Munger_Disciple

Not for a long time. It wasn't a great deal for Berkshire (despite the fact that they were using overvalued stock) and Buffett even wrote about it in later annual reports. Berkshire inherited a lot of GenRe problems and had to replace management to fix it. GenRe would have blown up w/o Berkshire deal from 9/11 exposure and derivative bets.

Because there is inherent risk in an (overvalued) stock deal between the time deal is struck and the time deal closes. If I were seller to a company with overvalued stock, I would insist on cash payment or a stock deal with a put option.

Why would a rational seller accept totally overpriced shares for their company? Only a fool or a BS artist would, and I am not sure that's the type of company FFH would want to buy.

I don't think I am confused; you are not thinking this thru' IMO. If you are selling stock at 4x BV and I am an existing public shareholder who is able to sell my shares at that price, I will sell & get out. If I have a higher margin of safety in an investment, I will get a higher return if it works out compared to an investment with lower margin of safety.

Not just for an investor buying at high multiples; it reduces the margin of safety for all investors going forward including for those who bought previously at much lower multiples. In other words, forward returns for all investors will be reduced, so investors are better off selling at that point and use the proceeds in a more attractive opportunity.

Not only that, multiple expansion reduces the margin of safety as the gap between price and intrinsic value narrows or even disappears.

+1, thanks for sharing @A_Hamilton

I am not selling but you are truly bullish to keep buying at these prices (I mean it was just a tiny correction of index related unwind).

Thanks @gfp

If I understand correctly, US investors can only buy this in retirement accounts?

Bloomstran's letter is good for beginners and recent owners of BRK but I don't think his letter contains major gems or insights that are not already known to most close observers of BRK on this board or elsewhere. Even the portfolio "repositioning" effect of GenRe was well understood by many followers of BRK before Bloomstran included it in his letters.

Happy Thanksgiving to all!

This is only tangentially related to BRK but Whitney Tilson is running for mayor of New York City. https://archive.ph/1mIK3

Great letter from Warren; oozes sincerity, wisdom, and class!

Just ordered Charlie & Warren's paintings to decorate my office. Thanks @gfp!

Beautiful, thanks

Awesome! Do you know if/where we can buy a copy of Charlie's painting? I would love to copy this guy's wall.

It's weird but he only seems to write 500 page reports on BRK and not much else.

BRK Levered ETF. Buffett probably hates this s**t: https://finance.yahoo.com/news/buffett-berkshire-being-packaged-leveraged-193611168.html

Nothing new but a good article in WSJ: https://www.wsj.com/finance/investing/does-warren-buffett-know-something-that-we-dont-48fabc9d

Thanks @wabuffo. Great tutorial and you are the best! I think Sheila Bair was talking about possible increase in LT rates. Naturally the treasury determines the composition of the treasury debt issued but can they keep controlling the LT rates with increased deficit spending forever by issuing mostly ST treasury bills? Doesn't the private sector at some point have a say in determining the LT treasury rates?

There was a good interview with Sheila Bair, former chair of FDIC on CNBC today. She also warned about the un-sustainability of growing US debt and its potential impact on the yield of longer dated US treasuries.

Wow! Thanks for the info