ericd1

I'm ok with BYD for the long haul too...but for a very different reason...If my memory serves me well the company has around 10,000 engineers. That's a huge number and a large number of them are working on new battery technologies. A breakthrough here could be huge...That said, my investment is in a similar proportion to BRK's.

I read HP is coming with a tablet to be released 1Q11. http://mcpmag.com/articles/2010/10/25/hp-ships-windows-7-based-slate-pc.aspx Excerpt from above link... Shortly after Ballmer introduced the prototype (Slate), HP, started releasing videos promoting the new device. The company went dark on its slate plans after announcing it was acquiring Palm Inc., for $1.2 billion and indicating it would release a slate based on Palm's webOS platform. Now the company is targeting its webOS-based slates at consumers and the Windows Slate 500 at business users. HP said it will release the webOS-based slate in the first quarter of next year.

Dodge and Cox Funds

I'm with you Packer nned more to invest...LOL...I'm happy with FFH, a few special situations and some themes...

Great post Ross...Thanks for sharing... I've been following a SSD company, STEC, Inc (STEC) -- They have a competing SSD technology and a "first mover" advantage. Their stock made a great run ($5 to over $40) last year, but has come back to reality ($13 w/P/E of 14x). Their SSD is designed to replace large enterprise (mainframe) HDD and they are working with the military on secure SSD products. They also have an "embedded" small form SlimSATA and SATA-CF, up to 64GB and 32GB..."Increasing demand for high-performance and high-reliability SSDs within the embedded markets is a trend we are beginning to see and on which we have put ourselves in a position to capitalize," said Manouch Moshayedi, Chairman and Chief Executive Officer of STEC. "The introduction of our new lines of small form factor SSDs for embedded applications is in line with our strategy to help proliferate the use of SSDs across a broad range of applications. Just as we have helped to usher in the use of SSDs in the high-end Enterprise market, we intend to bring the latest SSD advancements to our customers in the embedded community, many of whom have been long-time STEC partners." I don't think they are looking at consumer product applications, but rather the higher-end commercial SSD market. I have been watching the company on the sidelines thinking they could be a buy-out candidate, but I don't have the industry insight to know if my thinking is right. Appreciate your comments...

Best quote on the board in a long time!!!!

Thanks for the comments..I know there's a wealth of insurance experts here! I was reviewing several "value screens" and these popped up. Thanks pof for the lesson...I knew reserves would impact the scheme of things, but didn't really know what to look for...now I do...thanks...Both Mercury and Meadowbrook showed good growth in revenues and earnings (20%+ last 5 years), but if they aren't reserving properly there's a problem.

I've found a couple of companies that appear to be under-valued insurers, but I'm not very knowledgeable in this sector. Arch Capital Group (ACGL) 4B mkt cap - P/E 4.7x P/B 1.0 First Mercury Financial Corp (FMR) 185M mkt cap - P/E 5.5 P/B 0.6 Meadowbrook Insurance Group (MIG) 475M mkt cap - P/E 9.4 P/B 0.9 They appear to have improving operations, but perhaps I'm not looking at the right numbers. I'd appreciate any comments, or insight that can help learn about the industry. I'm thinking there may be an opportunity with one of these.

I would suggest that the average investor Jason is talking about isn't anything like the average investor on this board. His comments were likely directed at the "average investor" that numerous studies show achieves 50% to 75% of market returns. They buy near highs and sell when the market tanks. Those investors would benefit from a buy and hold index fund strategy.

I did a rough recap of the companies listed...There were 12 stocks, or options in three, or more portfolios. The average return of these top 12 have out-performed the market by a nice margin over YTD, 3 Yr, 5 Yr and 10 Yr. Here are top 13 BRK 14, FFH 13, JNJ 8, KFT 6, SD 4, SSW 4, BAM 3, Dell 3, LUK 3, PVD 3, SHLD 3, XOM 3 Top 13 Avg - YTD 4.6%, 1 Yr 7.2%, 3 Yr -4.6%, 5 Yr 3.2%, 10 Yr 8.7% S&P 500 - YTD 2.4%, 1 Yr 7.8%, 3 Yr -6.6%, 5 Yr 0.2, 10 Yr -0.8 The favorites BRK & FFH quite a bit better better Top 2 Avg - YTD 14.5%, 1 Yr 15.9%, 3 Yr 10.1%, 5 Yr 14.9%, 10 Yr 10.4% The numbers speak for themselves...

Did anyone short for an arb?

Perhaps a little heavy at 37% of equities, 17% of portfolio. But I sleep well at night!

Checking on the Baltic Dry Index this morning I noticed it's jumped quite a bit over the last two months--from a July low of 1,700 to 2,940. SEA, The Claymore Shipping ETF is up 10% and Seaspan is up 22% over the same period. Appears the global economy is strengthening!

I don't care about Rogers, just his commodity ETNs... Elements Int'l Commodity Ag TR - RJA +7.6% YTD Elements MLCX Grains TR - GRU +7.9% PowerShares, iPath and E-Tracs have a host of others, some diversified and others individual sectors... In case you missed it (I did) coffee has had quite a run this year JO is up 33.5%

Interesting discussion on agri investments. But if one believes in the future of the industry (scarcity, incr demand, etc.) and without viable investment options (cigar butt), why not consider the Rogers Ag Commodity ETFs or other ag related ETFs. After reading about Buffetts venture with silver (supply < demand = rising prices) it might be a viable alternative. In a way its an under-valued investment...

JEast, others... How does the DJ Transportation average measure up as an indicator of the economy? Anyone have the light bulb numbers? Thanks in advance

I had an discussion with my Fidelity contact today. Their trust services are limited to management and co-management of assets through Fidelity funds. They won't hold individual stocks in a trust account. I haven't called Vanguard yet, but I would presume it would be the same (using their funds). I have more research to do!

Like many here I'm a market junkie and avid reader of financial and scientific stuff...My lifelong hobby has been performing magic. I'm a member of local magic club and we perform benefit shows for local charities. I also make wine and enjoy the fruits of my labor. I retired early from a major US company four years ago and we are waiting for the teenager to graduate so we can travel!

Long- You might find this thread on portfolio construction of interest...

OEC - For me the money represented an opportunity to improve my life-long financial situation and I wanted to take advantage of it. I was motivated enough to earn an engineering degree and MBA, which helped my business career. I learned to appreciate the benefits of the income and knew the down-side to spending the principal. Unfortunately my sister didn't have the same appreciation. I don't believe the money will deter my heirs from employment, or ambition. Hopefully I have been successful in passing along the value of not invading principal. They have seem real life examples of both strategies and I hope they understand. However, things can always change. Sharp - You are right about the philosophical questions...I also hope I've passed along the concept of helping others. I didn't think perpetual trusts were legal...but it's an interesting idea.

I think Heely's and Croc's are similar - the fad is over and future growth potential is slim to none...which makes them worth pennies on the dollar...I pick up a cigar butt from time to time, but unless there's more to the story, I'd stay away. Tis only my opinion...

Beer - I was hoping to find a way to give them a chance to outperform the market. - Good balanced funds are certainly an option Bookie - Both FFH & BRK are on my short list

Basket of financial PFDs, PGF and bond funds - PHK, PFN, PTY FFH Emgr Mkts ETFs - EWZ (Brazil), BKF (BRIC), RSX (Russia), EMF, EEM China coal - YZC, PUDC Energy - SU, BBEP, EVEP, MLPL (2x AMJ) Infrastructure - BGC Bank/Finance - WFC, NICK, NBG, GLAD, ,PNNT Tech - ARAY, NVEC, BYDDF Ship/Trans - SSW, TRBR, TRMD, FLY Misc - LUK, GCE, PRM, GE Leaps, Rare earth mining basket

Sea - The problem with finding the good adviser is compounded with making sure there is a viable succession plan in case something happens to the adviser. That suggests to me a larger organization, etc. which might be terrific, but I haven't heard anyone make any suggestions who I might contact! OEC - Even exceptional companies rise, fall and disappear over time - Although I included a few on my short list. Myth - I see the situation as a challenge with two parts - #1 discipline to not over spend (a trust could enforce this) and #2 growing the assets. #1 is easier to plan and setup, while #2 is much more difficult. Bookie - Fairholme is on my short list - Remember patience is a virtue

Thanks for the ideas. The idea of reading this board daily was outstanding, but my heirs have not expressed any interest in investing, or learning about it. Maybe some discussion about learning and using this board would be appropriate. I agree with not using a retail adviser because good ones are so difficult to find. My family left me with a trust managed by a reputable bank. They pretty much insisted on investing in their trust funds, which was ok, but very conservative. I believe their strategy was more to conserve and protect than grow assets. I a teenager at the time and it was probably the right approach. Because of the situation I made the effort to learn about investing and glad I did. I like the trust idea, but have not done any research on trustees and investment flexibility. I was not aware of Vanguard's Services, perhaps Fidelity and others may offer something similar. I'll check into what they offer. For now I've prepared a short letter outlining an overall strategy with ~10 funds/stocks (the jockey approach), rebalancing and withdrawal suggestions. Thanks again for the ideas...