indirect

PNC is one of the better capitalized bank.

I asked my broker Etrade to convert PK sheets to canadian shares and they obliged

Not necessarily, pk sheets converted to Canadian holds. No sec reporting requirements.

Rohit, You are on the right track, if you read Fortescue footnotes they acknowledge the huge liability for the notes.

He has a history with this board ( long story) with Fairfax stock manipulation and is one of the FFH shorts.

33% of the net worth

Try to find intrinsic value of FFH and buy 50 cent dollar

Charlie, GMO and Seth are saying the same thing, existing holders are going to experience pain which may be somebody gain if bought at the right price. Anecdotally, I am hearing of great deals in commercial real estate at sometimes half to a 1/4 of the construction price + land.

I thought everyone is too pessimistic including media, money managers and even this board, which made me look reevaluate all my positions and I also reread NYT op-ed article and the 1999 article. I think it may be useful to reread both. Good luck to all of us. Thanks to all of you who contribute to the board.

Sanjeev as you know I follow the 20 tkts advice of WB, my first to Pabrai funds in 2002, FFH in 2004 ( double down with 140 warrants at 3 1/2 thanks to AL on the board), LUK and WFC in dec- March 2008-9, now I have sold my WFC completely to go into WFC warrants for its 3X leverage. I did consider BAC and JPM warrants also and these BAC warrants look esp. good, however inherently WFC management is better and most imp, if we have another meltdown the derivatives at those banks could kill them. Now uncle Sam may bail them again but equity and warrant would probably wipeout. Those are my thoughts in a nutshell.

Thats how OTTI is explained in LUK AR by Cumming and Stienberg.

Hi! Glider, I am at the same Hotel. May be we can share a taxi. Call me at 661-201-9226 if interested. Indirect

EOG's rational is similar to SD, going from gas to oil. WSJ article http://online.wsj.com/article/SB10001424052702303720604575170203253516186.html?mod=djemheard_t

Steve, I sold my ORH pref. Thanks Indirect

Steve, My guess is that he sold the lvlt bonds to buy some undervalued equity. credit markets improved before equity markets. indirect.

I will try, as I am 286 miles away.

Should FFH be sold at 1.2X book value? or buy puts?

Al, I enjoy your posts and have profited from FFH Leaps few yrs back. I have looked at BAM and I think it has to be looked as 2 biz , asset gathering and asset management. Asset impairment has affected valuation of both biz. and as inflation hedge, in current deleveraging secenerio commercial market may have deflation ( due to oversupply by deleveraging) and managing debt may become problematic. I have thrown this into too hard pile. indirect

Monish once said that hearing and watching WB is like a onion. There are layers upon layers. I remember him buying junk bonds by boatloads in 2002 including lvlt and was out with doubling of the money in months while SE asset and HW are holding. Over the last five yrs he was never vocally bearish like HW or others, however if you follow the money he was holding CASH. So simplest answer to your Q is cash which is a hedge.

A bank or insurance co. is only as good as the reserves it makes for bad debt or UW loss. So essentially they are a estimate, which is as good as trusting the management say on those numbers. One way to look for it is how was reserve in previous yrs ( estimated vs actual for each of past yrs) This is where the triangle come in which is called claim reserve development. Educated courtsey of CM and FFH annual reports

I will be there and would like to get together.

Guys, My hypothesis : FFH writes long tail and intermediate insurance and 5 yrs ago they had to write more to survive and may be at that time they were not as discriminating. We are paying for it now? AS a corollary will the same thing happen now when co like CNA, AIG etc need premium growth?

Why don't you write a 15 put feb19 for 1.1 for a effective price of 13.9?