Prem thinks Berkshire has a better balance sheet than the US govt!!

[glider3834]

I am really pleased with Fairfax's move selling all its treasuries into Muni bonds 87% insured by Berkshire Hathaway. The yields are enormous - i also demonstrates Fairfax's growing concern that yields have to go up on treasuries - they are way too low- the US govt cannot continue to borrow infinitum into teh trillions and continue to pay 2.6-2.8% interest - the yield of over 5.5% on Munis is a much stronger risk reward proposition particularly when backed by Berkshire whose balance sheet is unquestionably strong.

 

The purchase of over 2bil in equities is also an excellent move

 

All in all I am pleased with Fairfax's investment strategy to a more offensive stance.

[oldye]

Actually as long as savings rate is going up in the U.S, there should be plenty of money available for the U.S government to borrow and maybe even refinance at low rates. 

[link01]

i'm pleased as punch too. i was especially interested to hear prem say in a recent interview someone posted here from the national post that he believed inflation was not a problem now but probably would be a year from now. and the big move by fairfax into munis 87% insured by berkshire is delicious!

[Mungerville]

Link01 - Can you point me to that article where he says inflation will be a problem a year from now?

[Mungerville]

OK - that was easy, I just found it!!!

[Guest ericopoly]

He didn't say inflation will be a problem a year from now.

 

"few" means three years (or is it 3+?).  Not "one", not "a couple", but "few".

 

Quoting:

 

It will be a worry a few year from now but not currently