Grenville

I didn't realize (don't remember reading about it/started investing in FFH in 08/09) they had out of the money index calls to hedge on the upside in 2007! I'm surprised they didn't do the same here, it's cheap insurance just like the CPI derivatives.

Great to see the improvement in the insurance subs and to see Zenith positive. The hedges were costly. Book value at $339.

All the info is now there for you to figure it out. Just look at the 10Q's, they disclose the cost base.

BNSF Announces $5 Billion Capital Commitment Program http://www.bnsf.com/media/news-releases/2014/february/2014-02-04a.html

My guess is that Munger doesn't think Costco is cheap. Munger talks very highly of the company and is on the board. He owns shares that he received from being on the board.

Nice review of the Cherokee in the WSJ. All's Well With the Jeep Cherokee's Trailhawk but the Beak http://online.wsj.com/news/articles/SB10001424052702304680904579366752795455262?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304680904579366752795455262.html

Interesting. What would happen if they spun off Ferrari? It seems easier for them to keep liability to the controlled group's existing assets. Dividends and other distributions would be hard to claw back unless they were only done to avoid the pension liability.

The article does bring up something I wasn't aware of, pension liability that pierces the corporate veil. I'd like to get separate confirmation of this. In a worst case scenario now that Chrysler is fully owned, the author states that pension liabilities stay with Fiat even if they let Chrysler fall into bankruptcy. On a related note, when I read Once Upon a Car, Daimler Chrysler was described as being very motivated to get rid of Chrysler. The reasoning was two fold, one the lack of profitability and the other the ballooning healthcare liability. I wonder if this pseudo successor liability was the real reason.

Vinod1, Appreciate the color on RWA and CCAR with respect to litigation. I guess the 8.5bln settlement will continue to drag on.

Just finished reading Once Upon a Car. Thanks for the book recommendations! I enjoyed Mondo Agnelli more but Once Upon a Car was a good overview of the big three through the financial crisis. There wasn't much about Sergio or Fiat until the very end of the book.

Finally!

Do you understand Italian or did you just use Google Translate? I wish...used google translate, haha...

Good interview with John Elkann in La Stampa today. It's in Italian. http://www.lastampa.it/2014/01/30/economia/elkann-per-lauto-futuro-pi-solido-io-resto-qui-al-lingotto-71JW468miwjDOuhTepvm3N/pagina.html

Thanks for posting! I also thought this letter in the FIAT releases from today was very good and covered a number of things: http://www.fiatspa.com/en-US/media_center/FiatDocuments/2014/Gennaio/Fiat_S_p_A_reorganizes_after_completion_of_the_purchase_of_Chrysler_Group_LLC.pdf

enjoyed your comments, thanks for posting

I'm guessing we won't have any date until they release the 10K. I am a bit surprised it isn't out yet, not sure what the hold up is.

Thanks for posting!

I agree. I don't see Jefferies leaving LUK as long as Handler and Friedman are around unless they spin it off to shareholders as a separate company.

My guess is it's Ian Cumming selling more stock. He's below reporting thresholds now, so we won't get confirmation if it is him.

Here are the details of the plan: Delaney, Carney, and Himes Announce Housing Finance Reform Proposal, Plan to Introduce Legislation this Spring http://delaney.house.gov/media-center/press-releases/delaney-carney-and-himes-announce-housing-finance-reform-proposal-plan

Thanks Brker_guy!

Not sure if this story is true, haven't been able to find any verification.

Via Twitter: Bob Pisani ‏@BobPisani 1h Fannie Mae $FNMA, Freddie Mac $FMCC spiking on reports House Democratic leaders unveiling plan for both to be sold as independent companies

For what it's worth, I had a similar question when I was investigating Davita a while back. I called IR and eventually got a call back and answer. Unfortunately, I don't remember their response and didn't write it down in my notes. I would suggest calling them if someone else on the board doesn't respond with the answer.

Yeah, the 13D shows a converted position, I posted the above to show that he did purchase BB shares for himself. I couldn't find any details of this before.