Jump to content

Partner24

Member
  • Posts

    775
  • Joined

  • Last visited

Everything posted by Partner24

  1. Done. Thank you so much Sanjeev for the board. Frankly, I don't care much about technology, I care more about the people and the content. I was also very happy with it even in previous board. Keep up the good work. ;) Cheers!
  2. And you can say thanks to Mother nature for the underwriting profit this year. If we had some major underwriting losses, it may have been a horrible year instead of a bad one. Cheers!
  3. 2009-2013: Berkshire, Markel and Bidvest: mostly no directional bet (big macro things), build the company with an ark that will do fine if we get some rain and fine if we get some drought (reach for the silver medal) Fairfax: directional bet, build the company with an ark that will do great if we get some rain and bad if we get some drought (reach for the gold medal). Fairfax positioned themselves as being very prudent and conservatives, but in fact it was not 100% the case. They had a pessimic view of the macro things, an optimistic view on on their own ability to predict them and they made a bet accordingly. I can't blame their own self-efficacy to do these things (they have a terrific track record on these things), but let's call a horse a horse. The sun shined over the last few years, we did get some drought and FFH performance over that period have been very so so. They didn't get the gold medal and are far from being on the podium 5 years later. Berkshire and the likes are having a good fundamental return (the silver medal). That being said, I was all aware of their respective strategies 5 years ago, the possible outcomes of them and I tell you it would very easy to look at the rearview mirror and position yourselves as victims, but all of you that were shareholders 5 years ago should have been aware of these scenarios and the possible outcomes related to them. That being said, Prem could have been more candid and call their directional strategy as a pessimistic bet instead of positioning themselves as the very prudent and conservative people. I'm happy to have a very significant part of my portfolio in other great companies like Markel and others that reach more prudently for silver medals and regarding FFH, I still keep my shares. I say that if things don't change over the next 2 years or so, FFH were not only far too early in their predictions and bets, but were also fundamentaly wrong. It's clear that they were too early and it did cost us a lot of money so far, not still 100% clear about being wrong. Cheers!
  4. Guys, please don't get overexcited. I want to buy the shares at a fair price . So this project is gonna be a mess ok? ;)
  5. Regarding the FFH business model, I know the thing is far more lumpy and I can live well with that IF it makes a difference over the long term. So the plan is to keep the shares for some time and see if the FFH plan they had for years now will reward our patience, tolerance to the lumpy things and long term view. That's what I wish both with my words and my wallet. Cheers!
  6. Sanjeev, who is not letting them work? They can take all the decisions they want, we don't phone call them often, they have our votes...and Prem even has multiple voting shares and nobody complains about that. So, just as you said, we let them work! They can can draw their own paints and that is exactly what they have done lately. When you've been a consistent and long term shareholder of a company and things have been intrinsicaly so so for a while, you want to know why. There is no hate in that. If you have a girlfriend, you know that some times will be better than others. As investing and in a couple, when things go so so...they are some that fly to other flowers and some who stay, but try to understand and communicate their insatisfactions. I'm in the second category. I have absolutely no doubt about that. I know the lessons about long term investing and low portfolio turnover values. I have a 10% or so portfolio turnover rate each year. Prem hopes to have lower shareholders turnover. He wrote that directly in it's latest shareholder's letter. Why Berkshire had a lower turnover shareholders rates than FFH historicaly? Both Ceo's are candid, both believe in a decentralized business model, but had long term financial success (but Berkhire had a more stable pace), both are friendly, etc. So part of the answer is probably there. No big macro investing, mostly no cigar butts, no big hedges, mostly no turnarounds situations. Simple, stable and easy to understand and yet efficient business model. I guess that helps to keep the BRK shares turnover rate lower but that's just an hypothesis. So the topic here is what is your own portfolio percentage in FFH? I'm in the upper minority here and if I add that this has been fairly constant over the last decade, I guess that get me even in a smaller minority, because some said they get in and out. So, can I sometimes wonder what have been right and wrong with FFH on a internet investing forum and ALSO fully let Prem and team do what their want in their own fashion? Absolutely. I feel no shame at all with the reflexions. I even think that some reflexions can be very constructive and Prem and teams can still do exactly what they want just like they were yesterday and they will tomorrow and I'll keep my shares. Cheers!
  7. Well, over the last 10 years, I had skin in the game. It's easy to support Prem or critizice him, when you had a very significant part of your own family portfolio in the company, I guess you see things in a slightly different perspective. When you take a look at FFH history, the greatness has been cyclical. I'm happy for those who owned FFH from the beginnings through 1998. These were spectacular years. Since then, it's been ok on a book value per share growth point of view, but far from being great. I'll take my own experience as a shareholder. I've mostly bought my shares in the 2003-2006 period and kept them. Since 2003-2006, it's been good overall, but not great. I've also been a MKL shareholder from quite some time. They reach for the silver medal and that perspective served us well. The issue with FFH is size and their cigar butt habit. Cigar butt and turnaround investing is great when you have a small portfolio size...it's tough when you get bigger. On the macro view, FFH also often has the tendency to wear pessimistic glasses. That kept them from different bubbles (japan, tech stocks, credit burst, etc.), but over the last few years, frankly it's been tought to keep the faith AND skin in the game. Recently, my new investments have been in small and undervaluated businesses (like PDRX). Had some success with this new strategy so far because I can be very patient, focus on intrinsic value and can tolerate very small volume and very wide stock fluctuations. Cheers!
  8. and Sanjeev you are right to not provide us with any of your investment idea. Since this is part of your bread and butter, you can keep it for your clients and if some of us are sad about that, they can just become your new client! Cheers!
  9. At some point in the near future, we will probably go the public company route as well Dear Sanjeev, please let us know when you do this. Cheers!
  10. 11. Not a single person in the world knows what the market will do in the short run. End of story. 12. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn't -- his are much bigger. Ahahaha good ones! ;)
  11. The RIM investment has an awesome twist to it though - because I had made some money before the earnings and I was about to buy an engagement ring, I had to sell some RIM shares.... and through the jeweller in Taiwan, I got to know her husband, who introduced me to his friend, who introduced me to this board (I'm serious!) Prior to that I had assume no other value investor existed LOL That's a very funny situation. I guess you are happy to have met that jewelrer! :)
  12. Well, if I would have been on that call, I would have asked one question: 1- Since you have once again hedged (near 2009), if we would not had any hedge, what would the FFH book value per share be today? Frankly, after all we went through over the years, it's the first time I'm thinking about selling some shares. I feel somewhat disapointed about their lack of candor. But that's my own mistake. I should have focus on my own "well, what will happen with our ark if the sun shine?" instead of having a blind trusting and patient attitude. Over the next few years, I will rather focus on very small and cheap businesses if there is some available. That being said, I will keep the great jockey stocks like Bidvest Group and Markel Corporation. They do not pretend to know what will happen with the economy and speculating with it. They rather focus on individual opportunities. Bidvest has done greater than Fairfax since 1988 even without all that insurance leverage and these complex and speculative macro predictions.
  13. I'm tired at these commercials from FFH when things are not doing so well. Our insurance companies are doing great... However, we were affected by bla bla bla Why not change these sentences? Our insurance companies were not affected by hurricanes or any other major cat... and However, our hedging strategy... Internal locus of control for the good and the bad things Prem! I'm a long term business partner Prem, not a potential customer. Moreover, supervisors hate employees who are always saying that it was not their fault when their decisions were not so good. Good examples should start at the top of the company. http://en.wikipedia.org/wiki/Internal_locus_of_control
  14. Me too! Me and my friends had a lot of fun listening some of his songs when we were teenagers! RIP Lou Reed.
  15. Just keep expectations tempered folks. Cheers! Because I'm still buying some shares. Just kidding ;)
  16. Well, over a 5 years period, we lagged the S&P 500, so this multiyear high it's nothing to be cheerful about when you put it in perspective. But that being said, you don't predict the future by only checking at the rearview mirror.
  17. Someone asked my to give him the auditor's statement I've received from Jack McCall from PDRX, so here it is in the attachment. PDRx_FS_2012_FINAL_10_29_12.pdf
  18. Thanks to all for all the suggestions! I've took a look at all of them. Pdrx is indeed quite cheap. Lot of cash (stock is almost trading for the cash into the bank account) and is still profitable and generate free cash. One thing that pick up my attention were the Grant Thornton accountant notes. No declaration posted on the website! So I've asked Jack to obtain the official financial statements. Accountants declaration is fine. The new annual results should come out in the coming week, but yes the stock price is still especially cheap. I should have take a look at it a few years ago! ;) Cheers!
  19. 1- Not trying enough different views of value investing. Have bought some very good jockey "permanent" stocks and quality companies, and the results were good, but I should have tried some cigar butt and very small promising companies that were under the radar. Warren would buy those under the radar small stocks if he were not managing a mammoth portfolio. So the new investments are companies like that. Let's see what happens over the next 5 years. Stay open minded, try and see. That's the lesson here. 2- Some omission mistakes like Dicks Sporting Goods, Marvel, etc. 3- First Marblehead. Fortunately, I pulled the plug fast enough so the loss has been moderate. 4- Fairfax call options when they were dirt cheap. It was by far the biggest opportunity cost, but I put it in the 4th rank since I do not like to speculate on short term price movements. Cheers!
  20. This is not a turnaround it is a rip and tear...something Fairfax excels at. That's a very good question Dazel, but it's not coming from the horse's mouth. That's something I would be glad to know. What is their plan? Keep the turnaround plan? Break it and sell the pieces? Lower the costs and press the lemon until no positive cash flow from operations can be extracted? A mix between those options? Answers from FFH would help to clarify the situation.
  21. Well, here is a comment from a doer about some turnaround situations ;) In the past, I've observed that many acquisition-hungry managers were apparently mesmerized by their childhood reading of the story about the frog-kissing princess. Remembering her success, they pay dearly for the right to kiss corporate toads, expecting wondrous transfigurations. Initially, disappointing results only deepen their desire to round up new toads. ("Fanaticism," said Santyana, "consists of redoubling your effort when you've forgotten your aim.") Ultimately, even the most optimistic manager must face reality. Standing knee-deep in unresponsive toads, he then announces an enormous "restructuring" charge. In this corporate equivalent of a Head Start program, the CEO receives the education but the stockholders pay the tuition. In my early days as a manager I, too, dated a few toads. They were cheap dates - I've never been much of a sport - but my results matched those of acquirers who courted higher-priced toads. I kissed and they croaked. After several failures of this type, I finally remembered some useful advice I once got from a golf pro (who, like all pros who have had anything to do with my game, wishes to remain anonymous). Said the pro: "Practice doesn't make perfect; practice makes permanent." And thereafter I revised my strategy and tried to buy good businesses at fair prices rather than fair businesses at good prices. Berkshire Hathaway 1992 Chairman's Letter
  22. I'm not a contrarian, neither a follow-the-crowd kind of investor. The crowd can be right and the crowd can be wrong. You have to have faith in your own judgement. Regarding that Blackberry possible acquisition, a lot of scenarios (and mixes between them) can come up: - Liquidation: cash and short term investments plus intellectual property? An asset play? I would be surprised if that would be their plan. (Prem comments, past FFH history, etc.) - Turnaround: Possible, but it's very difficult to predict the outcome. You can think about what's happened with Apple since the 2000's, but you can also think about the toads that are on the backyard of many managers who tought that their magic kiss would change toads into princess. - Keep the costs down and take cash from the latest version of Blackberry until it dies. - Another scenarios? But, at first glance, it seems like a major cigar butt. But unlike insurance, it's easier to control the costs if things turn up badly. Well, it's too soon to me to decide what will I do with my FFH shares. But, as a shareholder, since it would be a major transaction, I think it's very fair to ask what is their own view, and clearly.
  23. Peter Eavis, where are you? ;)
×
×
  • Create New...