BBk.b or ffh.to

[ALLYCAT]

Hi All

With having to cash out my Northbridge shares I was wondering which offers the better opportunikty and safety at this time and these prices?

[Smazz]

If you can tell me what the future holds I can give you an answer ;D

 

But seriously, I dont think you will go wrong either way.

 

FFH has a much smaller float to invest - while BRK has alot of opportunities that no one else has.

 

Why not just split 50/50?

[ALLYCAT]

Thanks Smazz

That sounds like good advise.

[netnet]

Both are solid as enterprises, BRK would probably survive anything save the destruction of the US itself, FFH is not quite that solid.

 

Fairfax does not have the mortality risk that Berk has, i.e. when WEB goes to the great stockmarket in the sky, (or whatever euphemism one chooses.)  This risk is more on the market price.  The company itself probably will be almost as solid for years to come, but the stock itself will probably trade down significantly.

 

WEB is the best investor of the ______________(fill in the blank here) so Prem may prove to be as worthy but he has not yet. However, Fairfax has way, way more opportunities, e.g. a well placed 500 million (like the CDS investments) can really increase the value of the company.  A 500 million that turns into a 10 bagger barely moves the needle for BRK!  We are in an environment in which BRK will be able to place capital more advantageously than in the past few years, but it still needs to place large chunks into large businesses that inherently can not grow as fast as smaller businesses.