Mephistopheles

I have nothing against Mohnish, I think he's great, and I've even met him once. I've always wondered though, why do people on this board knock Whitney Tilson for doing exactly what Mohnish is advocating (cloning), while at the same time they respect Mohnish? I personally don't think there is anything wrong with this strategy. It's not very creative, but at the end of the day these guys are responsible for safe guarding and growing OPM, whether their ideas are original or not.

I used to date a girl who would get turned on by finance talk. She herself was in finance, but knew little about investing. But she could listen to me all day and it would be sexy for her.

I think the total AUM is $25-30 billion. Equities, here it shows, is just under $3 billion. 7 million shares of AIG is $270 million. So about a 1% position.

According to the Grants Interest Rate Observer: Winter Break Edition, the average age is 11 years today.

Interesting, that is the exact same lunch I had today!

With the Dow at 14,000, I am curious to know how much cash people here have in their portfolios. I have roughly 30%, but can't figure out whether to gather more or try to find new ideas.

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.

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