Ben Graham

Columbia Business School Professor Bruce C. Greenwald video: http://fora.tv/2009/02/07/Bruce_Greenwald_on_Value_Investing_Buy_Cheap_Obscure_and_Out_of_Fashion

[move]"Build a great IPTV service and the money will come...easy as that"[/move] Making money from an IPTV based multi-play service is easy, providing you deliver a “top-notch, no fault, high-quality service like we do, and deliver it beautifully" http://www.iptv-news.com/video/anders_brandt IPTV is broadcast's next power play Marc Goodchild, a UK-based cross platform expert who used to work for the BBC, says IPTV or Internet Protocol TV will take over the broadcast industry in the very near future. http://video.itworldcanada.com/?bcpid=7044989001&bctid=967867184001 Innovation for the next-generation French telco Bouygues Telecom has selected Wi-Fi technology from Israeli firm Celeno for the next generation of its 'Bbox' units, which combine IPTV, broadband and telephony services. Revolutionary wireless technology will enable customers to enjoy their HD content on multiple displays, without compromising on image quality and sound. http://www.iptv-news.com/iptv_news/may_2011_2/bouygues_telecom_selects_celeno_wi-fi_tech_for_next-gen_bbox

I'd like to include my two or three cents, as to what I believe is the primary lesson of this article. "Ingenuity" The greatest natural resource of all is the human mind, combined with a creative imagination or innovation brings forth ideas. Only two things exist: energy and matter. - Albert Einstein The brain is matter. To get ideas requires creative imagination which is energy that stimulates the brain.

Walter Scott, Jr. Biography Walter Scott, Jr. has made significant contributions to the construction, mining, power generation and telecommunications industries. A highly successful business executive and internationally respected corporate leader, Scott serves as chairman of Level 3 Communications and chairman emeritus and a director of Peter Kiewit Sons’, Inc. Scott graduated from Colorado State University in 1953 with a bachelor’s degree in civil engineering. Recipient of numerous honors and awards, he was named a College of Engineering Honor Alumnus in 1982. The university presented him with an honorary doctorate of science in engineering in 2003. Scott and his wife, Suzanne, are well known as philanthropists and advocates for higher education opportunities for young people. The Walter Scott, Jr. Scholarship Endowment at Colorado State University was established in 1982. It annually assists about 18 undergraduate students in pursuing their educational goals in engineering. Following graduation from CSU, Scott joined construction and mining giant Peter Kiewit Sons’, Inc. After assignments in California, New York and Ohio, he returned to his home state of Nebraska in 1964 to serve as a vice president and director of the company. He became president in 1979 and was named chairman of the board when Peter Kiewit died later that same year. Under Scott’s 19-year leadership, the company continued its growth and developed investments in energy and telecommunications. Before his semi-retirement in 1998, he engineered the separation of these new ventures from the historic construction and mining firm. The employee-owned Kiewit has continued its growth and is now ranked #238 on the Fortune 500 and #24 on Forbes’ Largest Private Companies list. The energy assets became MidAmerican Energy Holdings, based in Des Moines, Iowa and now majority-owned by Berkshire Hathaway. The telecommunications assets became Level 3 Communications, based in Broomfield, Colorado. In addition to serving as a member of the Kiewit and Level 3 boards, Scott is also a director of Berkshire Hathaway, MidAmerican Energy Holdings, and Valmont Industries. He is active in community affairs and a director or board chairman of a number of charitable and educational non-profits. On the national level, he is a director and former board chairman of the Horatio Alger Association and a member of the James Madison Council of the Library of Congress. Forbes Lists: #595 Forbes Billionaires http://www.forbes.com/profile/walter-scott #201 in United States #205 Forbes 400

Professor Bruce Corman Norbert Greenwald at Columbia University's Graduate School of Business needs to reassess his analysis of railroads. When asked, what do you think about Buffett’s purchase of Burlington Northern his reply was, "It’s a crazy deal. It’s an insane deal." http://www.gurufocus.com/news/120147/bruce-greenwald--what-say-you-now-about-buffetts-crazy-burlington-deal- I, Ben Graham, say that is blasphemy! Please give thought to the hidden asset component of a business. Among one of the hidden assets with railroads, is the buried fiber optic high speed railroad of broadband bits carrying content to all the eyeballs fixated on devices with screens. Level 3 Communications Signs Right of Way Agreement With Burlington Northern and Santa Fe Railway Company in 1998,which allowed the fiber optic company to build the majority of that network utilizing railway rights of way. http://www.thefreelibrary.com/Level+3+Communications+Signs+Right+of+Way+Agreement+With+Burlington...-a020821075 I think Warren Buffett has the insight fulness of how valuable those hidden assets are. Uses other than rail transport: Railroad rights-of-way need not exclusively be for railroad tracks and related equipment. Easements are frequently given to permit the laying of communication cables (such as optical fiber) or natural gas pipelines, or to run electric power transmission lines overhead. An easement is a certain right to use the real property of another without possessing it. Ever seen a train lay its own track? Watch this amazing video: http://www.wimp.com/traintrack/

Diversity Protects Ignorance Many people love to say “you need to diversify” to become successful, but it doesn’t make sense and Warren Buffett agrees. He said, “Diversity is protection against ignorance. It makes very little sense for those who know what they’re doing.” Rule #1 can never be left out The secret of Warren Buffett’s extraordinary success comes from his basic rule in investing: never lose money. Despite the simplicity of this rule, many Warren Buffett followers still find themselves losing money year after year. The reason is that many of these followers have forgotten the magic words of capital preservation: Margin of Safety By buying stocks that have an underlying value greater than their market price there is no way you can lose money if your research is accurate. Prices vary greatly in the short term based on factors you can not predict. As long as your valuation is correct, prices eventually reflect the true value of a stock and you will be rewarded for your diligence.

Warren Buffett has often said, "I could improve your ultimate financial welfare by giving you a ticket with only twenty slots in it so that you had twenty punches - representing all the investments that you got to make in a lifetime. And once you'd punched through the card, you couldn't make any more investments at all. Under those rules, you'd really think carefully about what you did, and you'd be forced to load up on what you'd really thought about. So you'd do so much better." Why? Too often investors throw money around like scattering seed, saying to themselves, "I'll throw a little here and little there to see what happens." Instead, Buffett advocates a policy of finding the best and richest soil, planting substantial amount of seed in it, and protecting it. This policy may sound simple, and it is. It also can be life changing. Lou Simpson, one of the best investors in the world and head of GEICO's equity portfolio, once said that this particular Buffett strategy helped him enormously in his record of crushing the market over several decades. I was down to my 19th punch on my card, so I looked for the best and richest soil to plant my seed money. So, I asked Howie Buffett if I could plant my LVLT seeds on his farm. He said, "sure, Walter Scott and his friends O. Mason Hawkins and Prem Watsa have already planted their seeds and they are sprouting very well now. They will offer you a good row cover for protection. You are welcome Ben Graham to use (3) acres." So, I went to Mr. Market and backed up my truck and loaded all I could. It was a very substantial amount. Then headed over to Howie Buffett's farm to plant my golden LVLT seeds. :) Level 3 Communications ticker symbol is LVLT

Coming this fall, your digital wallet. Visa wants to make digital payments easier. So it is developing a digital wallet that integrates all your financial information. You can make payments with the swipe of a button. You'll also receive security alerts and notices of sales. And it is accessible on any computer, smartphone or tablet. Will it become your next wallet? Watch and decide for yourself. Watch 2 min. video: http://www.tvkim.com/watch/964/kims-picks-coming-this-fall-your-digital-wallet

Demand for bandwidth video: http://www.youtube.com/watch?v=SIwpEoM0YcY

Another rare treat: the much admired Mr. Jain on stage with Warren. http://www.ndtv.com/video/player/ndtv-special-ndtv-24x7/warren-buffett-ajit-jain-answer-students/194516

Is Netflix Headed South of the Border? Will the number one ranked richest man in the world Carlos Slim, welcome Netflix? http://gigaom.com/video/netflix-latin-america/

According to a lecture given by Bruce Greenwald: Warren Buffett says that when he retires, there are three people he would like to manage his money. First is Seth Klarman of the Baupost Group, who you will hear from later in the course. Next is Greg Alexander. Third is Li Lu. Video Interview with Seth Klarman: http://www.valuewalk.com/videos-with-text-summary/discovered-video-interview-seth-klarman/