bookie71

Keeping your tenants is very important to your cash flow. When they were building the Alaska pipeline, everyone was raising their rents to the max. I had one client who had about 20 single family homes and his rents didn't go up. I asked if he was skimming, and he stated that when the others had vacancies he would be full. Said that over the years he had found that when he raised rents, a few people would move, then he would have to go in, paint, clean up, etc. This took time and he might miss a couple of months until he found a new tenant. It would take quite a few months to make up the missed rent. He had many folks who rented from him for over 30 years and had actually paid off his mortgages for him. Sure enough when Alaska went into its recession (depression) after the pipeline was built, he was full. He also said that buying was where the money was made.

Don't forget the letters from WEB on the Berkshire Hathaway site (particularly the early ones).

Check out the local or community banks -many are doing quite well. Most dodged the bad loans that the biggies got into (not all but most). Look for banks in your area as you will be more able to evaluate their reserves and you will be more familiar with the local real estate market. Don't expect the real estate market to turn around over night. when Alaska had it's crash in the 1980's it took almost 15 years to get back to where it was prior to crash. Watch the small home builders, they seem to lead the charge.

I have a small office building. I don't do residential as I would be a sucker for a sob story.

How much $$$ has Microsoft poured into Askjeeves and had no effect on Google? That should show some type of moat.

Please remember that Mr. Market does not always follow logic. Our job is to take advantage of the discrepency's. :D

It might be the part of the country you are from, I am from the South and didn't think he talked slow.

Being one of the technically challenged members I enjoy the reminders and site.

Probably he prefers for the quality of management - look at all the lawsuits against Exxon - some are for criminal type things. I don't know about the other companies.

Right on John. Being a dinosaur, I can remember when 18% was thought to be an outrageous interest rate. Now they charge 29+ %, change their terms in midstream, send bill out at different times , etc.

People will let credit cards go and pay on mortgage and car. They have to have a place to live and a way to get to work or job interviews. Check out www.clarkhoward.com he preaches this almost daily oln his radio show.

The more I read about Prem Watsa the more I would like to meet him someday. Not many people I can say that about.

Back in the dark ages when I went to college, I believe that there was one or two chapters in the Advanced Accounting book on the subject. Basically you have to put fire sale values on the assets or try to come up with liquidating values as it is no longer a "going concern"

How much was "mark to market" adjustments?

I believe that they were following the herd (group think) ;D

On one of the local banks (AKPB) the TARP funds give them warrent to purchase common at apx. 20% of their book. Prety harsh terms but the local bank probably deserves it. I believe a copy of the agreement is filed with the SEC

I really miss the "lower of cost or market" concept. It sure took a lot of the "fudge" or BS out of the equation.

First National Bank of Alaska bouth back about 5000 share (1.3%) this past year. FBAK

Thought you might be interested in the following article and chart of Alaska's forclosures and slow recovery in the 1980's. A llarge number of banks and credit unions failed. The state lost almost 1/4 of it's population. It has come back but much slower than anyone thought it would. http://www.adn.com/front/story/742178.html

http://www.wescofinancial.com/cm2008.pdf enjoy

If a company marks down goodwill due to its impairment causing it to lose value, does that value ever get increased in subsequent years as the economy changes? Thanks ???

We had a governor who mostly overcame a stuttering handicap, but sometimes he still stuttered. That didn't stop him from being a brilliant individual.

Not bad for someone who only makes 600k per year. ::)

I think you folks are taking the accent comment way too harshly, I thought it added to his humanity and intelligence as it shows he knows more than one language. I thought the article was very good, and made me wish I could meet the gentleman.

Remember the old saying about economists, "If you laid all the economists end to end they would not reach a conclusion." :) :D ;D