Mephistopheles

It would have been incredible had this deal gone through. Master stock picker buys the most prestigious stock exchange.

http://www.amazon.com/The-Success-Equation-Untangling-Investing/dp/1422184234 This book was also on Warren's desk. Has anyone read it?

I would say probably not, because you'll need a counterparty willing to pay transaction fees to take on the worthless option, and nobody is going to do that, because even if they pay $0, it'll cost them commission. This is my best guess, sorry.

Smart guy, great investor, but a bit boring! I fell asleep listening to the presentation.

Hi, I'm trying to increase my knowledge of accounting so that I can understand how to interpret financial statements constructively. What books would you recommend I read in order to achieve this. I am currently reading Security Analysis 6th edition. Thanks

Oh ok, makes sense, thanks

Enjoy! At about the 2 minute mark he says they manage $6 billion at Baupost. I though they had over $20 billion AUM. Can anyone clarify? http://www.youtube.com/watch?v=TBiUm0ojcOA&feature=g-vrec

For me neither video 1 or 2 work

I sold way too early, at an average price of $8. :(

Yea it's a bunch of bullshit. With this rule, the rich can get richer, while those of us who are not millionaires have less opportunity to become one. Similar to options trading rules.

Not a small cap investor and this is slightly off topic, but just out of curiosity, what kind of annual returns have you experienced investing in the small cap space? I'm just wondering how much is the differential, if any, from those of us who like investing in larger companies (AIG, BAC, etc.).

For some reason I can't see it when I go to the site. I just see an ad for SmokeyBear. Try with a different browser. It did not work with Chrome but seems to work fine with IE. Thanks. It works on Mozilla.

For some reason I can't see it when I go to the site. I just see an ad for SmokeyBear.

True. Conversely, he said in the last annual letter that it is the best investment he ever made.

I think Buffett's marginal utility at Berkshire decreases every year as they acquire more and more companies. Berkshire's 70+ businesses have created a strong momentum that will be running strong well after Buffett is gone. These businesses also provide a large lineup of extraordinary executives who can be qualified to take helm at the top if necessary. With two great investors now helping too manage the investment portfolio, I don't doubt that we will see good investment returns moving forward. Finally, Howard Buffett as Chairman with a first class board of directors, Berkshire's culture will be preserved. IMO, the chance of Berkshire being a bad investment without Buffett going forward is virtually the same as the chance of it being a bad investment with him.

Fair enough. I should have added: make sure to have a large enough equity cushion/income in terms of being absolutely sure that you'll be able to pay off the loan. Like compoundinglife mentioned, ultimately it depends on how leveraged you are.

As long as you have a stable income to pay off the monthly mortgage, then I think it is almost guaranteed you will make borrowing at 3.875% and investing it in Berkshire at current prices even. Not all borrowing is bad. Buffett says you shouldn't be doing it because he's speaking to the masses. Most people shouldn't be borrowing money to invest. Think of it as opening your business with borrowed money. Or buying a house to put out for rent with borrowed money. It's the same concept. I would argue that borrowing at less than 4% to invest in Berkshire at these prices over a 30 year time period is safer than borrowing money for most other types investments.

You've inspired me, first with your FFH bet and now with this.

Up 37% YTD

Sanjeev, as others have said, thanks for everything you've done on this site, and I too have learned more here than I have anywhere else. Just wondering whether those of us who are registered users but not lifetime members, will we be charged as well?

Bought some as well, today. Do you see anything interesting with the options, ERICOPOLY?

Interesting thread. I don't have a short idea, but I have a question about lending shares. Is there a way for me to get paid when the shares held in my account are lent to short sellers, or is it only the broker that will make that money from lending my shares?

Thanks, this seems like an interesting idea. But I have a general question in this case. If someone has already written about it, like in this case, can I really talk about the same idea, even if it's paraphrased? Wouldn't I have to add something new and significant to a piece like this in order to keep it original?

Thanks for the ideas and gluck wishes, I'll try to look into all of them. Hopefully I find something simple and understandable.

The posting specified that they are looking for someone with little to no experience. They want a beginner. While I am a beginner in the sense that I am not great at coming up original own ideas, I have read Graham, Greenblatt, and others. I also read a lot of financial press, including the WSJ, and value sites/blogs. The stocks I usually invest in are ideas of famous investors (AIG, BAC, JCP), so I can't really write about them.