gfp

On Crowdstrike claims - not material. Interesting that the patch was provided very quickly and these Business Interruption policies have waiting periods of 8-12 hours built into the policy language.

So the Compulsory convertible preferred Digit shares portion of the investment (separate form the 49% equity interest) will be marked to market, this quarter and going forward.

No surprise, Warren still selling BAC. Down to 12.14%. https://www.sec.gov/Archives/edgar/data/70858/000095017024089567/xslF345X03/ownership.xml

The beginning of Fed interest rate cuts. Ain't nothing good happened in my investing lifetime once that happens

What do the year 2000, the year 2007 and the year 2019 all have in common?

I would expect the results around 5pm eastern time, so a bit more waiting than that

Notice how these press stories don't say, "Delta hired David Boies to file an insurance claim.." ? https://www.cnbc.com/2024/07/30/crowdstrike-shares-plunge-11percent-on-report-that-delta-may-seek-damages.html

Bets on yet another Form 4 showing BAC sales dropping this evening? Say around 8pm Eastern time?

The way Bloomberg is reporting this, it sounds like it would apply to Keith Gill as well. Which is surprising to me. I wonder if the text below represents the actual case against Citron or if there is more to it. “Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money,” the Justice Department said in its statement. Left, according to prosecutors, would also quickly close positions after releasing a research report or making comments. That would let him take advantage of short-term price movements. According to the SEC, Left’s misconduct touched stocks including Roku Inc., American Airlines Group Inc. and Nvidia Corp. “This fraudulent practice deceived investors and allowed Left to use his Citron Research reports and tweets as catalysts from which he could derive short-term profits,” the SEC alleged in the complaint. The mere appearance of research from a prominent bear can send a stock into a tailspin before the market has time to debate its merit, which can be especially hard on small investors who can’t react quickly. Companies and shareholders have increasingly cried foul, prompting US congressional hearings.

That is an enterprise value with assumed debt and lease liabilities. Fairfax is paying $35 CAD per share for 35 million shares so 100% of the equity is around $890m USD. If you are going to use enterprise value, I would use something other than reported net income to see if it is expensive or not.

How do you figure they are paying $1.2 Billion USD for this?

Who knows... But it is important to remember that not everybody is like the nerds on this message board going through the 7 stages all the way to acceptance on the decision to buy a mattress retailer in a matter of hours. Some folks only hear about the mattress retailer a bit later and are slower to progress through the stages... (also Eurobank looked like it was breaking out and reversed lower instead. But the bull steepening in government bonds ought to be a big plus for 'em)

I think it falls under Cyber and not all Cyber policies cover non-malicious attacks. This is just a fuck-up. Not all fuck-ups are insured. That's what lawsuits against the vendor are for! edit: and if anything came out of the pandemic era lawsuits it would be tightened-up Business Interruption policy language. You want coverage for something non-typical BI? Pay for it a-la-carte.

He ran out of personal cash in the 70's at some point. He had come out of the Buffett Partnership wind-down with $16 million in cash but he used that cash to buy more Berkshire and Blue Chip shares. The first Laguna house cost $150k. He probably had a net worth between $25 and 40 million at the time Susie convinced him to buy that $150k house. He was only making $50k a year salary at BRK and he had a little bit of other income - but he was pretty tapped out at one point cash-wise. I think he bought the first Laguna house before he ran low on cash but I don't know for sure.

That is the enterprise value, not the cash outlay for 100% of the equity of the business. I'm not sure if they are including lease accounting as "debt" in that figure but the best I can see there are around 35 million fully diluted shares of ZZZ that FFH is buying for $35 CAD each. 35 times 35 is CAD 1.225B and that is around $890m USD

There is a paywall but the headline and beginning text cover the gist - Ajit is less aggressive in Florida this season: https://www.insuranceinsiderus.com/article/2dj4r5bh7hhbs81rl20hs/floridians/berkshire-hathaway-pulls-out-of-citizens-2024-25-risk-transfer-program?zephr_sso_ott=mGFXVh

Haha - that shit tickles! My wife still hasn't had COVID that we know of. Normal nostrils FWIW.

That's not what I was saying. I was saying the bonds were never callable.

Since we usually look at Fairfax's financials in US dollar terms - this is a cash outlay of like $890 million - $900 million USD right?

What is the fully diluted share count of ZZZ? Something like 35 million? I'm not sure I fully understand the convertible note with Casper.

Thinking more about Warren's recent BAC sales - it's interesting to look at what Warren is buying vs what Warren is selling. He is buying Chubb, with stable and negative funding costs ( -10% ) and selling BAC with +4.2% funding costs.

So this most recent BYD sale disclosure shows BHE selling about $358 million USD worth of BYD stock since mid June. The remaining position is worth around $1.7 Billion USD.

It seems like BAC is earning low returns and is getting squeezed between 5.15% on earning assets and 4.2% cost of funding those. So the trading and other non interest spread businesses are carrying more and more of the weight. Deposits aren't going anywhere but the yield spread on earning assets really isn't covering the overhead. With the stock trading up to a decent premium over book value and returns on that book value stuck in the regulated utility range, it just doesn't look great when you consider that whichever the next industry to blow up ends up being, the one thing we know for sure is that it will also hit their bankers. He can't use expected higher corporate taxes in the future as his excuse for last week's selling LOL

This article was pretty decent - https://www.reuters.com/technology/insurers-face-business-interruption-claims-after-global-tech-outage-2024-07-19/ Basically a typical commercial insurance policy's Business Interruption section probably doesn't cover this type of thing unless it was specifically added. And some cyber policies exclude non-malicious events. The article mentions travel insurance claims. Each affected business could sue Crowdstrike and/or Microsoft. Doesn't sound worth it. I'll bet in the long run this practice run prompts the industry to tighten up policy language and re-evaluate just how much damage a single vendor can cause with a single update. Could end up being a good thing for insurers.

Look at Warren! https://www.sec.gov/Archives/edgar/data/70858/000095017024085022/xslF345X05/ownership.xml