Valuebo

They are hedged but nothing more (or maybe 5% extra now). I would a agree that it would be good for FFH if they didn't have equity positions but they have. So all in all it's not that great. In fact, treasury yields went up which is bad for the position FFH holds so it probably was a down day for them as well. Just saying, nothing of this short term stuff really matters anyway. ;D It's funny to see these topics come up when FFH moves up 3-4% in a day, seems like no one is used to it for FFH. ;)

This one is "great" as well: http://www.uticaod.com/business/x1481615241/Jim-Cramer-Apple-doesnt-need-to-pay-a-dividend So basically, if you grow fast enough, you don't have to care about the growing pile of billions doing nothing on your balance sheet, fuck capital allocation. 8) What he is saying... it's almost unbelievable. He's rambling about the fact that BRK itself should distribute a dividend, forgetting that the issue is about proper allocation of excess cash and not cash that actually turns in more than a dollar over time. I'm starting to get more and more confident that defeating the market isn't all that hard if you have the right temperament (and reasonable intelligence, people/books you can learn from,..) when you see people like Cramer posting such dumb things.

I read it as well. Thought it was a great read. Imo it can't hurt to get a good idea of extreme economic conditions and the emotions, financial consequences,.. that come with it.

Thanks Farnamstreet! Brrrr... Jobs and his Ego, two very good pals... :-X

Already retweeted you, thanks!

"Berkshire Profit Drops 30% on Smaller Gains From Buffett’s Derivative Bets" => BRK -1,5% http://www.google.com/finance?q=NYSE:BRK.B Would love to pick some up again if it hovers above $73 (110% of book).

Isn't this just a collection of the shareholder letters? Or am I mistaken?

This letter is a bit of a rehash but I guess that's my own fault considering everything I have read about the man. Still a good read. It is my understanding that, should we see "particularly weak markets", the market will offer him even better ways to allocate capital elsewhere. That is my understanding as well. Particularly weak markets such as Fall 08 offer much better investment possibilities as Berkshire will still be viewed as kind of a safe haven. Just that he won't buy every share available at a certain price. Instead, he'll wait to try to buy cheaper. Makes sense to me So.. Buffett is going to time the market? :-X

Hi racemize, I think you forgot to make the pdf public, I can't open it now. TIA from another OCD patient ;)

Does anyone know more about DJCO? Portfolio of securities is probably worth somewhere around $80m now, earnings seem reasonably stable and market cap is only $102m. How about it's chairman, J.P. Guerin? I'm going to look into it asap.

http://www.nasdaq.com/reference/ownership.stm Pretty good, takes a few days to get updated after 13F's come out. Datorama normally is very fast. http://www.dataroma.com/m/m_activity.php?m=brk&typ=a

Must have been hard Parsad. But looks like you all turned out ok in the end. :) Jup, I know it is important as sort of a 'ticket' and that's why I'm biting through. It just doesn't tell the whole picture in my view and sadly a lot of people aren't half as qualified as you would expect them to be considering their education. In any case, I'm really looking forward to working full-time and learning more interesting things on the go. I'll get my value out of my education one way or the other!

It's almost like I'm looking in a mirror! Great and interesting story! Yup, pretty much the same. I remember I was in my last year of University, and my Dad had just died. I didn't like being up there at the campus, as he worked there and I would see him every day. Just the same memories every day! In my lectures I would be reading investing books, and then just showing up to write the biology, biochem exams after cramming and memorizing the entire textbook a week before. My mind was completely elsewhere. I quit shortly after that to go work, because I felt I needed to help my Mom and 9-year old brother after my Dad died. Now over 20 years later, I cannot put investing books, 10-Q's, 10-K's, articles on investing, etc down at all. Crazy! I think part of it has to do with the school system not recognizing and nurturing the interests of students. I was always interested in money...even as a young boy. I like the idea of creating schools that hone a students keenest interest. Allow them to study only that subject at their own pace. I've read and studied more on my own, than I ever did in all my years of formal schooling. Just never the subjects I was being taught in school! ;D Cheers! Tha, I have exactly the same feelings toward formal schooling and my relationship with it compared to what now feels like my true passion. While not comparable to your story, I feel like this school system has numbed me in some way. Knowing what I know now I wouldn't have started my higher education. Hoping to learn more on business, accounting and economics I got terribly disappointed. Most of what I learnt was about law, insurance (which was "ok") and very basic classes on subjects that interested me only a little. The first year was managable, but in the second I read Graham and Buffett and I got hooked! Like you said, from then on my mind has been elsewhere. Tbh, the "big" portfolio gains haven't been helpful either in keeping my intrested in dull classes. I could have spent that time earning money and learning more of what I really enjoy, but it is too late to quit now as I have only one semester to go without any classes (not that I ever attended any...). So in the meantime now I can work on growing my capital. :D And any work will do, I'm not picky. As only work for an independent mutual fund or as an entrepreneur (to give two examples) would give me satisfaction, the other options are like choosing between the plague and cholera. I'd almost rather do a simple job and use the rest of my time efficiently than doin an unfulfilling harder job that pays more but requires a lot of time and effort that I could use for something else. Does that make sense?

It's almost like I'm looking in a mirror! Great and interesting story!

Lol, Ben Graham's posts about IV and MoS make for such an obvious message that it is starting to irritate me as well to be honest. Especially in combination with all this attention drawing. I'm also quite sure everyone here knows what value investing is by now, there is no need for a parrot on this message board making topics about almost irrelevant subjects or the most obvious lessons. I'll assume it's well-intended... (In that regard I also don't understand why topics such as 'what phone should I buy' are relevant to this forum, not that this was Ben Graham's initiative.) Had to mention that once. I have no personal beef with any of you. :) And to respond on your personal message, Ben Graham; No, I did not buy LVLT dollars for 20 cents yet, nor do I intent to. I'm not sure what led you to believe I ever would? ;)

Was trying to do the same here with other stocks, waiting to put it all in AIG and BAC when they cashed out. Investing is a game of regrets, balancing what and when to buy and sell. If I did not buy BAC and AIG at those prices, and many in this board probably thought the same, and they run afterwards, as it happened, I would have kicked myself for eternity. Some stocks are on third, others on second, all ready to run to home. But it is hard to predict which ones are going to get their single first. Did I get my baseball right? "Investing is a game of regrets." Well said! Exactly my reasoning for not putting it all on one or two stocks, even if it has more (assuming we can measure it) upside potential. If your "one pick" lags all your other high (but lower in comparison with your best) conviction stocks, you have a huge opportunity cost. I'd rather spread my bets at least a bit for that reason.

Still...that's like calling a bottom on the Dow at 10,000 and then it falling below 8,000 in the next couple months. My point is more that people shouldn't judge positions based on a very short term move in the stock price. That would be a pretty good call if the Dow came from 25,000. :) (edit: woops, too late!) But you are totally right on the second part, I agree. We'll have to see how it turns out but I do believe there are near term catalysts and that BAC is sufficiently armored against possible bad outcomes. Overall, I felt saver with BAC at $5 than now and will be glad to liquidate some of my position around TBV.

Ericopoly = Arnold Rothstein from Boardwalk Empire 8)

;D ;D Why only BAC? Something on sharp price movements. I hope this happens with all stocks so I can pick my spots and wait .... http://finance.yahoo.com/news/why-bank-america-citigroup-080559149.html;_ylt=Aj5Ivuh8nis5aIinMavDCRWiuYdG;_ylu=X3oDMTQzcDUxZHBoBG1pdANGaW5hbmNlIEZQIEp1bWJvdHJvbiBMaXRlBHBrZwNjMWJkMTYxOS00MGJmLTNmMTgtYWM1Mi1iOTc0OGEyNWI4YTQEcG9zAzEEc2VjA2p1bWJvdHJvbgR2ZXIDNWVmNmE2YTAtNTNiZS0xMWUxLWJmZGQtZjcyMjJlZDhmYjU1;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3 I'm confused by this: If high-frequency traders stopped flocking to it, then why is Citigroup's volume still the same in terms of dollars (50m x 10 = 500m)? :-X Or do they simply mean that Citigroup's stock exposure to those HF traders didn't get any bigger despite the growing activity in this field. Just wondering. :P

Thanks! I'm guessing he's not a Level 3 customer. Haha. ;D

Seems like a lot of people are watching, takes forever to load!

24-25% since January, 33% since my start in 2011. Zero leverage, although not buying TARP warrants at the lows was my biggest opportunity mistake. I still believe it is very likely that the B warrants on BAC will prove to be a very lucrative investment. I have 25-35% profits on things like LUK, C and BAC (and of course a lot more when looking at my lowest buying point) where Munger basically said he wasn't going to touch them with a ten-foot pole. Uncertainty is beautiful. Not willing to sell anything just yet. Would need to see substantial gains in my financials from current levels to take some profit there. I'm 22 moore, so not all 'youngsters' are doing poor and timing the market. ;)

I believe this post deserves some attention and credit: http://gregspeicher.com/?p=3876 Great job by Greg Speicher. I especially like number 115.

Absolutely right zgrendi. I also think that thought is true in general; people are overestimating the importance of the current equity positions for FFH and underestimating the true future force of growth that lies in insurance. Just my opinion... I love having FFH in my portfolio as I see it as a great addition. They invest in things that I wouldn't touch with a ten-foot pole.

Ben Graham, I don't generally like to disclose such information -- not just publicly, but to anyone. I feel that doing so invites push back from people in way that pollutes my own thoughts about IV, particularly because I tend to think of IV within a range of values based on certain key variables and my own assessment of the risks associated with ownership. Also, for me, IV is a moving target that changes when I get new information, so it doesn't make sense for me to say it out loud and face the risk of anchoring myself to my declared IV. [move]* GREAT post! *[/move]