ourkid8

#3. Companies who can issue debt at a cheaper rate then their dividend yield e.g. Philip Morris international. They can issue long term debt below the price they pay out their dividend so for those scenarios it's truly a no brainer to issue debt to repurchase their stock. Thanks, got it. Are there any reasons you can think off beside those 2 ? I would love to hear if there are any other ones

It looks like Fairfax financial picked up the 5% stake instead of Fairfax India.

AIG!

http://www.bloomberg.com/news/articles/2016-03-28/fairfax-to-buy-bangalore-airport-stake-for-322-million-from-gvk?cmpid=yhoo.headline Fairfax to Buy Bangalore Airport Stake for $322 Million From GVK.

As a practicing Muslim, I don't know what to say besides these are extremely ignorant comments and Islam teaches us peace and tolerance. Are there bad apples among us, sure. and just to reiterate no practicing muslim who follows our prophet would EVER condones any of the terrible attacks. (You should spent 10 minutes to read about his life and see how peaceful and humble he was and try to focus on the jews who lived in Madina (Yatrib) in harmony and respect) How come no one comments on the following non-islamic groups such as FARC, RIRA, NPA, Zionism, KKK etc who spread hatred around the world? -Muslim population is 1.3-1.7B world wide so 300-500m of us support terrorism? Are you kidding me? I personally don't know 1 Muslim individual who supports any kind of terrorism. -Islam is truly a continuation of Christianity / Judaism and we all follow almost the exact same principles. Islam never propagates an alternative to US law to instill sharia law. I think you need to stop watching the media and learn the truth -Stay in our own country, what Canada/US? I'll stop here but these ignorant comments must be stopped. Seeing where your from, pretty much explains your comments and shows your ignorance - not surprised! Sanjeev, would you please stop/warn Edward for these hateful comments.

After issuing equity, why would they sell 40% to OMERS? It does not make sense... From the annual report: third largest insurer in Greece and which distributes its products through Eurobank’s network, for $347 million–at about its underlying book value. We got to know Alex Sarrigeorgiou in the last few years and were very impressed with him, his management team and their track record. The company writes A306 million in premiumsA248 million in life insurance and A58 million in property and casualty. Over the past ten years, the property and casualty operations have had a combined ratio of 60.0% while the life insurance operations produce stable earnings with plain vanilla products. Eurolife had net income in 2015 of A48.4 million, 45% from life and 55% from P&C. We welcome Alex Sarrigeorgiou and the over 300 employees of Eurolife to the Fairfax family. As we did with Brit, where OMERS purchased 30% from us to help us finance the acquisition, we expect OMERS to buy 40% of Eurolife’s shares at close to help us finance the acquisition. In the case of both Brit and Eurolife, we expect to be able to acquire the interests back within the five years after closing, after providing OMERS with an acceptable return. The team at OMERS has been a pleasure to deal with

future generations, as always lets kick the can down the road and let the next person worry about the mess.

$10Bish of infrastructure won't push the needle for an economy the size of Canada. When do you think a shovel will hit the ground? My bet is 2-3 years from now as they have no sense of urgency.

http://finance.yahoo.com/news/fairfax-financial-raise-c-735-004825057.html Another equity raise, not sure why it's required as we have sufficient cash on the books.

1. Philip Morris International - Moat is absolutely incredible 2. Fairfax Financial - Strong management committed to creating shareholder value over the long term and turning into a mini Berkshire 3. Berkshire Hathaway - Enough said

How about the following: RFP, SD and XCO

+33.81% however I had a large deposit which is seriously skewing my results. Without the large deposit, -1.6% for 2015 (Thank god for Forex)

I am definitely guilty and one of the individuals who complain on a yearly basis. I believe it was last year or two years back in which they paid a dividend and immediately after issued shares for an acquisition which truly pissed me off. I would have rather Prem and team fairly compensated salary/bonus based on performance wise instead of having to issue a dividend. Since the dividend is $10/share, I hope it stays at this rate ongoing and never increases.

http://www.cornerofberkshireandfairfax.ca/forum/fairfax-financial/why-does-fairfax-pay-a-dividend/ Read Sanjeev's response: "Prem fixed his salary at $600K per year many years ago, not unlike Buffett's fixed salary. Several years ago, Prem decided to institute a small dividend, so that both he and the many executives at Fairfax, could receive an annual salary based on the economic growth of the business without having to ever sell their shares. The compensation structure would also be equitable for every shareholder as well. " Prem holds about 2 million shares, as I recall. That gives him 20 million per year, and a net worth well north of 1.2 B. The dividend isn't for him and never was. It was for other FFh employees who were shareholders. I imagine Prem lives well within his 600 k salary anyways. What could he possbily spend the money on? He's like most of us on this board - sensibly frugal.

Agreed but we all know the reason for the dividend and it is not going away. I wish they would pay Prem a fair wage and cut the dividend but that's another story.

http://www.fairfax.ca/news/press-releases/press-release-details/2016/Fairfax-Declares-Annual-Dividend/default.aspx Let's hope there is not an equity raise right after!

Are you talking about allowing them to invest your funds directly or for you to invest in their investment vehicle? If it is directly, every response on this board should go to Buffett as his track record is second to none and he has said he can compound small amounts at 50%+ /year. If it is his investment vehicle e.g. Berkshire then that's different story all together due to it's size.

Why wouldn't you just send the feedback directly to Cara? Please see link below: http://www.cara.com/contact.php

BAC is in the process of redeeming $2B in trust preferred securities related to its ML acquisition. They will also post a fourth quarter pretax non-cash write down of $600mm. Can someone help me understand why? When they redeemed other debt, there was no subsequent write down. http://www.thestreet.com/story/13409305/1/bank-of-america-bac-stock-lower-on-600-million-writedown.html?puc=yahoo&cm_ven=YAHOO

I think we are talking about two different companies. I was asking about PDH (sanjeev's baby)

Yeah, whats the point of this thread and who really cares of Scott life? I mean no disrespect at all... Serious question: why did you start this thread?

Why would you say PDH is your best 2016 idea? its a large position in my portfolio but overvalued at the current price and we need to wait for fundamentals to catch-up to the stock price - it could take years.

Agreed with a mediocre capital allocator at the helm.

VRX and AIG. Valeant needs to exceed their 2016 estimates and prove to the market how durable their portfolio is along with demonstrating to the market they do not need to buy other businesses as that only enhances their returns going forward. The next catalyst is the results of the special committee, even though Philidor is now in the rear view mirror, it will give the stock another boost proving management's credibility. AIG, management is in a tough position as they need to prove it makes sense to continue with the current structure and Mr. Icahn will continue to push management to deliver or break up the company. Either or, it's a win/win for shareholders. With the potential for further interest rate hikes, that will further enhance returns going forward.

In my short investing career (8 years approx.) I have only been burned twice - ATPG and SD. ATPG was a very small allocation and I got out with a enjoyable 30ish% loss but being the highly intellectual guy I am, I decided to take a 5-6% position in Sandridge and I am down an even more enjoyable 95%. I have decided, O&G is outside my circle of competence and I will avoid this industry all together. It has been a learning experience and a mistake I will not make again.