New Prem Interview!

[oldye]

http://network.nationalpost.com/np/blogs/francis/archive/2009/10/30/smartest-guy-in-the-room-on-markets.aspx

 

Ironic title not withstanding,

 

Cheers!

[ERICOPOLY]

Looks like they still plan on holding Wells Fargo for the long term  :)

 

 

“We like the stocks that we have such as Johnson & Johnson, Wells Fargo. Our thinking is that the stronger get stronger and good management will prevail. Look at the commercial/industrial mortgage problem. There are 100 regional banks in this and say they all go bankrupt. That means there’s opportunities for strong banks like Wells Fargo who can buy regional or smaller banks for nothing.”

 

 

[ourkid8]

Let's not forget as of Q2 2009 Fairfax holds 69,039,426 shares of USB.  USB has been making numerous FDIC assisted deals along with picking up the pieces of companies in dire need of cash!!!  Just yesterday, USB acquired FBOP for next to nothing and is one of the strongest financial institution in the United States. 

 

"This acquisition is expected to meet or exceed the company’s internal financial hurdles for internal rate of return and earnings per share accretion." - This is music to my ears!!!  :) :) :)

 

Thanks,

 

S

 

Looks like they still plan on holding Wells Fargo for the long term  :)

 

 

“We like the stocks that we have such as Johnson & Johnson, Wells Fargo. Our thinking is that the stronger get stronger and good management will prevail. Look at the commercial/industrial mortgage problem. There are 100 regional banks in this and say they all go bankrupt. That means there’s opportunities for strong banks like Wells Fargo who can buy regional or smaller banks for nothing.”

 

 

[Partner24]

As usual, that's a good interview.

 

 

[Uccmal]

 

I just checked and FFH holds 16 million shares of USB, not 69 M.  For a total value of  350 M.

 

Agree its a fine position.  Pays a good and probably growing dividend as well.

 

 

The thing that I find most interesting is the Total Return Swaps.  I am just working my way through the quarterly report and I am amazed at the amount of detail.  They have disclosed how they get the prices of all of their positions in great detail and described somewhat how the total return swaps behave. 

 

If your a FFH shareholder or interested in the company read these reports in detail.  There is a plethora of risk management information, and investing strategy in each one.  This gang has moved far beyond the days of G&D investing into a whole different realm. 

[ourkid8]

Sorry, thanks for that correction... That was Berkshire's stake in USB....

 

Thanks,

 

S

 

 

I just checked and FFH holds 16 million shares of USB, not 69 M.  For a total value of   350 M.

 

Agree its a fine position.  Pays a good and probably growing dividend as well.

 

 

The thing that I find most interesting is the Total Return Swaps.  I am just working my way through the quarterly report and I am amazed at the amount of detail.  They have disclosed how they get the prices of all of their positions in great detail and described somewhat how the total return swaps behave. 

 

If your a FFH shareholder or interested in the company read these reports in detail.  There is a plethora of risk management information, and investing strategy in each one.  This gang has moved far beyond the days of G&D investing into a whole different realm. 

[oldye]

Graham did buy half of Geico for 750k  :o