Parsad

Hey you turkeys! So far I've only gotten four responses. If I don't hear from people, I'm going to cancel this thing. How can you guys turn down a free bus to take you to Fairfax companies, discounts, gift cards and lastly...my charming company! If you want me to save you a seat, email me at cornerofberkshireandfairfax@gmail.com. Thanks!

Slideshow from yesterday for Professor Bruce Greenwald's class: He's got the song Jai Ho by AR Rahman from Slumdog Millionaire playing! ;D Cheers!

The next round of LEAPS issued will be cheaper once a regular dividend is restored. Stocks with the highest regular dividend payouts usually have extremely cheap LEAPS (loss of dividend is priced in). The way the warrants are priced it seems clear that what you are doing is actually buying that dividend upfront -- an estimate of a future dividend is capitalized into the price of the warrants. This makes sense given that the market isn't going to sell a product with dividend protection without asking for some kind of a premium. So with the LEAPS at least you get that dividend tax-free (you get it by never having to pay for it in the first place). He was saying that in reference to things they've learned...that capital base and liquidity matter most...so that they don't have to dilute shareholders again when the shit hits the fan. He pointed out that now he has a ton of work to do to reduce that share count because of the error of his predecessors in not maintaining better liquidity, higher capital and avoiding non-core/undesireable business. He's not the most charismatic or well-spoken banking executive out there, but he knows his stuff and he knows what it's going to take to build the reputation back. He's definitely a numbers guy, so you hear him sometimes run off data and mumble answers. What he's done so far is pretty darn amazing, because the bank should not be standing. As long as he continues to focus on the right things I'm 100% behind him! Cheers!

Well, sonny, pull up a chair and let me fill my pipe and heat up some herbal tea for us. It all started back in the spring of 1923 . . . or perhaps that was 1924, I can't quite remember now. America was coming into its own and rearing to go. Corporations were no different and the stock market was soon to become the pasttime for literally dozens if not hundreds of people. I was there with a front row seat so join me as we take this journey through the years together. So you are Irving Kahn! "Kahn is currently the oldest active money manager on Wall Street.[2] He made his first trade—a short sale of a copper mining company—in the summer of 1929" No, he's Ben Graham. LOL! Cheers!

Prem and his team have been very nice to set up a bus for us to take people to William Ashley & Sporting Life on Wednesday, April 10th. The bus leaves the Royal York at 1:00pm and arrives back at 3:30pm in time for Norm's Pre-Dinner Gathering. I will also have all of the discounts and surprises for everyone that you would normally get at the AGM the next day, so you will be able to use them on this trip and get a great deal! I need a head count for those going, so please RSVP me at cornerofberkshireandfairfax@gmail.com. Alnesh and I will be going for sure...I've got to get me a box of Teuscher chocolates at William Ashley, as well as stuff from Sporting Life! Cheers and thanks to everyone at Fairfax!

That's so stupid. That company is going to lose more business. Cheers!

I haven't worn a watch for about 10 years also..but ironically, my last watch was an Apple watch!! Unfortunately I lost it... Lately, I thought it was probably a rare and precious object..but actually, you can find it on eBay, and it is not worth that much! http://www.ebay.com/itm/NEW-APPLE-COMPUTER-MAC-OS-WRIST-WATCH-NEW-BATTERY-RARE-VINTAGE-RUBBER-BAND-/181108930173?pt=Wristwatches&hash=item2a2aeef67d I used to wear a watch every day, until my phone started telling the time and doing alot of things. Now if an iWatch could do alot of things my phone could do, I would go back to wearing a watch. I used to collect watches actually...I even have a Berkshire Hathaway Seiko watch...it's very nice...never worn except the day I bought it! Sitting in my safety deposit box, alongside the really nice Gucci watch my parents bought me for my 21st birthday just before my Dad died. Those are the only two watches I have left...as I sold the rest because I don't wear them anymore. Cheers!

Energy Boom Ripples Through U.S. Economy. Cheers! http://finance.yahoo.com/news/energy-boom-ripples-us-economy-192914084.html;_ylt=AoV3OrknK0JoX9Vry.a9B_WiuYdG;_ylu=X3oDMTQ4cmViMXBjBG1pdANDTkJDIFRvcCBTdG9yaWVzBHBrZwNhZmU1MzUzYi0yMzNjLTM0ZWItOWJmOC00MzRjY2EzZWFiY2YEcG9zAzEEc2VjA01lZGlhQkxpc3RNaXhlZExQQ0FUZW1wBHZlcgNjZGYxZTg1NC05NTg4LTExZTItYjczOS1jM2UzYWM1NTc4ZDU-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Are you in MBIA too? :D No...too much business risk. But it is one that I follow like Fortress Paper...same reasons. Cheers!

Accepting yourself is the first step to recovery. ;D Cheers! Notice, I used the word "supposedly". ;) LOL! I thought I could have gotten you into a 12-step recovery program. Cheers!

Accepting yourself is the first step to recovery. ;D Cheers!

It will. It's unavoidable in developed manufacturing businesses. That's why they are moving to watches where the margins are much higher. Whenever you start to produce a product, that has no long-term competitive advantage (KO's distribution system & brand, or Windows long-time monopoly), it will eventually become a commoditized business and margins will compress. They will still be as high, if not higher than their competition, but they will compress from past highs. Cheers! Long term advantages are not usually built overnight. And they're not moving to watches because margins are higher. The revenues from watches are going to be small and not make a significant difference to overall margins. I suspect that's what people thought about the move from iPod to iPhone, but eventually iPhones made up far more of the revenue than iPods. Cheers! Ok, lets see. How big is the watch market? What can they price their smartwatch at? You're thinking of it in terms of existing market. Of course the annual watch market is probably one tenth the size of the annual smartphone market. But the smartphone market only grew because of what the cell phone became capable of doing. What if your smartwatch actually unlocks your car and turns on the engine as you approach the door? What if your smartwatch turned on the lights in any room in your house as you walked into a specific room? What if Siri worked directly through your watch and you could make calls, listen to music, watch a program, check your schedule, and transcribe an email? What if you could make payments at credit/debit payment systems at retail shops? What if your smartwatch could check your vital statistics, monitor blood sugar levels, and even signal 911 if you've "fallen and can't get up?" What would you pay for that watch? How many of those watches would Apple sell? Cheers!

It will. It's unavoidable in developed manufacturing businesses. That's why they are moving to watches where the margins are much higher. Whenever you start to produce a product, that has no long-term competitive advantage (KO's distribution system & brand, or Windows long-time monopoly), it will eventually become a commoditized business and margins will compress. They will still be as high, if not higher than their competition, but they will compress from past highs. Cheers! Long term advantages are not usually built overnight. And they're not moving to watches because margins are higher. The revenues from watches are going to be small and not make a significant difference to overall margins. I suspect that's what people thought about the move from iPod to iPhone, but eventually iPhones made up far more of the revenue than iPods. Cheers!

Again, without any particular comment, other than I find the hypocrisy in this proxy contest to be a complete misjudgment in light of what has come to the fore. Please read Item. 2 and Item. 4...which were never disclosed in any previous filing. http://www.sec.gov/Archives/edgar/data/800286/000114420413017017/v339005_sc13da.htm While I'm no fan of SED's management, I find it difficult to understand how someone can ridicule an incumbent director after their own ethical and personal failures were so poorly documented or disclosed? It seems there are many young men these days, who want to get rich quick and gain notoriety as activists, yet the most basic of ethical behavior eludes them. The losers are the actual shareholders of these companies...from the oven to the deep fryer with executives these days! Cheers!

Hmmm...some good news I think: http://www.sec.gov/Archives/edgar/data/1106838/000114420413016995/v339035_8k.htm Looks like Chanticleer is exiting the investment business directly, and Joe and Matt will focus on a new investment vehicle. I'll wait to see what the structure exactly looks like, but it's good for Mike to focus on the restaurant business, while Matt and Joe focus on the investment vehicle. I suspect Chanticleer will have some sort of arrangement with the newco as a majority shareholder, but we'll have to see. Cheers!

Very good letter! Cheers!

It will. It's unavoidable in developed manufacturing businesses. That's why they are moving to watches where the margins are much higher. Whenever you start to produce a product, that has no long-term competitive advantage (KO's distribution system & brand, or Windows long-time monopoly), it will eventually become a commoditized business and margins will compress. They will still be as high, if not higher than their competition, but they will compress from past highs. Cheers!

Comments by Wilbur Ross. Cheers! http://finance.yahoo.com/news/wilbur-ross-long-term-bonds-144336656.html;_ylt=AuHaMBFW84I1beMfeBtlqPiiuYdG;_ylu=X3oDMTQ4a3FicWkyBG1pdANDTkJDIFRvcCBTdG9yaWVzBHBrZwNiYzRmNWMzYy1lYjYzLTNhZjItYmE0Zi04NmY0OWE3MjA1OTgEcG9zAzIEc2VjA01lZGlhQkxpc3RNaXhlZExQQ0FUZW1wBHZlcgM5ZjQ5ODc3MS05MzAyLTExZTItOGY3Ny00MzE4MDVjM2FmMmI-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

The softer side of Kraven (nod to old Sears advertising). Really, though, your original comment can be called funny (at least by me) because it wasn't directed at anyone personally. The apology - whether or not he's the guy - is cool. I have to say, Kraven, you won a lot of points in my book for your posts some weeks (months) ago about how one of those banking / consulting conferences play out. It was genius. The early workings of a Dilbert. You know, if I have a son, I'm beginning to look at this board for pithy life lessons for the as yet unborn tyke. Wanna go corporate, see Kraven posts. Wanna get into insurance, see twacowcfa. Wanna pull yourself up and do it on your own, read the story of Parsad. Wanna flout the conventional wisdom you'd otherwise be taught at business school (or at least die tyrin'), see my friend Ericopoly. Want some excellent returns and good insights into macro, here's Pakcer. Want to become a lawyer like your grandfather -- fine -- but do what txlaw does. Want to pursue your Italian heritage, how about a summer internship with gio franchi. Feeling a tinge of anarchy -- I've got just the rkbabang for you. Want to see dad put in his place, call ragu. You like Canada -- what's that aboot? O.K. but at least find a girl from Vancouver (if she isn't already an actress in L.A.) and don't tell mom. That's a pretty darn good post there yourself, Kiltacular! Cheers!

Update: http://www.electronista.com/articles/13/03/20/sequester.holding.up.purchase.intended.to.replace.failing.devices/ This is the second time in the lat few days that I've seen a negative report come out on RIM and was later withdrawn. Hmmmm......something's up. Shorts have to make their losses back. Cheers!

Most of the ads I see on this site are based of my google profile activities (searching and gmail) ;) it is kind of scary... i look at the one thing on another page and bam the ads shown here are related, almost instantly... It is very scary. What is stopping the government from tracking the exact same thing? A wonderful, and increasingly weird, world we are living in. Cheers!

JPM Was Secretly Downgraded By Regulators: http://finance.yahoo.com/news/jpmorgan-secretly-downgraded-regulators-170006215.html;_ylt=AjCqm6YkNpoevBnHVHIdQEiiuYdG;_ylu=X3oDMTQ4MGlwMWl2BG1pdANDTkJDIFRvcCBTdG9yaWVzBHBrZwM3NzBlNjEzYy05ZDQwLTM5NDUtYmY0Ni1jYTZjNjI5MjllYTMEcG9zAzIEc2VjA01lZGlhQkxpc3RNaXhlZExQQ0FUZW1wBHZlcgNjNjRkNmFlMy05MTgwLTExZTItYjdmYi1jZTIzMDY1NTY4ZGQ-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3 Cheers!

Because he's going to plow his money into something he owns and controls directly. Cheers!

Sanjeev -- do you know the guys at Chanticleer? Is that part of your rationale -- since they are basically value portfolio managers who get capital allocation? Partly...and partly because somehow Mike Pruitt wheels and deals his way to get things to happen. I don't always agree with what happens at Chanticleer...high burn-rate of capital on a quarterly basis, abandoning the fund management side a bit to focus on the restaurants, audit committee failure regarding the fraud, hiring an IR firm, etc. But somehow Mike keeps things afloat when most other people would have hit a wall and collapsed. You can't teach that! If the credit crisis did not happen, Chanticleer would have closed that initial deal with Texas Wings and Hooters Inc and we would not be having this conversation. Instead, they lost time, burned through the cash they had, Mike had to support the business himself, and then he finally wheeled and dealed his way to closing the entire consolidation of the Hooters brand, while getting the right to expand the brand internationally. It is a bet for me on the people there, not on the business itself, margin of safety or anything else. It's solely on the people. I don't usually do that, but we've been with them a long time. We have not added to the stock recently, but would if it went below book. We're just going to go for a ride on this one, and see where it take us. Cheers!

Only 20% left. They will be gone in the next couple of days. Cheers!