubb is Fairfax's overall business, not its individual subs. Based on that, Chubb's shareholder equity has been flat for over three years. Fairfax's has doubled! Investors should also remember that insurance is a very cyclical business. There was a period from 1982-1992 where Berkshire's insurance business had nothing but combined ratios above 100% for eleven consecutive years! Today, I'm certain that any insurance analyst would agree that Berkshire has the finest group of insurance businesses in the world, and they do a splendid job of underwriting and managing expenses. Cheers!

What are you basing this on, Parsad? After talking and meeting him on numerous occasions. I've spent days with him at a time. His thinking. His positions in the past. His thoughts on markets. His temperament. His thoughts on managing investment capital. Cheers!

Updated article from the Globe & Mail on FFH's 2nd Q report. Looks like Fairfax is about to close on an insurer in China. Cheers! http://www.globeinvestor.com/servlet/story/RTGAM.20090730.wfairfaxprint0730/GIStory/#

That was, by far, the shortest Farifax conference call I've ever heard! I think there were only three questions. Prem and Greg pretty much said...made money, great shape, insurance companies are alright, investors will be happy in the future, and markets move up and down so book will too. And then probably the most uninformed analyst I've heard (I'm pretty sure he was an analyst) asked the last question on where Fairfax should trade, what does the portfolio look like presently, and is the insurance market firming. Unless something goes wrong, I think we should get used to these short conference calls. Cheers!

I know Peter very well. He's a good manager, smart guy and a terrific person. His fund is small at the present time, not unlike ours, but it will grow over time. He has personal and family capital in his fund, so he naturally takes a very cautious approach. Cheers!

Oh yeah Eric! Maybe that's what Chanos meant. I completely misunderstood the poor guy. Well, I guess we'll have to take him off the lawsuit now. ;D Cheers!

I thought this thing was a "zero"? How could the greatest shortseller in history...the man who discovered the Enron fraud...with an uncompromising "negative correlation" to the major indices...be so wrong! Phhpppphtttt! I'll leave the humility to Prem, because he's a far better man than me, but Chanos can kiss my brown a**! I know Jo Ann would have loved this post. ;D Cheers!

I'm not sure exactly who these guys are, but there seems to be a gathering for Buffett disciples in Chicago on August 28th. It seems to be sponsered by Midway Capital Research, which was an investment company started last year. From what I see on the registration info, it costs $35 for registration and any profits made will be donated to charity. Perhaps other board members are more familiar with this gathering. Cheers! http://www.buffettconclave.com/ http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/07-30-2009/0005069194&EDATE=

I think the board hit it dead on with a $50-60 change in book value. Good stuff guys! Cheers!

CNBC article on Buffett's investment in BYD. Cheers! http://www.cnbc.com/id/32217969

After reading the post below by SharperDingaan, I thought this would be a very interesting and useful topic. I manage the family investments as a sideline, & am training 2 nephews in the darkarts of finance - hence the 'we'. Part of their training is that they can each make a BS/PL 'dance', & that they each have to present a new idea on the back of an envelope every quarter-end. If it survives the 20 questions, we put real money on it (a very small allocation from the main portfolio) They're at the table whenever the major decisions are made, & are there to ask questions & learn by osmosis. Once/year they have to present a business plan to a small businessman, buy some inventory, & then help in selling it through his/her store (preferably something edible in case they screw up) Real life experience, with 20% of their gross going to charity and another 20% going to travel. Taxation. They also read this board as well So what do you all do to teach family, children, friends or the general public about finance and business? Cheers!

That's awesome Sharper! What a terrific thing for them to learn while young. I especially like the presenting a businessplan idea and then actually putting it into effect...great stuff! On that subject, I'll start a thread on how people teach their family about money. Cheers!

With $40M in deposits waiting for future flights, Branson's SpaceShipOne has raised $280M to launch testflights. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=aNsbAEBcbqxA

I thought this article was funny. It seems as though municipalities and states are coming up with innovative ways to finance their budget deficits. A bill was proposed to tax marijuana...it was tabled for a later date. Oakland has actually already started taxing medical marijuana. Finally, a stripper "pole" tax of $5 per patron is being instituted. Dig yourself into a hole and it's ok to straddle moral lines to get yourself out...that's how the government works my friends! Cheers! http://www.cnn.com/2009/POLITICS/07/28/states.budget.crunch/index.html

I have yet to meet any individual who has used a screen successfully for years and done extraordinarily well. It takes more than a quantitative approach. Cheers!