Parsad

This reminds me too much of the whole Jerry Yang incident witht the Yahoo/Microsoft deal. Yang looks stupid now as Google and Bing are eating up their market share. Cadbury's board is silly in not working with this deal and Kraft would be silly to pay up. Cheers!

That's a natural progression I would imagine...surprised that it is being adapted so quickly...India truly is changing. Should help increase their footprint even more. Cheers!

I actually dont think that is that bad. Most large companies have "art" and other interior design features that would cost just as much. If you put an antique map on the wall, then you don't have to put a painting. Further, the art/painting isn't "necessary" shareholder spending, but for a company that size that can benefit from having a corporate headquarters that isn't just walls and paint. A better looking atmosphere will increase employee attitudes and not turn of clients/outsiders when they come for meetings. Plus, they will probably be used for 50+ years. $12 million/50 years $240k/year, which is a rounding error to a company with 647 shares outstanding. In addition, CHK probably didn't get a bad deal; I know their CEO had huge financial problems (I think he margined his stock & was forced to sell during crisis). He was probably in a position where he had to sell. Sorry Watsa, I have to disagree with you here. Other than Fairfax's foyer area and the boardroom, there really isn't much to look at in their office, yet employee moral is terrific and clients want to deal with Fairfax. Even the foyer and boardroom don't have any real significant art or anything, other than a bust of Sir John Templeton and framed historical checks and share issues by Fairfax. Pretty plain jane for a company with $30B in assets and an $8B market cap. I think employee moral is best when employees are given respect, treated as equals and have a working environment where they feel productive and needed. Fancy offices and lobbies are as fleeting as that $1500 Louis Vuitton suitcase or a Rolex watch. I remember going on a tour of the CN Tower a few years back, and the tourguide was telling us how the Royal Bank building's windows looked gold colored, because there were real flecks of gold included in the production process of the window glass. I nearly vomitted thinking about that and exactly how ostentatious that is. You are correct that for many people, an artifice building or guilded lobby provide some comfort, because they feel that their money is more secure for some reason...thus the fancy buildings most banks and insurance companies built over the last 120 years in North America. But that probably attracts the wrong type of shareholder, employee or customer into the office. Cheers!

Hi Shalab, It was partly U.S. purchasers, but the bulk was coming from other parts of Canada (in particular Alberta & Saskatchewan), as well as quite a few European and Asian buyers. At one point back then, it took 70% of the average household income to service the average home in Vancouver...mortgage, interest, property taxes, maintenance. That number has not changed much in the last two-three years. I thought we were in a bubble three years ago and I still think we're in one now, but alot of people disagree or come up with reasons why it isn't...net migration into the city, desireability, lack of inventory, lack of land or qualified sites near the city, waterfront land is built out, etc. People always have an answer why something isn't in a bubble, until the pin prick hits and then suddenly everyone saw it coming. Right now, no one sees anything coming. Incidentally, there was a fairly recent penthouse sale in our downtown area for $15M for 6000 sq feet on the 43rd floor of a new building...and that isn't raising any eyebrows! There's a house in a very nice area not far from where I live in one of Vancouver's suburbs. A very nice house on about 1.5 acres of land...they are asking $19M! The house was built for $6M a little over ten years ago! That area while being quite nice, isn't even close to Vancouver's nicest areas. I can only imagine some of the listing prices those homes would fetch. Cheers!

Bloomberg article on the use of checklists by Mohnish and Atul Gawande's book. Cheers! http://www.bloomberg.com/apps/news?pid=20601088&sid=a88b_yggIXDc

For those that have read "The Snowball", Buffett's experience as a director at Coke was most unpleasant. Fortunately, this time he's not a director and can freely say what's on his mind. Cheers!

At least they're only paying 7%! Cheers!

Looks like some of us were bang on $10 US /Share Payable Jan 26 When aren't you guys right! Many of you know the company as well as Fairfax's management...hell, some of you called the acquisition of ORH well before anyone else got wind, especially the media. I still think they were going to pay out $13 Smazz, but when they read some of your guys posts, Prem got scared and changed it to $10. ;D Cheers!

He's dead on, and you would think the Kraft board would take heed. Cheers!

I think one of the things that we forget about the dividend is that it is a form of compensation for many of the managers, including Prem. As most have fixed salaries, with limited bonuses and no options or stock grants, the dividend is their primary form of compensation for a job well done. While it isn't very tax-efficient, it's a much better alternative to the managers selling any stock they own. As well, for many managers, Fairfax is their largest asset outside of their home, and the dividend over time allows them to diversify a bit as the stock price continues to go up. Cheers!

I have no idea exactly how the market will do in the future, but I think the next decade will be fine as we've experienced a decade with no gain. Expect more modest growth and corporate profits though. Cheers!

I think they'll almost double the dividend this year...probably $13-15/share and about a 3.25-3.5% yield. They've got some pretty regular income now from their muni portfolio and dividend paying stocks. They've got ample cash, everything is in-house and now 100%-owned, and they've got no run-off expenses going forward. They'll also probably dividend up excess surplus from ORH on an annual basis, and they're listing costs for Northbridge and Odyssey have been eliminated. I'm guessing G&A going forward will be a little less also, since they have lower legal costs from the SEC business being resolved. Cheers!

Article by Whitney Tilson and John Heins. As I've said before, I don't think we will see hyperinflation. I think once the stimulus is removed at some point, things will be precarious and subdued...stagflation is more likely...elevated inflation with slow growth. We have all the hallmarks - elevated oil and commodity prices, fragile economy, high unemployment, protectionist behavior, government printing money...it's a "damned if you do, damned if you don't" scenario for any administration. Cheers! http://www.washingtonpost.com/wp-dyn/content/article/2009/12/31/AR2009123103282_pf.html

This is getting interesting! Cheers!

Curtis Jensen, Marty Whitman's protege, will take over the helm at Third Avenue. Cheers! http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&data-ipsquote-timestamp=20100104&id=10953858

Good Bloomberg article on the last decade in U.S. equities. Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=azRby9JhxPH0&pos=1

I would say that the other call up there for "call of the decade", should be Buffett & Munger's warnings on derivatives as early as 2002. Cheers!

Apparently, Goldman Sachs call to buy BRIC economies was the call of the decade, but I would put either Prem's or Paulsen's call on the mortgage industry the call of the decade. Cheers! http://www.bloomberg.com/apps/news?pid=20601109&sid=adQVT5VaMAiE&pos=15

And those investments helped the John Wood's ministry: http://johnwoodsministries.org/ Yikes! Cheers!

Oh, here we go...found their own description of these investments: http://www.lifepartnersinc.com/about/community.html Cheers!

LOL! You're effing kidding me! Wow...red flag galore. Cheers!

I have no interest in this company, but Harry's question intrigued me. I can't find any real disclosure for "Artifacts/Other" going back as far as 2003. Back in 2003, it was only valued at $87K, but today it's $871K! What do they have back there Harry? I tried calling Investor Relations but the office is closed for the holidays. Do they have troy ounces of gold, or a lock of Elvis' hair? Or is this a mysterious asset that doesn't really exist? Cheers!

Hi Harry, Are you talking about their recently formed Life Settlement LP that they are offering as an exempt security to the general public? That they are attempting to add the LP as an alternative investment class to equities, bonds or commodities? Cheers!

Possibly, but I'd put my money on them going to trial. I don't think this is just an attempt at a moral victory for Prem...it's all about reputation, and he will want alot of what happened to go on the record and be out in the public. Cheers!

Story about Eric Sprott, who continues to remain extremely bearish...certainly far more than myself. ;D Cheers! http://www.bloomberg.com/apps/news?pid=20601087&sid=aa85k1XdhVlg&pos=5