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NormR

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Posts posted by NormR

  1. Even without related party transactions...there is a degree of efficiency to the market economy.  If you allow businesses to deduct interest but not individuals, businesses will have a cheaper cost to owning real estate, and through competition of landlords, this will be passed on to tenants in the form of rent.  In other words, rents are lower than they would otherwise be if landlords did not have the luxury of interest deduction. 

     

    By allowing businesses the ability to deduct and not individuals, over time individuals will find it is cheaper to rent than buy, and home ownership levels will decline severely.  Any logical individual who still wants exposure to real estate, would rent his own home (because rents would be implicitly reduced by mortgage deductability for landlords) and buy a separate rental property.

     

    You don't need related party transactions for the "invisible" hand of the market economy to work.  I stand by my claim that if the government wants to effectively remove the deductability of interest, they will need to do it for both businesses and individuals, and this will not happen as it will cause large scale declines in asset prices.

     

    Explain the Canadian case then. 

  2. How about just ending (or capping) mortgage tax deductability?  Or removing all/many of the loopholes.

     

    I don't understand argument for ending mortgage tax deductability.  Everyone talks about it with the assumption that it somehow contributes to inflating housing prices.

     

    I guess there are a few basic things I think that most people (who argue for ending the deduction) haven't considered:

     

    1.  Ending this deduction without ending the deduction for corporations for interest on debt will not work.  You can't have one without the other.  If you try to end mortgage deductions without ending corporate interest deductions, everyone will just do the equivalent of companies doing sale-leasebacks (sell their homes to corporations that can take advantage of interest deduction, and then rent it back.  I don't think most people have considered this.

     

    You just have to include a tax avoidance clause to disallow the credit in related party transactions.

  3. i have a Humanscale Freedom chair that I paid up for and it's great, but since the I switched to a standing deak configuration, so it doesn't get as much use...

     

    I highly recommend standing desks! We haven't evolved to sit so much...

     

    I've been thinking about a standing desk.  Can you say more about the experience?

     

  4. Thanks, Norm!

     

    The last paragraph on Francis Chou's thoughts is interesting.  Looks like he might be reporting a stake in AIG soon. 

     

    Wondering, though, where he's getting the $30 in patent value per share for RIM.  Can someone else confirm that he said there was $30 in patent value there?

     

    No. He said $13

     

    I thought the $30 was way too high - but I wasn't there.  Can anyone confirm the $13?

     

  5. I'd like to thank everyone who came out to the Pre-Dinner event which proved to be a great start to a superb couple of days for value investors.  But the real thanks should go to Sanjeev and everyone at Fairfax!

     

    A big thank you also goes out to our surprise guests who dropped by and gamely answered many of our impertinent questions.  We were honoured by a visit from Francis Chou (Chou Funds), Andrew Barnard (Fairfax Insurance), and Sammy Chan (Fairfax Asia).  (I still feel bad about asking Francis about RadioShack.  What can I say, I was genuinely interested.  There's something about a low price that does that to me.)  The visit was totally unexpected and most welcome! 

     

    In some ways the Pre-Dinner event was reminiscent of the intimacy of the Dinner from a few years ago.  I was also surprised, and pleased, to see so many people show up early in the afternoon.  At this rate we may have to start earlier next year.  I also suspect that we'll pick a location closer to the Royal York next year.  In addition, if you have any suggestions on how we can make it better, please let me know here or privately.

     

    But I know that everyone wants to see my "secret" compilation of stocks that were mentioned by people at the Pre-Dinner event.  If you make money on any of them, please think about donating some of your gains to The Crohn's & Colitis Foundation of Canada.

     

    Stocks To Think About Before Dinner

     

    US Tickers

    Alliance Healthcare Services (AIQ)

    American International Group (AIG)

    Bank of America (BAC)

    Bank of Ireland (IRE)

    Capital Trust (CT)

    Ebix (EBIX)

    Hartford Financial Services Group (HIG)

    General Motors Company (GM)

    Level 3 Communications (LVLT)

    LIN TV (TVL)

    Micropac Industries (MPAD.OB)

    Multimedia Games (MGAM)

    NTS (NTS)

    Popular (BPOP)

    Saga Communications (SGA)

    Salem Communications (SALM)

    Thomas Properties Group (TPGI)

    Ultra Petroleum (UPL)

     

    Canadian Tickers

    Algoma Central (ALC)

    Bombardier (BBD.B)

    Canadian Oil Sands (COS)

    EGI Financial (EFH)

    Glacier Media (GVC)

    Hartco (HCI)

    SIR Royalty Income Fund (SRV.UN)

    Torstar (TS.B)

     

    World Markets

    Komori (Tokyo: 6349)

    Piramal Healthcare (Bombay: 500302)

     

    It was a great couple of days with many friendly value investors.  Mind you, my portfolio might have been driven to the brink of suicide by Sam's outlook which seemed something like

    .  Ok, I jest.  Well sort of.  But I'll have more to say on that when I type up some meeting notes in a few days.  Until then, I think that it's fair to say that Richie Boucher from the Bank of Ireland charmed the socks off many investors at the Dinner.  Be sure to keep an eye out for new Irish pubs in Toronto. 

     

    I'd like to thank everyone who came out.  It was great to see both old hands and new converts.  You all make the FFH events special and I hope to see everyone again next year!

  6. One of the biggest insights into Sardar has been his collection of sports cars, I heard he has a Ferrari a Lamborghini and Bentleys. I don't believe any value investor in their right mind would be caught so early in their career with even one of these cars, later on maybe one but never 3, and in Sardar's case, he appears to love the attention.

     

    Spot on.  Not a good thing.

  7. Norm, I know you probably won't get there until 6-6:30pm with the pre-dinner event, so could you do me the favor of being our journalistic scribe for the night?  ;D  Any notes you can take of the speakers, and especially the guests from Fairfax, would be enormously appreciated by everyone on here.

     

    I'm kicking them all out of the pre-dinner at 5.45  8)

     

    I'd be happy to scribble things down.  But I'm not going to get never mind in trouble should we get him talking  ;D

     

    FFH Pre-Dinner & Survival Guide

  8. I raised my eyebrow when they threatened to arrest economists for trying to calculate inflation.  Oh, and fixing the price of Big Macs to avoid bad news from the Economist's annual PP survey.  :o  In other words, you know your system is F'd when ...

  9. New startup allowing people to buy stocks in very low increments directly from companies:

     

    Firms already do this via DRPs/SPPs ...

     

    Whats a DRP/SPP?

     

    Sorry,  dividend reinvestment plans and share purchase plans.  Many brokers offer DRPs and some companies do too.  Share purchase plans are a little less common but allow investors to buy shares (often in fractions to 4 decimal places) from the company every quarter/month.  Usually without a fee.

     

    The Canadian Shareowner does something similar but with some small fees.

     

    There's a fairly big group of investors who love DRPs/SPPs out there

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