Parsad

Did pop to a record $971 CDN today, but then dropped back down. Cheers!

Should note also that the notional amount is $3B compared to a bond portfolio of $32B...so the actual short position is about $300M or so...1% of the total bond portfolio. That's in significant contrast to what their short positions in equities were like in the past. Cheers!

Hopefully not! May have to kick some ass to get people to stop posting that stuff. Cheers!

Nice analysis Viking! Cheers!

Hi Folks, We had the Politics Forum because of all the crap that was spilling into the Investment Forum, but things have calmed down dramatically since Trump has been out of office. I think we can get rid of it now. It will be removed in the next little while. Thanks! Sanjeev

https://finance.yahoo.com/news/charlie-munger-pockets-70-000-185148690.html Cheers!

+1! Very true. Another good example is Rose Blumkin, who founded Nebraska Furniture Mart. We all know the story of how after BRK bought NFM from Rose, her kids who were running the store decided to retire her. She went and started a competing carpet store next to NFM at age 95 and began outselling NFM. Buffett had to approach her at the request of NFM and buy out the carpet store, having her sign a non-compete agreement at age 97. Mrs. Blumkin lived for a few more years, but she was a bit heartbroken not to be working anymore. Everything in her house still had little sales tags on them, so she felt like she was still in the store each day. Cheers!

Book is now at $803 USD...should be trading at $1,050 CDN per share at the least. With a steady $1.5B in interest and dividends coming in, P/B should move into the 1-1.2 times range this year. Prem may see the $1,000 USD price per share he predicted a couple of years ago. Cheers!

Just killed it this quarter! Cheers!

+1! I'm going to be 54 in July. Working on it...I would hate COBF to end after I do! Cheers!

Anyone looking at different opportunities to take advantage of the fear permeating markets around a U.S. debt default. This seems to be almost a guaranteed short-term opportunity here to take advantage of the market's pessimism. For example, short-term U.S. treasuries are at unusually high yields and will drop once the debt limit is increased. CDS on U.S. debt are trading above some emerging market debt CDS. Any ideas? Cheers!

MKL had a much higher valuation a long time ago, so nothing new. It was an excellent insurance company under Steve and Tom. Now that Steve is gone, maybe there's too much on Tom's plate, and he hasn't had as much time focusing solely on investments. Regardless, even solely under Tom, it still has a pretty consistent CR and ROE over every time period...thus the confident valuation by the market. And again, this comes back to less leverage, a diversified book of short-tail, long-tail, general and specialty insurance, and a steady three legged stool approach of insurance income, investment income and non-insurance operating income. Cheers!

Markel Ventures I think suffers from a similar problem as FFH's wholly-owned businesses...they just aren't top tier companies! Berkshire generally bought huge, cash flow businesses with competitive advantages that were generally #1,2 or 3 in their industry. While maybe a notch above Fairfax's non-insurance businesses, MV's businesses aren't exactly lighting a fire! Cheers!

Markel's results were excellent when Steve Markel was CEO and Tom Gaynor was CIO. In the last decade, they've struggled a bit under Gaynor, but I suspect that had more to do with the environment for value investing than anything else. Let's see what Gaynor does the next decade. Cheers!

20 years ago, I was asking that question. Prem was pretty close...at that time Steve Markel in tandem with Tom Gaynor was close...Seth Klarman was up right up there...I thought Sardar might have been one...and then there were dozens of pretenders as well. Yet, as time went by it became apparent that no one was as consistent as Buffett, and spoke with such clarity about investing and life in general. Once you combine the ethics...there is no replacement or next one. That's what I came to realize. They actually broke the mold after Buffett! Cheers!

You guys have to remember that Fairfax writes far more long-tail insurance than WRB or MKL...thus the higher volatility and CR's. But long-tail insurance business has the benefit of long-term float. By writing more long-tail business, Fairfax benefits from the winds when insurance pricing is good, but gets hit harder when you do have a massive catastrophe year. Over the last few years, by acquiring Allied and changing up their business a bit, FFH has become a little more diversified...but they still remain a long-tail insurance company. Is FFH underpriced compared to WRB and MKL...yes. But should it trade at the premiums those two trade at compared to FFH...not yet. FFH should trade at 1.2-1.3 times book. The more diversified and consistent they become...the higher you can increase that price to book valuation. All that being said, there is nothing wrong with owning some MKL, some WRB and lots of FFH. You then don't have to worry about how FFH compares, but simply enjoy the ride while benefiting from the other two quality insurers as well. Throw some BRK in there too, since that should be carrying the highest price to book of any of them...and it isn't right now! Cheers!

The CNBC interview in Munger's backyard was from last year, not this year. Munger in particular looked more fragile than last year at the AGM. Cheers!

Sold all my SHOP call options over the last week...almost exactly a 200% gain in 6 months. Cheers!

No, not because my Golden State Warriors are down 3-1 to the Los Angeles Lakers in the playoffs! After watching this year's BRK AGM, I thoroughly enjoyed myself, once again learning little bits and pieces even after 25 years since reading my first BRK Letter to Shareholders. At the same time, the days afterward left me very sad. Why? Because two of my heroes looked the most fragile that I've seen in those same 25 years. My grandmother died last year at nearly 97. My father died when I was 21. We lost several older family members during two years of the pandemic. Many of the closest people to me, who have known me my whole life are now gone. Really, only my mother is the only one left at 72. Loss is something I've grown accustomed to, as well as how finite life is. What are all of us going to do when Warren and Charlie are gone? It's like chocolate and ice cream disappearing from the face of the Earth. An indulgence that investors have enjoyed for so long, so satisfying, and irreplaceable! Berkshire will be fine, and we'll still have Watsa, Gundlach, Gaynor, Klarman and others. But none of them have the same level of clarity as either Buffett or Munger. Sadly, we may have to bumble our way through. So yes, I'm grateful for the time we've had them around us, but I also know that soon will come a day that I will wish we had more time! Thank you Warren & Charlie! The best teachers I've ever had. Cheers!

China total debt to GDP hits nearly 280%! Cheers! https://finance.yahoo.com/news/china-debt-gdp-ratio-rises-042544479.html

Another gem from Munger when asked about practicing law. "I don't think I have a lot of advice on how to succeed in law. I have a son-in-law who works at a modern law practice at a big firm, he says "it's like a pie eating contest where the winner gets to eat more pie!" "And I advise you to avoid that kind of a law firm. Life is too short but to do nothing but eat pie!" Cheers!

Their comments on Elon Musk were priceless and classic Buffett & Munger! I couldn't stop laughing. "We don't want to compete with Elon!" - Buffett "We don't want to go through so much failure!" - Munger Cheers!

No, you can shop directly online or by phone. I've been shopping there for years...mainly BRK memorabilia stuff. Cheers!

A couple of months ago, I sold out of BAC after holding it from 2009. I just couldn't predict the different outlier events that could happen and who was holding what bag. If BRK didn't originate that deal, I doubt Buffett would have held on to BAC...even as terrific a CEO Brian Moynihan is. The industry does well when things are good, but are probably the worst businesses to own when things turn bad. With their leverage, and the stupid things bankers will do, they may actually be one of the riskiest areas to invest long-term, because they will get hit at some point from dumb behavior. And even if you avoided the stupid behaviors of your peers, you will suffer collateral damage for some time from fear. Cheers!

They are essentially out of banks other than BAC, which as GFP said was because they originated that deal and want to remain a reliable partner. Buffett said there could be 3rd or 4th levels of counterparty risk that lead to unpredictable things and the average U.S. citizen doesn't understand banking or how bank deposits are insured. I suspect they expect things to get worse before they get better. On another note, there was a young 13 year old girl who asked a question about US debt and the U.S. dollar. She was extremely poised and eloquent. Maybe Berkshire should hire her or the FDIC should put her in charge of some banks! Cheers!