dcollon

dowfin, I think his suggestion is that Berkshire was destroying capital and if instead he would have started immediately with an insurance company they would have been growing capital/float while also compounding the capital they had. It would essentially serve as a multiplier to the number you highlight. Maybe others feel differently.

UPDATE 1-Buffett ups Munich Re stake above 10 pct, eyes more 4:06 AM Eastern Daylight Time Oct 19, 2010 * Buffett held 10.24 pct stake in Munich Re as of Oct 12 * Buffett plans to raise stake further in next 12 months * Munich Re - Buffett says stake financial, not strategic * No plans to influence Munich Re policy, strategy, dividend * Share rises 1 percent, insurance index <.SXIP> up 0.6 pct (Adds detail, background, Munich Re comment) FRANKFURT, Oct 19 (Reuters) - U.S. investor Warren Buffett raised his stake in reinsurer Munich Re <MUVGn.DE> to above 10 percent and plans to further expand the holding, Munich Re said on Tuesday. The world's biggest reinsurer said in a statement that Buffett's Berkshire Hathaway Inc <BRKa.N> <BRKb.N> had repeated its assurances in a letter, dated Oct. 15, that the investment was financial, rather than strategic. Berkshire also did not aim to influence Munich Re's management, its direction or the company's supervisory bodies, Munich Re said. "It is not intended to significantly change the capital structure of (Munich Re) ...in particular not with regard to the equity/debt-ratio or the dividend policy," Munich Re said in a summary of Buffett's letter. Berkshire intends to acquire further voting rights within the next 12 months, Munich Re added. Reinsurer Berkshire has been steadily raising is holding in its Munich-based rival since crossing the 3 percent threshold in January. Munich Re welcomed the continued investment. "We rejoice at every investor," a Munich Re spokeswoman said. (Reporting by Jonathan Gould)

txlaw, Thanks for posting. It was interesting to hear his comments on the "moratorium" in mortgages.

Here is an updated research piece just recently published http://www.kellogg.northwestern.edu/faculty/rauh/research/NMRLocal20101011.pdf

Interesting research from Kellogg (Northwestern) on Pension liabilities http://www.kellogg.northwestern.edu/faculty/rauh/research/JEP_Fall2009.pdf

Valid point Bronco and probably the reason bookie pointed out that Berkshire is not necessarily the preferred vehicle. Sanjeev, that's a great story. You have to love that invite. :)

True Myth, it would be designed for the audience, but one of my many concerns is that there aren't enough people thinking about trying to compound money for the long-term. In addition, all the benefits that accrue to the person and potentially society by saving and investing. I continue to think back to the I.O.U.S.A. documentary a few years ago and how little publicity that ended up getting. It should have been required viewing for the everyone. I was fortunate to be at the U of M meeting with Charlie and was able to ask him a question about the problems with pensions that we face. He didn't speak to my question as much as I would have liked, but it was still great to be able to ask. My question on pensions came from my overall concerns regarding the liabilities we will have to cover. I live in Michigan, so I'm kind of at ground zero. It was so fun being there. I have attended BRK & WSC meetings, but to be in the first row 15 feet from the man was great. I know I sound weird. He walked in with no security, just a couple U of M faculty. Li lu was there which was cool, but I'm not sure how many people knew who he was. Something I will never forget.

Does anyone follow RE closely? The press release today is intersting and wondering if anyone can guess as to the "issues behind the scenes" NEW YORK (Dow Jones)--Everest Re Group Ltd. (RE) President Ralph Jones, who had been slated to take over the chief executive job on Jan. 1., resigned from the company effective last week. Jones, who also served as Everest's chief operating officer, had been named as the successor to longtime CEO Joseph Taranto in July, with the end of the year set as the time when he would take over the top job. In a statement Monday, Everest Re's board of directors said that it asked Taranto to "reconsider his decision to retire," and said he would now stay on as CEO of the Bermuda-based company through 2012. "I am dedicated and energized to continue to lead the Company forward," Taranto said in the statement. He also said he wished Jones "the very best."

Sorry I should have been more clear. I would like him to explain why the tax free loan for the government (deferral of taxes) has worked so well for him and how the average person can try to apply the idea. I think this is the one area that the average individual (not people on this board) doesn't think enough about. I think returning his money to society via the Gates Foundation and his children's foundations is a great thing. They will allocate the money much better than the US government will. Again, I should have been more specific in my comments. Have a good day, David

Some interesting comments in an 8-K just filed: During the conference call with investors on October 7, 2010, Mark Sellers, Chairman of the Board of Premier Exhibitions, Inc. and Managing General Partner of Sellers Capital, stated that Sellers Capital is no longer marketing its 46% ownership stake in Premier. Mr. Sellers stated that Sellers Capital no longer has a specific time frame within which to sell its stake in Premier. Instead, Mr. Sellers indicated that Sellers Capital would retain its shares in the Company until such time as it could obtain what he believes to be a better value for the shares. This follows a previous announcement by the Company, made on June 21, 2010, that Sellers Capital was looking to sell its shares in the Company over the next twelve to eighteen months. Mr. Sellers indicated that this change stems in part from the August 12, 2010 order from the U.S. District Court for the Eastern District of Virginia determining the value of a salvage award to be issued to RMS Titanic, Inc., a wholly owned subsidiary of the Company. In that order, the court determined that the Company would be entitled to an award equaling 100% of the fair market value of certain Titanic artifacts, which the court determined to be approximately $110 million, for its work in salvaging and recovering artifacts from the Titanic wreck site. The court indicated that the award would be satisfied at some time in the future, either by issuing the Company title to the artifacts with certain covenants and conditions attached, or by conducting a judicial sale of the artifacts. Additionally, on the conference call, Chris Davino, President and Chief Executive officer of Premier, commented on the total possible value of all of the Company’s Titanic related assets and claims indicating his belief that, taken together, their total value could exceed $200 million. First, Mr. Davino reiterated the appraised values for the artifacts it has recovered from the Titanic, as well as the appraised value of certain of the data and work product associated with the artifacts. Mr. Davino stated that the artifacts recovered during the 1987 expedition, and for which the Company has clear title, have an appraised value of $35 million. He indicated that the remaining artifacts, which are the subject of the August 12, 2010 court order, have an appraised value of approximately $110 million. He indicated that the Company’s intangible assets, such as its digital and photographic archives, a comprehensive database and the Company’s work product (which includes undertakings such as the cost of salvage, conservation and exhibition), have been appraised as an additional enhancement to the artifact collection of approximately $44 million. Mr. Davino further mentioned his belief that the additional video, data and other intangible assets recovered from the recent 2010 expedition to the Titanic adds additional value to the Company. Mr. Davino further stated he believes the Company’s status as exclusive salvor-in-possession of the Titanic wreck site, including the right to recover additional artifacts in the future, adds additional value to the Company. Mr. Davino and the Company want to underscore that these values are based on appraisals and estimations of fair values that may or may not be realizable to the Company at any given time, particularly in light of the fact the Company does not have title to all the recovered artifacts. Any future disposition of these assets could be subject to covenants and restrictions which could be imposed by the court. Mr. Davino and the Company further wish to clarify that the Company is not engaged in any discussions with any third-parties regarding the sale of any of these assets. Finally, on the conference call, the Company identified S2BN as the party with whom, in the first quarter of fiscal year 2011, it executed a joint venture to develop new content. The Company indicated that entertainment promoter Michael Cohl is Chairman and Chief Executive Officer of S2BN.

The tough question surrounds his deferral of ever having to pay taxes on his berkshire investment.

I completely agree, it was a very good interview. I still wish someone would ask Buffett a tough question about taxes, but I doubt it will ever happen.

Since Sanjeev is too humble to ever mention it, I thought I would highlight one other comment made during the meeting. When Mohnish was asked about FFH he said that he wouldn't comment on it since it's an existing position (nothing new there), however he said that there was a guy in the audience that had FFH running through his veins and if there were any questions members of the audience should ask Sanjeev. Very impressive and as we know true. Great meeting and very enjoyable talking to the other members of this board before the meeting.

New one from Howard Marks http://www.oaktreecapital.com/Memos/Hemlines%20and%20Investment%20Styles%2009_10_10.pdf

It was the Marriott Suites right? Just want to make sure I'm thinking about the right hotel. 2pm sounds good. See you all then.

Sanjeev, I will be there again and was planning on meeting some people at the Marriott Suites. Is that where we met up last year? What time were you thinking about meeting? David

Guys, Thanks for posting the video, much better than the notes I was typing up on the airplane. Kind of funny to see my picture on the video. I was the one that asked about pension liabilities. Charlie made the joke that the groupies had followed him to Ann Arbor. As I orginally said it was a great two hours. Sorry for not getting the notes out before the video. I hate when work gets in the way of fun.

It was a great 2 hours in Ann Arbor yesterday with Charlie. I recorded the whole interview, but unfortunately I have to jump on a plane to Boston today and won't have time to type it up. He definitely is not as optimistic as Warren. He thinks there are still lots of problems to come/stay: Real estate, jobs, etc... Li Lu was in the audience sitting in the front row. It's interesting to me that he would make the trip with Charlie. It was a great treat. Fortunately, it was sponsered by the U of M Law School, so there weren't nearly as many people as I thought there would be, so I was able to sit in the front row and ask a question. Becky Quick did a nice job moderating the discussion. It was funny trying to watch her ask questions, as Charlie would pause, she would start to ask a question, then he would just keep talking about his previous point. Hopefully we will find a video of the conversation, but if not I will work on my notes.

The formatting is a little better here http://www.aar.org/newsandevents/freightrailtraffic/2010-09-09-railltraffic.aspx. The charts are at the bottom of the commentary. Thanks for highlighting in Sanjeev.

Thanks for posting the article. I truly enjoy reading Mike Lewis's stories.

I'm sure some of you saw this, but wanted to highlight the Bloomberg discussion http://noir.bloomberg.com/apps/news?pid=20601087&sid=aebGY6TctzTU&pos=7

Here is the link to the transcript in case anyone is interested. http://wealthtrack.com/transcript_08-27-2010.php

Interesting read http://cache.dealbreaker.com/uploads/2010/08/Third-Point-Q2-2010-Investor-Letter.pdf

txlaw, Thanks for posting the letter.

Bummer for those of us that liked to go to the Wesco annual meeting. I worry every year that it will be the last one I'm at and it looks like the 2010 will be the last one.