buylowersellhigh

Bought some LMCA on Friday. Anybody buying any BAC common or KMI warrants?

Thought this was interesting considering the cash level they had in 2013 and the outperformance. Mentions Malone and company: http://www.valuewalk.com/2014/03/denali-investors-letters/

What puts did your write?

How are you buying depressed stocks w/o realizing profits on the IWM short? Are you assuming some unencumbered cash?

Surprised to see that the stake in GM warrants is so large...I knew he had the warrants, but didn't realize as of YE 2013, it was worth more than BAC.

EXEL

Packer, Would love to hear which ones you consider to be good compounders in a taxable account. I think PRAA will fit the bill and will continue to grow nicely. Love the management team there. BLSH

I believe for AIG and BAC, the 2016 leaps come out Oct. 14, 2013. You could get the 2015 and roll to the 2017 by the time 2015 come close to expiration....

Uccmal, Would love to hear your thoughts on Extendicare. Just came on my radar. BLSH

Anybody have links to the free notes for DJCO? I only see for fee notes.

How much of what you are doing is dependent volatility in MBI puts and/or what you think downside is in MBI?

Translation?

Yes, it does cost more to buy the deep ITM puts. However, by doing so, you are paying less for time value, which decays faster as you get towards expiration. This way you are essentially moving with the underlying with leverage.

Parsad, Any insights from Pabrai from the meeting? I know he doesn't like to talk about current holdings. Do you think it is Fairfax that he holds in his foundation's portfolio? -B

Very cool presentation. Thanks Parsad. What does the license plate translate to? COMLB26....compounding ..26%

So here is Pabrai's deeply undervalued fund: http://www.dataroma.com/m/holdings.php?m=PI

WOW!!

Thanks alot Grenville! Faster than head office and right off the transcript...how great is this board. Cheers! Parsad, What do you see as the future returns on Fairfax from here? From your posts, is this a long-term buy and hold position for you? Thanks in advance.

I would own a large allocation in Fairfax if I couldn't own BAC. I do have 25% in AIG warrants at the moment -- that's the only non-BAC thing I own. So if BAC were taken away I'd probably put 50% in FFH and buy more AIG warrants (to a 50% allocation). Eric, I am trying to get up to speed on Fairfax. The fact that you say that means a lot. Could you let me know why feel so strongly about Fairfax? I have read the Fairfax board. Obviously the lack of uw profits doesn't bother b/c you like mgmt, ability to allocate capital, etc.

So what are your expectations from Fairfax going forward?

One thing I am not fond of is the lack of underwriting profits. Sure you are betting on good capital allocation, protection to the downside, etc., but the lack of uw profits at an insurer bothers me. Not a big deal for others? Trying to dig into Fairfax...