txlaw

WEB on CNBC: http://video.cnbc.com/gallery/?play=1&video=3000148043 Btw, WEB mentions that they had about $27 billion in excess cash at EOY, and BRK is still looking for an elephant after this Heinz deal.

So did anyone follow Burger King before the buyout by 3G and after the SPAC acquisition? These guys must be great at getting operating metrics up for WEB to do this deal with a PE firm.

http://www.npr.org/2013/02/06/171177695/why-you-love-that-ikea-table-even-if-its-crooked

I haven't watched this yet, but I intend to when I get the chance: http://www.pbs.org/wgbh/americanexperience/films/silicon/

I used some of my DELL proceeds to buy the minimum amount of FAAFX. Bought both FAAFX and FAIRX for my parents and siblings. One thing to note about FAAFX is that a substantial amount of the portfolio is in MBI, so we could see some interesting NAV movement there in the next few months.

Yes indeed. He mentioned Otis Elevators as an example of a US manufacturing concern that actually had/has a moat. This was related to the question about manufacturing in the US. I found it surprising to see Gio post on Otis, when I had only heard about the company a couple of days before.

I probably should have quoted Gio's post. Nobody is curious?

NPR story on Greek asset privatization, where OPAP is mentioned: http://www.npr.org/2013/02/07/171294406/privatization-of-greek-assets-runs-behind-schedule And, btw, a fellow named mpauls (the guy who posted the Bruce B interview from Columbia) appears to be involved in OPAP. http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/opap-sa/msg25995/ http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/opap-annual-report/msg79912/ http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/greece%27s-debacle/msg47781/#msg47781 http://www.scribd.com/doc/55912797/Fernbank-Letter-to-EU-OPAP-05-18-11

I probably should have quoted Gio's post.

Guess what company Mr. Munger mentioned at the DJCO meeting . . .

I found this article from the Economist very interesting, as it gives some color regarding Bruce B's hints about JOE and the Panama Canal: http://www.economist.com/news/united-states/21571167-underinvestment-ports-and-inland-waterways-imperils-american-competitiveness-crying-out The number of ships calling at American ports is rising—by 13% in 2010 after an 8% decline a year earlier—as is those ships’ size: after expansion is complete in 2014, the Panama Canal will accommodate 366-metre-long ships with a 15-metre draft, compared with pre-expansion lengths of 294 metres and 12-metre drafts. The canal’s expansion will make it easier for Asian ships to reach America’s east and gulf coasts—home to five of its ten busiest container ports—and for American commodities to cross the Pacific. By 2030 “post-Panamax” ships are expected to comprise a majority of the world’s container ship capacity. And yet just seven of American container ports stand ready to receive such ships—and only one of these is in the South, where population growth is highest. Could JOE be Bruce B's BNI?

mpauls is the man. Thanks!

http://www.businessweek.com/news/2013-02-01/berkowitz-expects-watershed-2013-as-fund-wagers-on-mbia-sears

100% long here. Of course, I expect a good deal of cash to be generated from a DELL deal, as well as cash inflows from my current income.

Awesome. Thanks, BargainValueHunter. Oh, I didn't read that very carefully. Yeah, I second that request!

Awesome. Thanks, BargainValueHunter.

Reports for 2012 are up: http://www.fairholmefunds.com/reports

Reports for 2012 are up: http://www.fairholmefunds.com/reports

http://www.bloomberg.com/news/2013-01-31/california-general-obligation-grade-raised-one-level-by-s-p-to-a.html I believe FFH holds a bunch of CA bonds, and it might be the case that most of that position is insured by BHAC.

http://www.bloomberg.com/news/2013-01-28/general-growth-buys-warrants-from-blackstone-fairholme.html Fairholme did very well on this one.

Unless I'm mistaken, Bruce B is closing the Fairholme family of funds to new investors as of the end of February. http://www.sec.gov/Archives/edgar/data/1096344/000091957413000409/d1350636_497.htm Effective as of the close of business on February 28, 2013, the Fund will suspend the sale of shares to new investors, including new investors seeking to purchase Fund shares directly from the Fund or indirectly through financial intermediaries. Subject to the rights of the Fund to reject any order to purchase shares or to withdraw the offering of shares at any time, shares will remain available for purchase to existing shareholders.

Pretty interesting. http://video.cnbc.com/gallery/?play=1&video=3000144107

What if they kick it farther a 100 years down the road and in the meatime society changes enough to accept immigration? The fact there's so much wrong with this country also means it's easier (in theory) to fix. Let hoards of willing, hard working immigrants in, let them raise productivity and carry the burden of the pensions. (this seems to be Plan F in Japan, current Plan A is Robot Overlords, at least according to various anime movies.) I also think there's a bit of a difference between this and 2007, in what led to 2007 many of those in power did not realize what's actually going on, while in Japan these days they are consciously kicking the can. I've wondered about this too. Bass plays up the xenophobic and homogeneous nature of Japan. Others say that Japanese business is not entrepreneurial enough. But could it be possible that times will change while this inflationary policy does whatever it's supposed to do? Culture could change. Energy costs could come down. New generations of business people who are more entrepreneurial might take the reins. Immigration and globalism, again, could be adopted by the younger folks. I would agree with the poster who said that the way to play this, so to speak, is with the Yen devaluation. In that respect, I think it makes sense to try to find Japanese companies with sound balance sheets that export unique or very high quality products that you pretty much can't get from other places. Haven't really done any digging, though.

Interesting. Tepper talks about looking at any five year period of Appaloosa for judging performance. Bruce B said the very same thing in his interview on Wealthtrack late last year about Fairholme. I wonder if there is a precedent for that statement among the Buffett Partnership letters. Does anyone know?

A nice little summary of the new Japanese prime minister's focus on money printing: http://dealbook.nytimes.com/2013/01/22/back-in-power-abe-aims-to-spend-japan-back-to-economic-vitality/ The critics: For Mr. Abe’s critics, his pump-priming could energize markets and buoy the economy in the short term, but would eventually push Japan even further toward the fiscal brink. Interest rates may be low now, they say, but will rise with inflation — or even spike — if investors start to question the effectiveness of Mr. Abe’s growth policies or grow too jittery about government debt, which is now more than twice as big as Japan’s entire economy. Even a moderate rise in interest rates, critics warn, could weigh heavily on a debt-servicing burden that already makes up a quarter of Japan’s annual budget. The country’s widening trade deficit and a graying population that is eating into its savings are further worries. The supporters: Mr. Abe’s supporters, on the other hand, argue that Japan will better stoke investor confidence by finally beating deflation and generating growth, not by simply tinkering with budgets. Those advocates, referred to as the reflation school or “refle-ha” in Japanese, argue that aggressively aiming for a healthy level of inflation targeting — and the weaker yen the policy has already brought about — will galvanize exports, revive production, spur profit, expand employment, raise wages and drive up tax revenue in a virtuous cycle of growth, one that will more than make up for the higher debt-service costs. Moreover, if there is moderate inflation with no large rise in borrowing costs, Japan could inflate away some of its debt, they say. Leading the charge on the economic growth front is a star-studded panel of eight chief executives and an academic who will join cabinet ministers as advisers on bolstering the country’s competitiveness. Kyle Bass says the end is near for Japan and, therefore, avoid equities there. Meanwhile, Tom Russo, Pabrai, and Guy Spier appear to be putting money into Japan. So a question for board members: Which side do you fall on? And, btw, I don't want to read any answers saying too hard or I ignore macro or why not invest in the US instead or whatever. Those may be fine views to have, but I'm more interested in seeing what people actually think about the Japanese policy.