alpha

Munger taking questions at the Daily Journal Annual Meeting:

Also started position in Suncor and Redhat. Almost out of PSX. ... AAPL position only moved by 1%

Munger answering a range of questions at Daily Journal Corp annual meeting: https://www.reuters.com/article/us-dailyjournal-munger/charlie-munger-targets-active-managers-elon-musk-praises-china-idUSKCN1Q32V7

From what I have read #2,#4,#5,#10 on that list are all currently experiencing housing corrections/crashes. Interest rates have been abnormally low for over a decade. These predictions were based on the idea that rates have to normalize. It remains to be seen what will happen in a higher rate environment. The only thing drawing this wealth to Canada is the lack of money laundering laws and regulation, if that ever changes the wealth could disappear as quickly as it arrived.

I wish Mukesh would come to my country and do the same! https://www.cnn.com/2019/02/04/tech/rcom-ambani-bankruptcy-court/index.html

What is the "commercial facility" does that mean the business owns the building it operates out of?

https://www.reuters.com/article/us-berkshire-lithium/berkshires-lithium-venture-may-supply-u-s-automakers-including-tesla-ft-idUSKCN1PE0SX

As others have said trying to rationalize short term moves is a waste of time. If I had to guess ... maybe some investors have soured after Buffett made a very public bet on Apple right before it announced profit warning and slowing sales forecast.

https://www.bloomberg.com//news/articles/2019-01-17/warren-buffett-s-real-estate-network-expands-into-northern-italy?srnd=markets-vp

RIP

Thought others might enjoy this article: https://www.thestar.com/business/2018/12/21/canadas-warren-buffett-drives-his-own-pickup-truck.html

Seems like Buffet was betting on higher rates with his recent purchases while Druckenmiller says he's short financials.... Druckenmillers total 180 on his view on rate hikes is a bit strange, he literally went from one extreme to the other, can't help but wonder if he is just trying to move the market for his own benefit.

Great interview, thanks for sharing.

https://www.bnnbloomberg.ca/montreal-condos-lure-investors-but-many-are-losing-money-1.1177868

Thanks, I wanted to watch this when it was first released but didn't want to hand over my CC# to that site :)

Thanks! my "Recent Posts" list was filled with that junk

Canadian government is increasing the national immigration rate even more, to almost 1% of the population by 2021. The housing situation in Toronto is already ridiculous with very low vacancy rates and the government has increased the cost of new housing development with the ever growing list of regulations and approval processes. https://www.cbc.ca/news/politics/canada-immigration-increase-350000-1.4886546

Now down -14% YTD, at this level it's getting close to where OMERS initiated their position in 2017. I am not sure why it declined another 3% today, most of the public holdings look like they had a green day, and the Rupee didn't decline. Anyone buying at these levels?

A user on reddit mentioned the decline is related to the way their debt is structured. There is lots of CP that is rolling over in the next few months with possible liquidity issues. IIFL is explicitly mentioned in this article about India's NBFC problem: https://www.bloombergquint.com/markets/hold-tight-heres-why-the-nbfc-scare-isnt-over-yet#gs.UmG_YIo

CEO of Cleveland-Cliffs had a melt down on recent earnings call, he suggests one analyst should commit suicide. One of the worst calls I've heard in a while :D https://www.cnbc.com/video/2018/10/19/ceo-berates-analysts-on-conference-call-you-are-a-disaster--they-will-have-to-commit-suicide.html?__source=cnbcembedplayer

Condo rental rates in Toronto are up 7.6% Nationally housing starts declined in September, but gained in Toronto For several years in a row Toronto holds the record for most tower cranes erected in North America. I would like to find an unbiased forecast for upcoming new build completion over the next few years. It seems like right now supply cannot keep up with demand. https://www.bnnbloomberg.ca/toronto-condo-rents-jump-7-6-to-2-385-per-month-in-third-quarter-1.1150775 https://economics.td.com/ca-housing-starts

Latest Vancouver RE data shows sales dropping with inventory building, and BOC expected to accelerate rate hikes into 2019. https://business.financialpost.com/real-estate/real-estate-board-reports-metro-vancouver-home-sales-down-sharply

Einar Aas was apparently Norways largest individual taxpayer because he ran his trading portfolio under his own name. He had a huge position in the power price market and when a black swan event happened on the spread of power prices between Germany and Norway he lost ~134 million. Now he has to liquidate his estate and file for personal bankruptcy. I am sure a guy like this has money stashed in tax havens but it is still an interesting story. https://www.reuters.com/article/us-nordic-power-nasdaq/nasdaq-says-nordic-trader-whose-deals-went-sour-agrees-to-sell-personal-assets-idUSKCN1M12K0 https://www.bloomberg.com/news/articles/2018-09-18/how-a-star-power-trader-could-clear-own-trades-and-lose-millions https://www.bloomberg.com/news/articles/2018-09-15/phantom-trader-who-blew-a-hole-in-world-s-oldest-power-market

This article is about a woman who took out loans against her home to purchase houses for both of her teenage kids in a city near Toronto. She views them as long term investments. Sounds like she currently rents them out at -$1000/month cash flow. The financial details mentioned are a little confusing though. https://www.thestar.com/life/homes/2018/09/14/property-investment-is-how-this-mom-is-providing-for-her-kids-future.html

Has he given any insight into why he's selling?