Parsad

He won't get any credit here. I'm happy to give him credit. He did something that TRE's own board of directors couldn't. Doesn't mean I have to like the guy, just like I don't like Jim Chanos, Fabrice Taylor, Peter Eavis, Jim Cramer, John Hempton, Adam Sender, Steve Cohen and a bunch of other people. Do I stop people from criticizing Patrick Byrne? So, why am I going to stop people from criticizing Carson Block. Byrne rubs many people the wrong way, and there are as many who like him. Just like Block now I'm sure. I don't think either is going to care who does or doesn't give them any credit. Cheers!

Investors have not learned their lesson from 2008. Incentives for hedge funds, and the fund industry in general, are not aligned with the investor's own interests. http://www.bloomberg.com/news/2011-09-07/wealthy-investors-keep-paying-hedge-fund-fees-even-with-anemic-returns.html While it has been tougher than the alternative, I could not imagine using any other fee structure than what we have...no "1 & 20", "2 & 20", or even "4 & 25"! We don't make our partners money, we don't get paid...simple! Cheers!

For those concerned about the "too big to fail" banks, they were recently put through another rigorous stress test. Banks here are in great shape compared to most of the rest of the world. Berkowitz's comments, that this period reminds him of 1994, I believe are comparable. Cheers! http://www.cnbc.com/id/44422054

a) Not usually, but you can buy riders for that coverage or separate policies. I've been out of insurance for over 6 years, and critical illness coverage has gained considerable popularity in that time. There may be new products now. Read the contract and ask the same questions of your agent. Make sure it is all in the contract. b) Some policies do, some don't. You can usually get free coverage for that (to certain limits) through your credit card company, homeowner insurance policy, etc. The likelihood of dying through accident is relatively remote for the average person and that type of insurance is actually a moneymaker for insurance companies. You are better off just getting a good term policy that has the exact coverage you want...so it doesn't matter if your death is natural or accidental. Cheers!

Article about Fairfax investment "Mega Brands" and their comeback. CEO, Marc Bertrand, was one of the guests Prem brought to our dinner in April. http://www.theglobeandmail.com/globe-investor/investment-ideas/mega-brands-is-back-from-the-brink-but-few-are-noticing/article2155389/ Interestingly enough, the article is written by Fabrice Taylor, who wrote several negative and poorly researched articles about Fairfax between 2003 and 2006. Perhaps, he still hasn't noticed that Fairfax is also back from the brink! Cheers!

Given, be careful what you're saying, because you'll be working for Harry one day. ;D Cheers!

I thought some of the Halloween stuff out at the end of August was early, but I guess nothing beats the Christmas season rush. Cheers!

I agree, but I think "The Economic Times" was more focused on an NRI who had a very large hand in saving the institution. Cheers!

Gurufocus is conducting a phone interview with Prem on September 21st. You can submit your questions for the call. Thanks to Shai for sending me the link! Cheers! http://www.gurufocus.com/news/144607/qa-with-gurus-ceo-of-fairfax-financial-prem-watsa

a) You want to make sure that they can pay out your policy if and when it is claimed. So the stronger the better. Just remember that the credit rating agencies got it all wrong during the credit crisis, so things can change over time. b) Depends on what you need. Does your wife provide income to your household? If something happened, and you have children, how much would you need to take care of them (basic necessities, baby-sitting, nannie, college, etc)? Are there outstanding loans that your wife is responsible for, that may become your responsbility if she were to die? The same sort of questions should be asked about yourself as well. That may provide a more reasonable expectation of what your policy insured value should be. c) I don't really want to tout one insurance company over another, or one agent over another. Really it comes down to the numbers on the policy, and do they meet your needs and budget? And a decent level of long-term customer service should also be part of the sale, as you will have questions and possibly future adjustments to your insurance needs. Cheers!

New article in "The Economic Times" about Prem. Cheers! http://economictimes.indiatimes.com/news/nri/nris-in-news/prem-watsa-the-indian-who-bailed-out-bank-of-ireland/articleshow/9890516.cms

Those people are nuts! They should get their thrills watching the stock market instead. ;D Cheers!

Very good excerpt Moore! Hindsight always brings much more clarity to the goings-on of the present. Cheers!

According to this article on service jobs hiring for this Christmas season, "Christmas Creep", or the practice of putting out Christmas retail deals earlier and earlier, will start in September. A few retailers already started their sales in August! Cheers! http://www.cnbc.com/id/44410418

What "kink" places are you recommending Marcowelby?! ;D Perhaps, The Brass Rail! Cheers!

The reason the premium will stay the same is because they have essentially averaged out the rate for each year. So you are paying more in the beginning, and less in the later years, than the actual cost of the insurance. That's fine as long as you know that. For some people an annual renewable term is significantly cheaper and the way to go (especially if they are unlikely to want to carry the policy long term). Obviously to buy a level premium 30 year policy will cost you a lot more than a 15 year. Probably more than twice as much per year because of the high cost to insure those later years. You need to figure out what best fits your situation. That could get very expensive if you hold the policy more than 10 years. I've seen premiums jump several fold on some policies after a few years, while the initial premium looked relatively cheap. If you do get such a policy, make sure the renewal premium prices are not affected by any changes in health. Otherwise any future illness could dramatically affect the renewal premium prices. Cheers!

Just make sure the monthly premiums stay the same over the life of the policy. Many term policies will increase their premiums every five years. There also such things as inflation-adjustment riders, which will automatically increase your premium modestly and your policy face value by say 5 or 10%. You are better off just buying a larger policy than getting the rider. Also, compare premiums for 20, 25 and 30 year policies. Depending on your age and health, the premiums might be only modestly higher and you have insurance coverage over a longer period. You never know what can happen...disability, illness,etc...could delay your ability to generate income. If you find that over time, your personal financial situation goes as planned, and all indications are that you are probably self-insured, then you can always terminate the policy. Finally, don't get caught up in any sort of term product with an investment aspect...similar to universal or whole life, but the insurance policy is a term policy...these sort of cross-bred products have been created. Either decide if you are buying just plain term insurance for protection, or you need another product because you are trying to make your finances more efficient. Term policies are effective for 90% of consumers, whereas other products really only benefit financial planning for about 10%. Make clear what you want, because many insurance agents will try and sell you what they think you need, and the industry incentives are aligned so that they sell you something significantly greater than what would be ideal. Cheers!

In Toronto, if you like good Chinese food, you should visit Lai Wah Heen...very good. Canoe is nice, but expensive. Bymark makes a killer lobster grilled cheese sandwich...again expensive. The best Kobe beef sliders are at Trevor's Kitchen & Bar. Also a number of very good pizza places...some of the best you will find outside of New York. The one thing that has gotten better in Toronto over the last few years is their coffee. When I first started going to Toronto, I couldn't find good coffee anywhere. They had hardly any Starbucks, but plenty of Timothy's, Tim Hortons and Second Cups. Now they have very good baristas at a number of cafes. Don't waste your money on a Blue Jay's game...that ballpark is probably one of the least attractive ever built. You're much better off watching an MSL game in the open field. There are plenty of touristy things to do and see in Toronto. Don't know if you like hockey, but the Hockey Hall of Fame is in Toronto. Some great architecture in Downtown, through Yorkville, etc. They've restored several pockets of downtown Toronto and saved many heritage buildings. You'll find plenty to do and see. Cheers!

No, they aren't sending it to all of the shareholders. It was available to those that attended the AGM, and whatever copies were left, were made available to shareholders who requested a copy. Cheers!

Glad others are catching up to my concerns on Salesforce.com's pro-forma accounting practices. Cheers! http://www.theglobeandmail.com/globe-investor/investment-ideas/features/vox/the-lowdown-on-salesforces-bottom-line/article2153946/

I suspect there will be multiple such settlements and trusts for all of the various lawsuits that are out there. Banks, not unlike the tobacco companies in the last decade, will put these issues behind them through settlements. Cheers! http://www.cnbc.com/id/44403367

Moore, I'm not bashing gold, I'm bashing speculation and overvaluation. I owned gold from 2003-2004 to 2009-2010. Just like I own the same technology stocks today, that I was reeling against in 1999 and early 2000. Or financial institutions from 2006-2008, which I own in abundance now and am buying more of. Now I'm reeling againt the overvaluation in gold. I don't short because the liabilities are unlimited and the upside is limited, but if I was someone who was inclined to short overvalued and irrationally priced investments, then I would be shorting the hell out of gold right now. With CRM and OPEN down significantly (CRM still has room to go), there is nothing else I can see that I would want to go completely short on right now more than gold...nothing else! We can both make arguments till the cows come home, but I see it as clear as my hand in front of my face. Based on supply/demand, gold is over double what its price should be. It probably will go higher because there just is so much fear, but it is overvalued. And when it does correct, it won't be over a long period of time, it will be a rapid correction with many late buyers getting creamed. That's just how it works: - 12 years ago Microsoft was at $140 and dominated the computer software industry. Everyone wanted to own it. Today it's at $25, makes more money per share than ever before and has virtually no debt, yet no one really wants to own it. - 10 years ago Citigroup was at $50 and was the largest financial institution in the world. Again, everyone wanted to own it. Today at a split-adjusted $5, no one wants to own it, even though spreads on lending and deposits are the best they have been in 20 plus years. - 7 years ago, gold was at $300/oz and no one wanted to own it. People thought gold had no value left and anyone buying was a fool...I was stuffing my safety deposit box. Today, it's at a higher inflation-adjusted price than the average price in 1980 when inflation was rampant, and everyone wants to buy it because they are scared. I don't need to know about the velocity of money, quantitative-easing or fiat currency. All I need to do is apply some common sense. Cheers!

The average price of an ounce of gold in 1980 was about $1,825 inflation adjusted dollars, while the single peak price was about $2,350 in 1980. At $1,900 per ounce, gold is now higher than the average 1980 inflation-adjusted price...during a period when inflation was actually rampant! While there is elevated inflation right now, it is not running significantly greater than the historical average. And in actuality, Europe without a package, may be headed into a inflationary/deflationary spiral as the economies slowly seize to a halt and the Euro devalues. That's alot of interest in gold, during a period of relatively insignificant inflation, a possibility of deflation in certain parts of the world, and stagnant economies in Europe, the U.S. and Japan. At these prices, gold investors better be right that they expect paper money to all but disappear. Cheers!

I suspect we are getting pretty close to seeing some sort of huge European bailout package/fund being approved. The $440B package was delayed till at least October due to voting, but I think we are going to see something sooner than expected. We aren't going outside of North America (no need at our size), but European investors can probably find many things that were priced as cheap as U.S. stocks in late 2008 and early 2009. I would not be surprised to see Fairfax and Berkshire announce further large investments in Europe as well. Cheers!

Sanj, have you thought about setting up a fund like that? I would think a lot of partners would easily do something like that. If I'm not comfortable doing that with another manager, then how can I expect anyone to do it with me? Although I'm happy locking up my own money with myself! ;D Cheers!