giofranchi

Surely you did… This doesn’t mean that your answer wasn’t out of context with what I was trying to point out! What can I say… You are a more ethical person than I am! ;) I think both things are smart! If you don’t put me in a corner, I won’t use all the weapons at my disposal (ethical or not) to do what I think is in the best interest of BH for the long term. But, if you put me in a corner instead, I won’t depend on your kindness. I knew someone would have pointed out an inconsistency here, but imo there is none. Gio

Gio New-Position-Release-3.9.15.pdf

Ahahah!! You are right!! Bread and pasta and gelato in Italy are truly delicious! And I love them very much! And the great majority of people actually cannot stop form eating them! But you know what I am realizing more and more as time passes? I have still to find something my will cannot control. I don’t know why for me it is so easy, while most other people seem to have such an hard time controlling themselves… But the fact still remains: when I set myself on doing something, I just do it… when I set myself on quitting something, I just quit it… Boring?… Maybe!… It has its advantages too. ;) Gio

What about engineering the friendly acquisition of Zoetis by Valeant? Zoetis is a $22 billion company in market cap with almost $5 billion in revenue, and it is the largest manufacturer of medication for pets and livestock in the world. Ackman describes Zoetis’s portfolio as “highly durable and diverse, not subject to high levels of generic competition”. Do you think animal health could be another interesting platform for Valeant to develop? Gio

You mean eventually swallowing the new AGN-ACT? I'd certainly love to be a fly on the wall next time Ubben and Ackman meet... or selling it to act, and spinning out a small vehicle for pearson to do his thing again... Ah! That would be fantastic! ;) Gio

Mmm… I think Watsa is talking about the long term investors in Fairfax India, not Fairfax Financial, when he says the fees are very fair… Don’t you agree? ;) Gio

If this is true, I am now a larger shareholder of VRX than I had thought! :) Gio

-- Prem Watsa 2014 AL Am I wrong if I say The Lion Fund might be even cheaper for BH shareholders? Because BH shareholders don't pay the 1 1/2% fixed fee? Gio

Another thing twacowfca, have you read [amazonsearch]Should We Eat Meat?[/amazonsearch] by Vaclav Smil? If so, what do you think about it? The whole Smil's body of work has been greatly praised by Bill Gates. :) Gio

Wow! Thank you very much, twacowfca!... That study on the effect of resveratrol in mice is alarming indeed!... Guess I have to quit supplements (with the exception of vitamin D!). And thank you for the recommendation of Blue Zones by Dan Beutner, I am ordering it on Amazon right now! :) Cheers, Gio

twacowfca, let me know if I have understood what you are saying well: are you against the consumption of meat? If so, any kind of meat? Red and white alike? Furthermore, I would like to know what you think about supplements: I regularly take resveratrol, omega 3 fatty acid, probiotics, and vitamin D. Should I stop? Finally, what’s your view on fasting? Thanks, Gio

This is a very reasonable request from Gabelli imo! After all the Lion Fund holds BH shares on behalf of all the shareholders, therefore each shareholder should be free to express his/her vote through the percentage that belongs to him/her… This being practically impossible to do, I also think the fairest way would be the Lion Fund shares (those belonging to BH) abstained from voting. Gabelli seems to be an intelligent man. :) Gio

I just threw up a bit in my mouth Ah!… But mateo999, you understand that the chances anyone on this board will achieve in business during his/her whole life what Biglari has achieved at 38 are not many, do you?… Biglari is an outlier, a top performer… And imo there is no way of knowing exactly why. All we can do is just to recognize a great entrepreneur, when we see one, and to invest alongside him/her. Then, of course, you might not like many things about Biglari, as the members of this board always remind us with great solicitude, but you should know by now how I approach the matter: as long as Biglari’s character peculiarities don’t make him irrational in his business dealings, I will accept them. Gio

I thought you were talking about the probability of having or not having a Q&A session with Biglari at the next AM... Wescobrk said we will always have a Q&A session as long as Biglari is CEO... You have commented there is the chance Biglari won't be CEO anymore... To your comment I have simply answered I think that chance is very small indeed, and therefore the probability of not having a Q&A session is very small... That's all! Ah! Of course I also added why I believe Biglari will go on being CEO, and therefore will answer shareholders' questions. Cheers, Gio

I guess the point is that he will not know for sure if he is CEO when the Q&A is supposed to occur and if there were any chance he wouldn't be, they may change the format. Listen, what I truly believe is that we can talk about Buffett and Watsa as long as we want, and yet we will never get the ability to reproduce their results ourselves... Idem for Biglari during the last 15 years!... All this talk about him not being CEO anymore simply doesn't make any sense to me... I am sure BH has very savvy shareholders, who recognize a rare and precious thing when they see one... And won't vote against Biglari. Gio

No one seems to point out how much a stock market crash would be defletionary at this point... When monetary policies have influenced the economy so much, it will be a stock market crash that causes a recession, not the other way around... Gio

Thank you twacowfca! My experience is that, since I have stoped eating pasta, bread, and desserts, I can shape my body much more easily and effectively, and I can run faster and longer than ever before! ;) Gio

Moreover, I don't know if it makes sense for FFH to go on hedging their stocks portfolio... But it surely is very useful for me! At this point in the market cycle I am very happy to have half of my portfolio in businesses that will do very well, if the market goes on undisturbed... And the other half invested in FFH that will do very well if the market starts going south... In other words, I don't want FFH to only be "protected"... I want it to actually make lots of money in a market crash! And imo that's exactly how FFH is positioned today: it will make some money as long as the market keeps going up, and it will make much more when the market starts to turn down. Gio

Twacowfca, Have you read [amazonsearch]Brain Grain[/amazonsearch] by doctor Perlmutter? If so, what's your thought on it? Thank you! Gio

I also think that in retrospect equity hedges will be seen as a big mistake... This doesn't mean it makes sense to take them away now, in the 7th year of a spectacular bull market for stocks, with global deleveraging that still has to begin, economies burdened by massive debts, and the Shiller PE of the S&P500 fast approaching 28... Gio

He is the Gandalf of modern finance! ;D ;D ;D ;) Gio

I think you are right! ;) Gio

This is very true and I agree 100%! :) The last two relevant examples, though, show that things can change: Allergan was purchased by someone else, and Salix received an offer by at least two other companies that I have heard of… Gio

I am reading [amazonsearch]The Hard Thing About Hard Things[/amazonsearch] by Ben Horowitz. A useful book for entrepreneurs, businessmen, and investors alike. Highly recommended! :) Cheers, Gio

Watching from the sidelines at the “struggle” with Allergan in 2014 and all those attacks on VRX’s business model, I think I have gained confidence in the following: With the exception of too much debt, which may cause trouble anytime, VRX’s business model will continue to be greatly successful for at least the next 5 years. Because: 1) The lifecycle of their existing products is never shorter than 5 years (sometimes it might be quite longer), and therefore for at least that period of time organic growth should continue to be satisfactory enough. In fact, VRX has responded to all the attacks on its lack of organic growth with very convincing numbers! Therefore, imo their existing products have proven they can grow (anyway, like I have said, I am gradually building a new position in VRX, because the more evidence I get the better! And the next two quarters will be very useful in this regard). 2) It is difficult for very large organizations, like big pharmaceutical companies undoubtedly are, to change direction and to do it quickly. VRX might have to deal with more competition in M&A in the future, but it takes time for big pharma to adapt and copy VRX’s business model. That is why I have basically gained much more confidence in VRX’s business model… at least for the next 5 years!... But, sincerely, who cares for more?! If during the next 5 years VRX has the opportunity to triple in size, who really cares about year 6?… Five years from now we simply will start a new conversation about VRX and decide what to do with this investment! ;) Cheers, Gio