Grenville

From the FFH 13D posted 1/10/14 http://www.sec.gov/Archives/edgar/data/915191/000119312514008108/d655286dsc13da.htm “On December 24, 2013, 1109510 purchased 129,000 Shares in the open market at a price per share of U.S.$7.7071 per share. On December 30, 2013, US Fire transferred U.S.$25 million principal amount of Debentures to North River. On January 8, 2014, Fairfax exercised the option to purchase, through its subsidiaries, an additional U.S.$250 million principal amount of Debentures.

Question on how to calculate the cost of leverage or similar metric for puts: I know for calls the cost of leverage is solved using: Strike = (common stock price - premium)*(1+leverage %)^(term) For puts, would an equivalent equation be: Strike = (common stock price + premium)*(1+leverage %)^(term)

This was also released today: "FHFA Directs Fannie Mae and Freddie Mac To Delay Guarantee Fee Changes" http://www.fhfa.gov/webfiles/25937/GFeeDelay010814.pdf

Thanks! I was wondering what was driving the prefs today.

$350 million. I agree there is an outstanding risk control question of how big of a position they will take in a given company as a % of FFH's equity and it isn't reassuring that Prem gives a poor seat of the pants answer. With that said, however, there is a large difference between another $500 million in BBRY equity and another $500 million in BBRY debt. Thanks for the cost base in BOI. I agree there is a huge difference between debt and equity. Risk is much less. It's the position size that bothers me.

What's their cost base in BOI?

I just don't get it. They have now invested 1.38bln! Think about the opportunity cost of that money in todays market.

20F I believe. LC, Thanks. I couldn't find the 20F for 2012 on the Fiat website. All I find is the annual report. Ah sorry...I don't think they are required to file a 20F anymore as they are not listed on the NYSE. Only the ADR is. So I believe it is just the annual report and the mid-year (transitional?) report. But their I/R page has regular information releases that are more current as well. Thanks for the information. That makes sense. I've been slowly working through the 2012 AR.

20F I believe. LC, Thanks. I couldn't find the 20F for 2012 on the Fiat website. All I find is the annual report.

I'm a little late on this idea. Just starting the diligence. Had a question for board members. What is the equivalent to the 10K when researching FIATY? The reason I ask is that in the US, the 10K and annual report are different. One can be a marketing document without all the relevant details. I found the annual report on Fiaty's website. I just want to make sure there isn't another place I should look.

Merry Christmas, Happy Holidays to all board members. 2013 has been an interesting year! Looking forward to 2014. Thank you everyone for all the good discussion, links and posts on the various threads. I'm very grateful for a resource such as this board with quality contributors. Thank you Sanjeev for running the board and holding the annual Fairfax dinner.

Thanks for uploading. I just tried to view it off the Fairholme site and it didn't work for me.

Just finished the Everything Store by Brad Stone. I highly recommend the book to anyone invested in Amazon or other's wanting to get a more inside look at the company. Really interesting stories both about internal operation along with their acquisitions. I know Mackenzie Bezos had a less than sparkling review, but I agree with others that its a valuable story/view on the workings of growing/sprawling business. I think there is a thread in the book category, but I wanted to leave my review in the investment thread because it adds value understanding the company.

Thanks for posting! It will be interesting to see how Matt Rose's responsibilities evolve.

Re servicing as an asset. I think the capital ratio cost of servicing assets makes them not as attractive to keep from a pure financial perspective. I don't completely understand the mechanics with respect to their cost re the capital ratio, just that I've heard them talked about in that way on the conference calls for BAC. I do think they have value for a bank in the way WFC uses them. They view it as a channel to have more products with their customers and make them even more sticky as someone who has a mortgage with the bank will more likely keep other products with the institution and add other products down the road.

Does anyone know if the consolidated class action complaint was submitted? The date on the joint status report had the document due 12/3/13. I checked the Perry Capital case Docket Report on Pacer and didn't see a filing.

I believe it was to balance the cash flows they were making on their index shorts and other derivatives. I believe they also are with similar counter parties to somewhat hedge their exposure.

They converted the shares to total return swaps which are reported in the NAIC filings for the insurance subs. See ORH. It makes it harder to follow they're position in those companies.

Have a safe, enjoyable holiday break everyone!

Thanks for posting the article. Interesting info from the conference and an insider at Amazon.

Interesting to see Ackman build 10% positions in both Freddie and Fannie common stock. He was buying heavy at $3 at least in Fannie. http://www.sec.gov/Archives/edgar/data/310522/000119312513443212/d630953dex992.htm http://www.sec.gov/Archives/edgar/data/310522/000119312513443212/0001193125-13-443212-index.htm

Article below is an WSJ interview with Andy Jazzy, head of AWS. "Meet the Man Who Really Runs the Internet" http://online.wsj.com/news/articles/SB10001424052702304868404579194353031011652

I noticed his name too, but I think he is an analyst in NY for the insurance division. See the wording under his name.

Good read. Thanks for posting!

here is the filing with the new breakout of investors: http://www.sec.gov/Archives/edgar/data/915191/000119312513435223/d625754dex4.htm