PED

share out BRKA (period 92-13): 1,1M -1,6M shares out FFH ( period 95 -13) 8.9M - 20M + PW managed to issue FFH shares when fairfax was trading at 3-4X BV. (97-98) An opportunistic move which in-fine had a great ( I did not made the maths) positive impact on the compounding BV/per share performance. Time will tell why he decided again to dilute his shareholders and if like in the past it was the right move.

The paradox is that FFH mgt has been fairly septical about the equity market valuation since 2010. Their (mine!) scepticism had a great opportunistic, unrealised and realised cost to FFH. Would they consider the current valuation of their own stock the ultimate proof of the current bubble they seem to fear? :o :'( Those with a very long term views and medium return target have little to fear owning the stock at current level, those with a more disciplined and unemotional approach will feel less comfortable... The question is not about this Q3 but the future, and the answer is a bit "too complicated" ...

Pasad, I wish you are right (new buying opportunity below BV) but I doubt the stock will move dramatically on the Q3 news. - We should welcome the Combined Ratios improvement. But no major disaster, no hurricane, and hard market pricing are the main reasons behind it. - On the investment side the (unrealised and realised) results continue to be awful. Who is surprised or scared on this board? -Bbry, is the only source of concern, not only for the distraction, not only bcse FFH initial theories were totally wrong and could continue to be but because they are now facing huge pressures (media - political - credibility) and scrutiny. Not exactly the best way to work in a " disciplined , no ego, no vanity" atmosphere. They had faced much bigger challenges in the past :-) but as usual with their Q report they are quick to point out what goes "well" and quite slow to admit what went "wrong" , our job and pleasure to sort it out ....

http://www.businessweek.com/news/2013-02-19/sac-s-cohen-may-face-sec-suit-as-deposition-hurts-case “I’ve read the compliance manual, but I don’t remember exactly what it says,” :'( ...

"so the original purchase of airline shares seems counter-intuitive" : Indeed!!... single reason why "investment" is the business of"never say never". When run by excellent managers (owner-founder), it can be a decent (but not a fantastic) business, and resulted as great investment. Dart group, (UK based, leisure airline's Jets2com) is "THE" example of a "counter-intuitive" opportunity achieving profitability since 1985 (?) free of debt(!), owning their (all second hands) planes (except 2 or 3 leased ?), still growing wisely, trading around 6-7X, flying stealth for years, including from the "investment radars". ;) PED PS: not sure to understand how well FFH did with Chorus.