mankap

Thanks for Sharing I think Fairfax is building a platform from where to make investments in India. I think we will see more investments from Fairfax in India. With people like Ajit in the team, they are going to add value for Fairfax shareholders. I am happy to see the progress so far.

Slide 10 shows that at $55 production will not change from 2015 to 2016 and decrease slightly in 2017. If the oil stays at >$55 production in US could increase. If the oil industry is able to cut cost the $55 breakeven oil price can even go lower. Now I understand that Al Awalaeed's statement that we may not see $100 oil. If the oil price goes that oil the US production will show a significant increase thus bringing oil price down.

You can get the filings at sedar.com. Here is the link. This is the company in which Sanjeev Prasad is a Director. http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00030626

I read the article today morning. He is also big on Freddie and Fannie. Lot of value investors are big on Freddie and Fannie

Facebook is after the installed base. Whats app has 1B users. It is very popular in India. Everybody uses whats app there.

I agree, it is a brilliant proposal.It raises the stature of Fairholme fund and Berkowitz as a top tier fund in trying to pull a 52 B recap. What i understood is that preferred shareholders get the equity in the new company and will not be paid by UST. I am still reading and trying to understand the proposal.

I think realistic scenario is that Congress wants to shrink Fannie and Freddie over time.Fannie have $3.5T in assets. You cannot liquidate 3.5T in one day.I think Congress will set a timetable say 10 years to shrink it. The question is whether Fannie will stay in current form for 10 years.Or will govt privatize it and then shrink it?

Congrats James 25% return is very impressive. Now I know that at least one board member lives close to where I live.I am in Atlanta.

Clearly FNMA not being recapitalized is the biggest risk for common preferred. But Fed has more to gain with recapitalization than liquidation.Fed can probably get $100B with recapitalization in 2014 than $50B in dividends over 10 years or may be more. Berkowitz thinks recapitalization will happen, that is why he has risked $500m in the common preferred.

Berkowitz is betting that dividend on Common preferred will be restored and Preferred will trade at Par. The questions if that will Treasury after getting their money back still punish common preferred? We know Fannie will be earning lot of money even in run off mode. Will govt's exit in Fannie take AIG route or some other form. Even if the Govt. does not get out of Fannie, govt. will face pressure to restore dividend to common preferred after they have got their money back.

Thanks for posting this. I had bought BAC preferred in 2010 and have not bought bonds. I will start paying attention now.

BAC at 12.45 in AH

Parsad It is way more than $7B that you predicted. It is 10.5B You are the winner!

BAC to buy back $5b of shares. Bank of America today announced that the company’s Board of Directors authorized the repurchase of up to $5.0 billion of common stock and the redemption of approximately $5.5 billion in preferred stock. The Federal Reserve Board has informed the company that it completed its 2013 Comprehensive Capital Analysis and Review and that it did not object to the company’s capital plan, including proposed capital actions. "We have

I thoroughly enjoyed reading is as always. I did not know that both Ted and Todd Combs are great runners. Ted has done marathon in 3.01 hrs.That is a really good time.

I just finished it and thoroughly enjoyed it. Thanks for posting it on the board.

I was also pleasantly surprised to see Chou's interview in WSJ today.He has come a long way. I was also surprised , that he was born in India and spent the early years in India before migrating to Canada.I always thought that he was born in China.

What do you think about the dividend that BAC will be proposing to Fed?

Harry Dent is not a credible economist in my eyes.I still have his book' The next great bubble boom' where he predicted Dow will touch 36,000 in 2006-2010. I think he writes about extremes to capture people's attention but I do not rate him as good forecaster or a good economist.

15% cash 85% Equities ( long only)

Thanks Sanjeev for posting the link. I thoroughly enjoyed watching it.

I passed level III in 2008.

Congrats I reminds of my CFA days in 2008.

Muddy water has got so powerful now that they can sink any chinese company if they want to. people will rush to get out of the company the moment they see muddy water report on the company.

I do not know if there are HNR holders on this board.I know Pabrai had a big position couple of years ago. I have some holding and will see what to do tomorrow. http://www.bloomberg.com/news/2012-06-21/harvest-natural-to-sell-venezuela-stake-to-pertamina.html?cmpid=yhoo