Grenville

Always a unique perspective! Thanks!

Just saw this when looking at reviews on Yelp for locations in Atlanta. Updated - 3/16/2009 I went here last night to get a couple milkshakes through the drive-thru. When I got home, I saw the shakes weren't even close to full.... Highly annoyed, I sent feedback on the SnS web site. Less than 24 hours later, I got a response with an apology, an assurance that the issue will be addressed, and a gift certificate to cover the cost of the milkshakes. I thought that was nice of them, so I will keep my four-star review. :) Update: 3/17 The first mail was from the corporate hq customer service manager. That was followed up yesterday by an email from the Atlanta-area District Manager with an explanation of their procedures, an apology and two free shakes (redeemable by printing out the email and bringing it to the SnS) I wish more places cared about customer service like this. http://www.yelp.com/biz/steak-n-shake-atlanta-4#hrid:qyvHJH-qPzhwtcg8xP6K0Q/src:search/query:steak and shake

From TariqAli's site and the FOX news interview, Munger recommended Outliers by Malcolm Gladwell

Hi guys, I had the good fortune of attending the Berkshire meeting this year for the very first time! The new question format and the responses from Warren and Charlie were awesome. I know some of you were not able to attend, and I wanted to make sure I took good notes to share with board members. I am immensely grateful to the board for all that I have learned from your insights and shared information. Also, its hard to quantify the impact a humble individual like Sanjeev P. plays in making this site what it is. Thank you! I have attached my notes in .pdf format!

Awesome link! Thanks for posting!

The Hoisington Investment Management Quarterly Review and Outlook for Q1 2009 has been posted. The report paints the picture for deflation as the velocity of money outpaces helicopter Ben's work. The shadow banking system's failure continues to pressure velocity. They continue to favor bonds. Good read. Added a poll as well. http://www.hoisingtonmgt.com/pdf/HIM2009Q1NP.pdf

Hey guys, There was a really in depth interview done with Bruce Berkowitz in the latest issue of Outstanding Investor Digest. In the interview he talks about his investment thesis in Pfizer, Sears, Leucadia and a couple of other holdings. Pfizer is a large holding within Fairfax's portfolio. A link to the OID interview can be found on the Fairholme Funds main page on the bottom left. The interview is 36 pages of the digest. http://www.fairholmefunds.com/ -Grenville

what Grantham aptly describes as career risk!

Buffett will invest in the new partnership as well. http://www.cnbc.com/id/29958495

Looks like Odyssey Re is forming OdysseyRe Capital Trust I. From my limited understanding, it looks like they are setting up a trust to go out and purchase their debt. I don't know why you would set up something like this unless it allows for better tax treatment. Any thoughts or comments would be appreciated! Here is an excerpt from the beginning and the link is below to the SEC listing. http://www.sec.gov/Archives/edgar/data/1137048/000090956709000251/0000909567-09-000251-index.htm Description of the trust: We formed OdysseyRe Capital Trust I, a Delaware statutory trust, to raise capital for us by: • issuing trust preferred securities under this prospectus; and • investing the proceeds from the sale of the trust preferred securities in our junior subordinated notes. The trust will use the payments it receives on the junior subordinated notes to make cash payments to the holders of the trust preferred securities. We will own all of the common securities of the trust. Such common securities will represent an aggregate liquidation amount equal to at least 3% of the trust’s total capitalization. Such common securities will have terms substantially identical to, and generally will rank equal in priority of payment with, the trust preferred securities. If we default on the corresponding junior subordinated notes, then distributions on such common securities will be subordinate to the trust preferred securities in priority of payment. As holders of the common securities, we (except in certain circumstances) will have the power to: • appoint the trustees of the trust; • replace or remove any of the trustees; and • increase or decrease the number of trustees.

I am also curious to hear the answer to your question. I did find this in the ORH annual report: "During the year ended December 31, 2008, Odyssey America purchased 128,000 shares of our Series B preferred stock, with a liquidation preference of $3.1 million, for $1.7 million. As a result of the purchase of the Series B preferred shares, we recorded a gain of $1.4 million during the year ended December 31, 2008, which was recorded in retained earnings and included in net income available to common shareholders."

Impressive interview between Cramer and Stewart. Kudos to Jon Stewart! http://www.thedailyshow.com/video/index.jhtml?videoId=221516&title=jim-cramer-interview-outtake

The current board format works perfectly well! Why mess with a good thing?

" Now, our book value far understates Berkshire’s intrinsic value, a point true because many of the businesses we control are worth much more than their carrying value." -That line is nothing new. It can be found in last year's annual report as well on page 73 at the very bottom!

"The underlying business, our insurance and reinsurance business, excluding these exceptional items and in a very challenging insurance environment, had a combined ratio of 96.2%. Accident year combined ratios for all our companies are close to 100% in all cases with good reserving." - From the conference call. I hope everyone has listened to the conference call. They address the fx issue, and the underwriting pretty well. Based on my limited understanding of underwriting, they did a pretty good job overall. I agree if you were trying to go for perfect and nit pick, the underwriting is the worst performing area relatively. I think if you zoom out they are doing a fine job with their underwriting and they would tell you up front if they weren't. One question I have, does the CR ratio take into account how they are reserving? If they are super conservative and over reserving will that mean that the CR ratio looks artificially high or does the effect of over reserving average itself out over time?

Munger's Transacation Class A Common Stock ( 1 ) 11/20/2008 S 2,000 ( 2 ) ( 2 ) See footnote 1 ( 1 ) $77,500 ( 3 ) 13,181 D http://www.sec.gov/Archives/edgar/data/1067983/000118143108063602/xslF345X03/rrd224408.xml

Without the hedges, the equity portfolio value will be a tad more volatile in these tumultuous times. Below is the change in value of the top 19 positions from 12/31/08 to today. A drop of about 8.6% or 435 million. 12/31/08 2/17/09 Equity Positions 2,195,441 2,204,769 ODYSSEY RE HLDGS CORP 459,816 430,741 JOHNSON & JOHNSON 317,577 255,532 PFIZER INC 293,676 270,681 Kraft Foods Inc 271,289 235,719 DELL INC 234,720 211,360 Intel 195,414 130,639 General Electric 162,739 141,140 Frontier Communications 158,592 152,340 Magna International Inc 103,625 48,122 Wellsfargo 102,021 61,213 Alcoa 98,713 82,074 Burlington Northern Santa Fe 98,366 79,232 KING PHARMACEUTICALS INC 96,101 126,742 LEVEL 3 COMMUNICATIONS INC 69,019 49,127 INTERNATIONAL COAL GRP 65,074 32,740 Gannett Inc 56,892 47,434 USG CORP 42,645 34,865 Progressive Corp Ohio 36,463 28,669 OVERSTOCK COM INC DEL 5,058,183 4,623,137 total -8.60% -435,046

Thanks for the heads up! It's hard to pass up a <10% dividend with a discount from par of <40%! I bought some ORH.A today. my previous id on the MSN board: masterP3250