giofranchi

Well, imo basically no valuation can be done without defining: 1) The minimum return you require for an investment in equity for the next let’s say 20 years 2) The rate FFH will compound equity for the next let’s say 20 years I tell you what I do: 1) The minimum return I require for an investment in equity for the next 20 years is 9% If FFH compounds equity at: a) 9% annual: its IV is at least BVPS = 395 USD b) 10% annual: its IV is at least 1.2 x BVPS = 474 USD c) 11% annual: its IV is at least 1.44 x BVPS = 569 USD d) 12% annual: its IV is at least 1.72 x BVPS = 679 USD e) 13% annual: its IV is at least 2.06 x BVPS = 814 USD What will be FFH's CAGR in BVPS for the next 20 years? No one knows. You pick your number! ;) Cheers, Gio

+1 A good article! :) Cheers, Gio

I wouldn’t sell them… Instead, I would rent them! Like McDonald does. A hugely profitable business and potentially a great avenue for growth for BH! ;) http://nrn.com/blog/why-mcdonalds-wont-ever-get-rid-its-real-estate. Cheers, Gio

Great! ;) Thank you, Gio

Thank you! :) But why is he so out of shape?... He is not even 60 yet! --Lao Tzu, Tao Te Ching Cheers, Gio

And right now they are on the same side! ;) Gio

Why are they so long?! ;D ;D Gio

I am not saying: do it now!... Just keep in mind that's a clear opportunity that might be exploited at the right time: one of your largest shareholders (Ackman) clearly believes in VRX business model, and also happens to be one of the largest shareholders of ZTS... The stuff good deals are made of, isn't it? ;) Gio

+1! ;) Cheers, Gio

http://blogs.wsj.com/indiarealtime/2015/05/15/11-numbers-showing-india-has-a-long-way-to-go-to-become-the-next-china/ Gio

My pleasure! :) Cheers, Gio

Too expensive?... And why is Ackman still holding it?!... Let’s hope he figures out some way to create more value… Another collaboration with Pearson could certainly be very useful! But you are right: we will just wait and see. :) Gio

Veterinary?... Ackman?... Zoetis?... We will see! ;) Cheers, Gio

Hosington Management Q1 2015 Review and Outlook Gio HIM2015Q1NP.pdf

I think the greatest uncertainty with this kind of businesses, which make lots of acquisition with lots of debt, is that sooner or later the man at the wheel commits a major mistake… Such a risk is not "old fashioned" at all, like Ackman has recently called Munger, but imo it never goes "out of style" and therefore is very real indeed! On the other hand, the men at the helm of these so-called "platform companies" tend to be very disciplined and to never stray outside their circle of competence. And this clearly diminish the risk of any major mistake. ;) Cheers, Gio

In the Q1 2015 conference call Shiller has talked about a private company. Gio

This is a 180 pages long novel about every conceivable mistake the average man can do in both his personal and professional life. If Munger’s warning “All I want to know is where I am going to die so that I might never go there” resonates with you, [amazonsearch]Everyman[/amazonsearch] is a novel you don’t want to miss! Cheers, Gio

Valeant Pharmaceuticals - A Global Acquirer That Could Be The Next Berkshire Hathaway http://seekingalpha.com/article/3195106-valeant-pharmaceuticals-a-global-acquirer-that-could-be-the-next-berkshire-hathaway?auth_param=7i5hb:1almd1v:c21cd12e6146b48414a75209e69337c9&uprof=25 Of course, nothing new... Cheers, Gio

Q1 2015 Interim Management Statement Gio PSH-Interim-Management-Statement-Q1-2015.pdf

Probably, Watsa is comparing what’s given away issuing 1.15 million shares to what is gained, therefore he is dividing the $4 billion portfolio of investments only by 1.15 million of new shares… Just a guess! ;) Gio

He could have awarded himself lots of options, like practically every management on earth does… raising fewer questions, and doing much more damage to shareholders! ;) Cheers, Gio

If that is the case, business results will inevitably deteriorate. I will judge them as they come, and, if I don’t like what I see, I will change my mind about BH. Cheers, Gio

Of course, I think Biglari’s ambitions are… well, huge!! If I thought he were just someone who wants to steal some millions, buy a large yacht, and retire in some far away island… I then would agree with you and most board members! And I wouldn’t be interested in BH at all. ;) Cheers, Gio

Because over the long term I don’t think that’s how it works. And I bet Biglari knows that too. In the short run of course you had better put yourself in a position to receive a very good compensation, like Biglari has done, but in the long run you must build value, if you truly want to accumulate great wealth. Because that’s the easiest and safest way by far! In other words, why risking something else, when the most proven path for building personal wealth since Vanderbilt is compounding the equity of a corporation under your control? Especially because, if there is someone who has proven he could succeed in achieving such a goal, that someone is precisely Biglari? Cheers, Gio

A good enough article from Seeking Alpha was posted on the thread "Is it time to buy Fairfax again" just a few days ago. Cheers, Gio