berkshiremystery

If you can't wait and have an amazon user account, you can already have a free sneak preview and read some chapters online right now with the amazon "search inside the book" feature below the book photo. ;)

[amazonsearch]Corporate Catalyst: A Chronicle of the (Mis)Management of Canadian Business[/amazonsearch] Anthony F. Griffiths, a director of the board at Fairfax Financial and a good friend of Prem has written a new book about him, Canadian business, Fairfax and his friendship with Prem Watsa. I already had the pleasure to have a sneak peak into the new book with the amazon "search inside the book" feature and enjoyed it very much. It also contains some nice pictures, also one of Prem with Tony together. I can only urge you all to buy it. It's money well spend. This book is probably one the best, and probably in par with the Cundill book, from the now 3 available books on the market that contain chapters about Fairfax and Prem Watsa. The other two books are: "There's Always Something to Do: The Peter Cundill Investment Approach" and "Selling America Short: The SEC and Market Contrarians in the Age of Absurdity". Publication Date: April 3, 2012 Product Details Hardcover: 320 pages Publisher: Wiley; 1 edition (April 3, 2012) Language: English ISBN-10: 1118152867 ISBN-13: 978-1118152867 http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1118152867.html ----------------------------------------------- Tony Griffiths will also be a speaker for "The Economic Club of Canada" at the Toronto Hilton, April 25, 2012 http://www.ecot.ca/speakers/Anthony_F._Griffiths

The treasury sold days ago some further 207 million shares of AIG for $29. AIG bought back half of this block (around 103.5 million shares). That’s about 3.5% of the currently outstanding shares, and they were repurchased at just over ½ book value. So this 3.5% buyback by AIG resulted in a 5.7% increase in book value for the remaining outstanding shares, with book value per share growing from $55.33 to about $58.52. Now we should wonder what the share price did after this repurchase announcement - well,... it languishes around at almost the same price as before, currently about ~$28 per share. We own AIG common and also the warrants of 2021, and I'm not bothered if AIG's share price might languish for some short while (weeks or months), as I would also want to quote Buffett from this year shareholders letter about his IBM investment. A share price that languishes some short term can be good for long term investors, because a company can repurchase very cheaply their shares. So in a good way AIG follows these smart steps. We also hold on to our much bigger position in BAC common, BAC A-warrants and the 2014 leaps ($10 strike) and we currently have no plans to sell as we think this is almost the same situation in comparison as with WFC in 1992 and the now legendary investments done by Buffett, Joel Greenblatt (founder of Gotham Capital and author two books: "You Can Be a Stock Market Genius", "The Little Book That Still Beats the Market"), and Bruce Berkowitz 1992 write-up in OID. But an investor should be wary after these significant run ups, that shares are less cheap, even with better earnings or balance sheets, so it's good to have some cash. ---------- AIG: Strong Upside Potential This Year March 18, 2012 http://seekingalpha.com/article/440591-aig-strong-upside-potential-this-year?source=yahoo Quoting Warren Buffett, "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well." ----------

I was surprised that Klarman mentioned the intellectually stimulating book "Thinking, Fast and Slow" from Daniel Kahnemann. I already had the pleasure to read it some while ago.

Certainly their flagship publication, which is the "The Value Line Investment Survey – Standard Edition" (approximately 1,700 stocks are covered: like all Dow and S&P 500 stocks and a lot of smaller companies and also a few foreign ADR's). "The Value Line Investment Survey – Standard Edition" is their oldest publication, dating back from the 1930's, it's the thing to have from them,... sort of like the the original Coke, the real thing. "The Value Line Investment Survey - Small and Mid-Cap Edition" was only introduced more than half a century later in 1995, as an attachment to their flagship "Standard Edition". In the "Small and Mid-Cap Edition" are approximately 1,800 small and medium-capitalization stocks, many listed on The NASDAQ Stock Market. I would probably estimate that they have their majority of subscribers in their "Standard Edition" and only a few take the "Small and Mid-Cap Edition". They also offer a few weeks as an trial subscription. hope this helps

Well,... I bought myself last fall an iPad2 (with 3G and 64GB memory). Since I am cheap and like to look for bargains, I had bought it on eBay for 20% off the MSRP. I'm addicted to use it to read annual reports and other research reports in PDF-format, and specially my Value Line Investment Survey digital subscription that I have for almost a decade. The only disadvantage is that Value Line uploads all the single research pages not in "one big PDF-file" that contains the whole week (130 pages or something). They are probably concerned about copyright infringement, so they have each week, 130 "single" PDF-files on their website. This is for me some troublesome work each week, clicking each week for over half an hour (with my mouse on 130 "single PDF-files", downloading them, sorting them myself, and putting them together in the right original lineup with a PDF editor software. I takes about 15 seconds for each file to click, copy and paste, and assign a file name, thus about 4 files a minute, 120 files in half an hour. After that I work another 20-30 minutes with some PDF editor software to bring them back into the original lineup of the hardcopy edition, part 1, 2 and 3. Currently, I have my 64GB memory about 1/3 full, with probably 500 to 1000 PDF files in my iBooks app (all BRK, FFH, LUK, BAC, old OID's, of course all Sanjeev's and Mohnish's partner letters, old Graham letters, Value insight, etc.)... and maybe over 700 apps (yeah, I probably only use 1% of them regularly, but I like to have all sorts of helpful apps just in case I need some search tools in case of some emergency).

the earlier annual reports are still on their web site. You just have to click on the annual report page at the lower part to find the link to the page with the old reports. Hope this helps. Anway, here is the direct link. Cheers! http://www.fairfax.ca/financials/annual-reports/Annual-Reports/default.aspx

What most people underestimate about Howard Buffett is that he also owns some small, but also sizeable personal stake in Berkshire that is worth over $200M (1,406 A-shares, and 300,011 B-shares). So he has a great personal incentive to keep his fathers values alive.

Guys & dolls,... calm down! ...you shouldn't thank Fairfax, probably more our board member "Morgan" ;) for linking the pdf file directly to this thread. You know I found this pdf-file accidently two days ago, while I was bored and googling, playing on my keyboard with some search strings. Probably also with the term: "Prem Watsa" filetype:pdf, trying to see, if there is anything new about him in pdf format. So the Google crawler algorithm must have found and indexed it somehow, despite there isn't any direct link on the Fairfax site. At least I couldn't find any. Thus I thought that this file might not be intended for shareholder eyes, and probably only for the internal use of employees. So carefully, ::) I tried not to link it direcly to this message thread. Well,... the virus of the mind of our naughty board member Morgan defeated my brave intention. ;D

The Fairfax Newsletter (Premier Issue: Vol.1, Issue.1, Winter 2011) Fairfax and Prem have just recently published their first company newsletter to all employees of the company. It's an inaugural issue of a newsletter they will publish on a periodic basis with two major goals. 1) Fairfax intend to promote a broader base of knowledge about the company to all of employees. 2) they seek to promote and facilitate greater cooperation and interaction across our group, between companies and among employees. And in future issues of the newsletter they intend to highlight centers of excellence within the group of companies. In the first premiere issue Prem talks about the company history and how they opened Hamblin Watsa Investment Counsel in 1984, and later bought control of Markel Insurance Company of Canada in 1985. He also talks about the more current economic situation. Prem says: We worry that in the United States there is no ammunition left for government to counter this debt build-up and its negative impact on the economy. Interest rates are already effectively at zero percent and there is no fiscal “ammo” remaining. In 2008-2009 the United States stimulated the economy with a lot of borrowed money, with little positive effect. Further U.S. fiscal stimulus in our opinion is not likely to occur because there is no political consensus that adding more government spending will ease unemployment or otherwise impact the current economic malaise. Europe has already approved austerity budgets to deal with its debt build-up and balance its books. Finally, in China there is a possibility that a major bubble in real estate may burst. At the end of the newsletter they have a review of their visit at The Society for the Care of the Blind located outside of Warsaw in Laski, Poland. Prem along with other executives from Fairfax and PolishRe, visited the school in Laski in early September of 2011 and donated about $150,000. ------------------------------------------------------------------------ Here's a photo from the visit in Laski. http://www.laski.edu.pl/files/DSC06210.JPG article translated with Google: Laski visited their benefactor, one of the richest men in Canada, Mr. Prem Watsa. Canadian Indian origin, came to a great fortune with his own work. Today Fairfax Holdings Company manages a large reinsurance company that is insuring the insurers. The company has branches in many countries, including Poland. Mr. Watsa offered a few years ago 150,000 dollars for the construction of the Centre for Early Intervention in Sobieszewo. Now we have to thank him. CEO of Society for the Blind Mr. Wladyslaw Dove medal presented to Mr Watsa Pax et Gaudium In Cruce . Mr. Watssa and the accompanying persons visited the Centre for Early Intervention, Home Girls, where he met a delicious lunch, then visited the Chapel of Our Central and Peace, where he signed the book. Met twice with our pupils from kindergarten to elementary school and middle school. Despite the rain, the visit was very successful. http://www.laski.edu.pl/aktualnosc,598,dobrodziej_lasek ------------------------------------------------------------------------

Buffett & Debbie Bosanek have been both together on ABC News a couple of days ago. here is the video: 2012-01-26 (2:53min) http://abcnews.go.com/GMA/video/warren-buffett-secretary-debbie-bosanek-interview-discuss-tax-rate-inequality-15446023 other shorter but more interesting version of the video,... worth watching: 2012-01-26 (1:17min) http://abcnews.go.com/Business/video/warren-buffett-secretary-talk-taxes-15442489?tab=9482931&section=1206834&playlist=1363932

Well,... there is an article from 2007 that says Debbie makes around $60,000. http://tusb.stanford.edu/2007/07/warren_buffet_has_a_lower_tax.html

Brian Moynihan at Davos: BofA Can Make a Lot More with Bloomberg Video January 27, 2012, 9:50 AM http://blogs.wsj.com/deals/2012/01/27/brian-moynihan-at-davos-bofa-can-make-a-lot-more/?mod=yahoo_hs

Now I really have to gawk,... that video is hilarious. I already know what question he will get at the next AGM,...lol,... probably some question if he has really some toy trains in his attic ;D Well,... I only have seen years ago some other home video that somebody close to him had uploaded to YouTube,... he was back then in pyjamas, singing and playing on his ukulele.

Some pictures from the event http://www.zimbio.com/photos/Jay-Z/browse http://www.strictlyhiphopnews.com/2012/01/19/jay-z-celebrates-4040-club-re-opening/ http://www.thegrio.com/entertainment/jay-z-launches-lavish-4040-re-opening-to-welcome-blue-ivy.php http://rapradar.files.wordpress.com/2012/01/warren_aj_rapradar.jpg

I like the Imvescor deal, it's a Graham's cigar-butt style stock -- just plain cheap. The share price has declined dramatically in the last year from $ 3.01 (Feb. 4, 2011) to a low of $ 0.20 (Oct. 7, 2011). Market cap - only 7.08M* Total shareholders' equity: 37.37M* (as of 3rd qtr. - Jul 31, 2011) so only about 1/5 of book value, the current market cap *source: http://www.theglobeandmail.com/globe-investor/markets/stocks/financials/?q=IRG-T&page=balanceSheet&frequency=QUARTERLY#financials-content I just went in a fast overfly for about 5 minutes, through some of the SEADR filings. I just wonder that i can't find any more recent balance sheet data of the fiscal full year. I just hope that i haven't wrongly stated the equity of about 37.37M (July 31, 2011). http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00029036 Now, I must add to my prior sentence, that this refinancing and recapitalization transaction throws baloney the last available quarterly report (as of July 31, 2011) with the stated equity and outstanding shares count. As it seems that these numbers should be significantly different. But it still seems that they probably got some favorable valued assets with the deal after the finished refinancing and recapitalization. Imvescor Restaurant Group TSX IRG-T 1 year chart http://img838.imageshack.us/img838/518/imvescor.png 5 days chart http://img217.imageshack.us/img217/3179/imvescor1.png <snip>... Under a previously announced agreement, Fairfax has agreed to pay 56 cents per Imvescor share for the stock that's not acquired under the rights issue before it expires Thursday. ...<snip> source: http://www.innisfailprovince.ca/article/GB/20111228/CP07/312289944/-1/inn0806/clarke-increases-stake-in-imvescor-restaurant-business-to-118&template=cpArt --------------------------------------------------------------------------------------- Here are two more articles about the Imvescor deal: Imvescor announces closing of Refinancing Transactions 29. December 2011 http://www.newswire.ca/en/story/900651/imvescor-announces-closing-of-refinancing-transactions Imvescor Restaurant Group announces refinancing and recapitalization transactions 14. October 2011 http://www.newswire.ca/fr/story/859259/imvescor-restaurant-group-announces-refinancing-and-recapitalization-transactions --------------------------------------------------------------------------------------- SEDAR filings: http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00029036 --------------------------------------------------------------------------------------- Imvescor Restaurant Group Inc. http://www.imvescor.ca/ ---------- more information about the Imvescor Restaurant brands: Pizza Delight http://www.pizzadelight.com/ Mikes http://www.mikes.ca/ Scores http://www.scores.ca/ Bâton Rouge http://www.batonrougerestaurants.com/

Wish you all a Merry Christmas and Happy New Year!

Anders,... Mohnish's real AUM numbers are published in his letters to partners. I have send you an IM, if you need further help. Cheers!

I just flew over your write up for 5 minutes. Well, done. You got my thumbs up !

Steve Cohen Unplugged http://tinyurl.com/bt98drf

I just read this thread and thought you all drank too much Kool-Aid,... Lol ;D ;D ;D

Oh, I didn't knew it took so long til the actual release. I had already seen the movie at the start of this year, about 10 or 11 months ago at a packed press and industry screening,... and had the pleasure to walk with Kevin Spacey and Jeremy Irons over the carpet,... but it will be more revealing to see what a average audience makes of it, because financial crisis stories aren’t exactly the kind of thing the paying public is going to run to see at the end of the week. I just looked into the box office data, seems it's not very popular to the main stream audience. http://www.imdb.com/title/tt1615147/business Anyway I shouldn't be up and posting here,... having catched the cold... *sighs.

Berkshire Buys $2 Billion Power Project as Buffett Wagers on Solar Energy http://www.bloomberg.com/news/2011-12-07/berkshire-s-midamerican-energy-to-buy-topaz-solar-farm.html?cmpid=yhoo

RE: Rain Maartens From South Africa -> behind $3 Billion BAC Offer http://www.cornerofberkshireandfairfax.ca/forum/index.php?topic=5732.0 Congratulations to "moore_capital54". He was right that this offer couldn't be serious. There you have it, IPIC Group withdraws $6 offer for BAC. http://www.bizjournals.com/charlotte/blog/bank_notes/2011/12/ipic-group-withdraws-6-offer-for-bank.html?ana=yfcpc

Value Line is probably the most influential research tool for Buffett, as he was quote saying,... it's an incredible value! ... and he doesn't know of another system that's as good. If Buffett is Yoda, this would be his light saber. Simple as that. -- I personally couldn't live without it, and it's my no.1 tool that I'm addicted to. Value Line has about 100,000 subscribers. The flagship tool is "The Value Line Investment Survey", that comes both as paper or online subscription, and paper also contains free online access. Most public libraries or major universities have them.