Parsad

Mark Mitchell writes a sarcastic, yet very indicative story on David Einhorn. I'm sure there are people on both sides of the fence when it comes to Einhorn, especially after his book came out, but the relationships and playbook are remarkably familiar. Anyone who owned Fairfax or Overstock shares over the last 6-7 years can call out what each step of the game would be. There were days when we knew exactly what was going to be in the press, because some idiot would write it anonymously on the old MSN message board. We knew that would be the next story by Peter Eavis, or another analyst report would come out from John Gwynn. Today we know that Gwynn was corrupt and frontrunning his reports. Cheers! http://www.deepcapture.com/notes-on-david-einhorn-the-predator-in-a-cute-t-shirt/

Based on all the stuff Alice Schroeder wrote about Buffett's mother, I'm guessing he was adopted and this was his birth mother! What a fantastic lady! Cheers!

At the end of the day, I don't think that he is the type of guy that would sandbag shareholders over compensation. Perhaps, but we are officially out after today...we don't own a single share in the funds, our corporate accounts, or our personal accounts. Long-term gains rates have kicked in, there are other opportunities available, and the stock was around $309. We made plenty of money for our partners and ourselves, but money isn't everything...you are only as good as your word, and when you take a $900K salary and then tell partners you are there to make money with them and not off of them, well...you've got to back that up! And then how do you explain to your executives that their efforts are as valuable as yours, when they don't share the pot? You are creating a culture where there will be turnover in the corporate offices. At the Lion Fund, Sardar was the man. At Biglari Holdings, there are quite a few other people who are instrumental in running the business. Cheers!

And once again Vancouver loses to the team that goes on to win the Stanley Cup! We've got a friggin' drought here in Vancouver too you know! At least Philly lost. ;D Cheers!

He needs the time to prepare his defense! Fairfax's case is coming up...SEC is digging deeply...tides have turned against the naked short-selling, front-running, insider-trading crowd. Cheers!

It's funny how such stupid things get written about investing. After all these years of reading these ridiculous things, I continue to be amazed how readily it is written! http://finance.yahoo.com/news/Are-Stocks-Near-Bear-Market-cnbc-2857948061.html;_ylt=AtMkf_J2qN6OID77fnR8_hO7YWsA;_ylu=X3oDMTE5ajdtdWs0BHBvcwM0BHNlYwN0b3BTdG9yaWVzQ29rZQRzbGsDYXJld2VuZWFyYmVh?x=0&.v=1&sec=topStories&pos=2&asset=7cadc69438b0468ecb3beafb6413a7fd&ccode=rd What's also so amusing is how David Rosenberg can write such great articles at times, but then say the dumbest things in the world. I've decided that I will now use the word "Fibonacci" as my preferred curse word. If someone cuts me off while driving...Fibonacci! If I run into Herb Greenberg...you damn sweaty Fibonacci! If I see Jim Chanos...you dirty Fibonacci! Or I see Abby Joseph Cohen on tv again talking about how the S&P will hit 1,900 by year-end...you crazy Fibonacci! It's completely universal. Cheers!

Hi Folks, The site was down temporarily, but it has been fixed. According to my internet service provider, there was a vulnerability in the PHP scripting code that the site runs on, and a malicious code was inserted directly into the files. It wasn't only our site, but thousands of sites that were under attack due to the weakness in PHP itself. The malicious code itself doesn't do any harm to your computers, but only redirects the user. The code was removed by my ISP, and the system is fine. If you feel unsure, then I would suggest that users run their normal anti-virus scans, but there was no virus present. Thanks very much! Sanjeev

I wouldn't discount the value of a full-service broker. It's the individual who makes the difference, not the category. We use full-service brokers for both of our funds. They provide back-end office support when cutting checks, wiring funds, client contact and service provider contact. We never ask them to print out 10-Q's or 10-K's for us...that is a complete waste of paper, their time, our time, and mailing costs. You can easily find them on EDGAR for US filings, or SEDAR for Canadian filings. If someone is too lazy to do that, then they should probably just invest in an ETF or something. You are also paying alot for your full-service broker. We don't pay nearly that amount, and in our U.S. fund, we pay a fraction of your cost for a trade. The benefit of a full-service broker for us isn't in the advice...we don't require it. The benefit for us is when it comes to working very specific trades of small-cap or micro-cap stocks. In these circumstances, the bid/ask can move very quickly, especially over several days or months when you are working a trade over a long period of time. The broker needs to pay attention to these moves so they can acquire us shares opportunistically. Discount brokers cannot do this, and it is worth its weight in gold if you find the right broker. I think your broker was correct in refusing to print out the materials, but I think you should fire him solely based on cost for trades. If you don't invest in very small-cap, somewhat illiquid stocks, then you are probably best off with a discount broker. Cheers!

Gabelli's pockets are very, very deep. He's already paid more for the shares than what they are trading at, so if he wants to buy more, he could certainly do so with little problem. I think he will just take a wait and see approach to the vote. If it gets voted down, fine then Sardar gets his $900K salary and continues to run the business...no headache in finding a replacement, nor a proxy fight. If the compensation plan goes through, then I'm pretty sure you will see a proxy fight...be it with Gabelli or someone else. Cheers!

I bet SB has resigned within a couple of weeks. No way in hell he resigns! He will fight it to the end...and it would take an expensive proxy fight to remove him. There is a very valuable franchise there that is in fantastic shape now...in no small part to Sardar's work. But someone with deep pockets could come in and run against him, which is where I think this thing is headed. The irony of that should not be lost on anyone. Executives need to make good choices for shareholders, not themselves! Cheers!

Yup, it will be on the Tuesday night next year. I'll have to figure out what to do about where we hold it. That room was at capacity this year, and while we could open it up to the other room, the kitchen noise would be distracting. Around September, I'll start to get quotes for other venues in the area and what is available, then compare it to Joe Badali's room. It worked perfectly this year, but we would have to limit the total number of attendees at 70...which is capacity for that room and exactly the turn out this year. Cheers!

Biglari Holdings has terminated the exchange offer. Cheers! http://www.tradingmarkets.com/news/press-release/aap_bh_biglari-holdings-inc-terminates-exchange-offer-for-shares-of-advance-auto-parts-inc--966448.html

They would have to buy up a hell of a lot more shares than they currently own. I think you will now see other people come out to vote against the compensation package. The class-action risk is also pretty significant now with Sardar buying back shares at a lower price than when Biglari Capital was sold to BH. Cheers!

Greg Taylor, CFO at Fairfax, is rotating after five years to Hamblin-Watsa. John Varnell is rotating back to CFO of Fairfax. I thought Greg did an absolutely fantastic job of communicating information to shareholders during the conference calls! Good luck to him at Hamblin-Watsa, and it's great to see another terrific Fairfax executive back in the CFO role he inhabited previously! That's one superb team there! Cheers! http://www.fairfax.ca/Assets/Downloads/Press/fpr2010-06-04.pdf

We're finding some good stuff. It's not dirt cheap like March 2008, but we are starting to see some bargains here and there. We were 50% cash about three weeks ago, and now we are down to about 30%. Cheers!

If some of you have ever wondered why Fairfax's combined ratios seem a bit more elevated than their competitors, now you know why. There is no fudging of the reserves at Berkshire, Fairfax or Markel. The set their reserves higher than most of the competition. Cheers!

Welcome Opihiman2! Enjoy the board. We also have another Opihiman registered, as well as other boardmembers from the Hawaiian Islands. Cheers!

Hi Viking, I think the defining characteristic is that investors were willing to pay obscene amounts for businesses in the past, thus you have many companies where the valuation tread sideways for years. In the meantime, these businesses have doubled, tripled or quadrupled their earnings, maintained or grown their market share, and continue to exist as dominant players in their industry. I think if you are looking at a broad spectrum of the market, then you have better valuations within many of the premium players, when compared to some of the valuations you see in the small to mid-cap spectrum. That being said, buy what you think is cheap and then sell it when it is dear. Most investors weren't willing to do that over the last ten years. Cheers!

I think it's like his comments about alot of other things such as derivatives...do as I say, not as I do! The stuff he buys or writes is based on his assessment, thus he thinks there is enough safety in the premiums. But the stuff alot of other people buy or insure...well that's another subject all together, and often there isn't enough due diligence. Cheers!

I wouldn't worry about the FFH muni-bonds. They're insured by Berkshire! ;D Cheers!

Use this free JPM screening service: http://www.adr.com/Home/Home.aspx Cheers!

Short, but good article, on Buffett's views on municipal debt. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=airOwCWviFuU&pos=2

I'm not sure why it gets so complicated. I'll tell you actually which one I like right now. Goodwood Funds management fee for running the investments of Westaim. They get 0.1667% plus 15% above a 10% hurdle! So on $350M in equity, they would get about $580K plus 15% above a 10% hurdle. Simple, high hurdle and lower incentive fee...their MER is very low. They own 19% of the company too! Sardar should have done something very similar...he could have gone for 0.25% plus 15% above a 10% hurdle. I think most shareholders would have agreed to that. Cheers!

It's run by Garry Schwartz. His wife is Heather Riesman who owns Indigo Books. Onex would be comparable to Blackstone or some other large private equity firm. They've done well over the years and Schwartz has a huge committee that helps him run all the businesses. They've expanded their investment fund business heavily over the last few years. Cheers!

Hey I agree with you...cheaper is always better! ;D Cheers!