biaggio

That's kind of ironic? If we go over the brink---They will probably sell (and buy equity? Which makes the most sense to me. As has been said here it is better to on a great business long term than cash). interest rates will go up.

woodstove, agree with your post. Hope to add to BRK.B as well

it seems to me ,short term that too many people hate the US dollar. I am buying US dollar stock. Who knows, short term anything can happen. There seems to be a lot of cash being held (which includes myself) which makes me think that this is not a good position either.

Thanks for posting. I am happy holding FFH. I like them buying in distressed markets.(certainly not something the average person like myself could be involved with otherwise) They appear to be in good company on this deal as well.

Who has adjusted their cash position with recent debt ceiling/budget problem? How much your portfolio is cash now? I am still ~ 40%, because of cash added to be invested over the last several months-I am waiting for better pricing on stuff I am watching (FFH, BRK/B, L, WB.TO, BMO, FTR)

SD, are you 50% cash?

5 Great Slides From Goldman On What's At Stake In The Debt Ceiling Fight Read more: http://www.businessinsider.com/goldman-sachs-explains-whats-at-stake-right-now-because-of-the-debt-ceiling-2011-7#want-to-impress-your-friends-with-knowledge-about-the-debt-ceiling-done-6#ixzz1Sw0OWkFf

A lot of players with knowledge not available to the rest of us are decreasing risk in their portfolio + raising cash: http://dealbook.nytimes.com/2011/07/19/goldmans-safer-positions-eat-deeply-into-its-profit/ Goldman’s Safer Positions Eat Deeply Into Its Profit http://blogs.barrons.com/focusonfunds/2011/07/22/soros-funds-cash-stash-up-to-75-hedgies-ponder-global-sovereign-debt-issues/?mod=BOLBlog Soros Fund’s Cash Stash Up To 75%; Hedgies Ponder Global Risks Should be interesting.

http://online.wsj.com/article/SB10001424053111904233404576462461660747244.html?mod=WSJ_markets_liveupdate "Investors looking for protection against a U.S. debt default could be in for a surprise. In the market for credit default swaps, it is currently more expensive to buy one-year insurance on Treasurys than on "junk"-rated Indonesian bonds. The unexpected price differential is one of many quirks of the market for U.S. credit default swaps, a small corner of the financial system that has been thrown into the spotlight by Washington's tortuous talks over raising the debt ceiling." How about holding some cash?

"Grand Bargain Talks Collapse" http://online.wsj.com/article/SB10001424053111903554904576461942119782926.html?mod=WSJ_hp_LEFTTopStories Oh, boy...

http://seekingalpha.com/article/280795-6-public-companies-similar-to-warren-buffett-s-berkshire-hathaway LUK, BAM familiar here Y, OTTR, SEB not familiar to me FFH not mentioned

That's not at all what it sounded like he meant in that article, for what it's worth. It sounds like he believes in 17 year cycles. Why else would he have said the next bull market will end in 2033? It looks like there was a loss of accuracy in translating what was said to what was written. The transcript was written by another party. It never occurred to me that he could mean that there would be a market cycle lasting exactly 17 years. I dont think he thinks that way. I think every one here would agree with you if that were the case.

http://www.gurufocus.com/news/138878/pabrai-2010-annual-meeting-transcript--netnets-and-berkshires-put-options

http://www.gurufocus.com/news/138950/francis-chou--the-investment-guru-that-you-never-heard-of-comment-on-abh-wpi-bac-brka

he will still be around brk/b just not at Wesco, no?

Not a viable option. Now the massive deficit is financed by a massive expansion of debt and a small expansion of money. It would take a huge expansion of money to finance the deficit without the use of increased debt. The rate of money expansition would immediately jump to double digits without massive cuts in spending. The international banking system would dump dollars on the prospect of continued hyperinflation of the dollar. US credit would be shot. And then things would get worse. Is there not a way for the gov't to do this covertly? i.e fudge the numbers? Sorry if this is naive or dumb

" Oh just "a few days with missed interest payments" --- how will commercial paper market behave? " How would our bank react to this if that was a mortgage payment? Realistically money wise it is no big deal especially because interest rate is next to zero. If I am the bank I would be thinking, ok if the re is no fix for why you re late, what will happen next? A missed payment? Eventually no payment? I think we re looking at higher interest rates. But then again, can the system take higher interest rate? (all people who are having trouble paying they re mortgage + other debts with current interest rates, can they afford the increase) In the real world (you and I), if you want to borrow more money (raise the debt ceiling)+ you can t pay what you already owe, you definetly have to pay higher interest cost + show a credible plan for reducing spending + debt. Oh boy.

I would like to continue owning both. What proportion do folks here think would be good? I am now FFH:BRK 2:1 but am looking to add BRK here as it appears to be a good buy. FFH seems fairly priced. I would like it to go on sale so I can pick up some.

Why cant U.S gov't continue to print money, while keeping the debt ceiling at current level, continue buying their bonds (keeping interest rates artificially low) +/- buying stock markets (as a stable market is very important for consumer confidence, valuation of various pension funds, etc). The real value of dollar to decline. The worst thing to hold is U.S. debt, cash.

Woodstove, Just watching program on BNN on General meeting held tonight. One company stock holder explained that he is holding because the company brings in ~ $3 billion of EBITDA just from their encryption stuff alone. $4 billion in free cash in last year. Growing rapidly in emerging companies. No debt + cash on balance sheet. all for ~$13 billion enterprise value. This is outside what I know, but your buy looks interesting.

http://business.financialpost.com/2011/07/06/battle-set-for-nortel-cash-pile/ anyone here invested in Nortel bonds?

if you are a star manager why would you be running a mutual fund? And specifically why does Berkowitz continue to run Fairholme / mutual fund

http://www.businessinsider.com/charlie-munger-quotes-pasadena-2011 12 Pearls Of Genius From Warren Buffett's Right-Hand Man

Do you think he would be better off in a different structure e.g. insurance like Prem Watsa or just traditional hedge fund? or just stay as a mutual fund (the mutual fund redemptions gotta hurt, usually occurring just when things are getting cheaper)

Tom, I was in Bruge almost 25 years ago. What a beautiful place. Here in North America we complain that we have "too much" government. "400 days without a government"-how does that work?