Parsad

I think it has a good chance, but remember I said it would trade there barring a severe economic slump. Eventually it will hit tbv and book, and I think as earnings continue to come out through the year and they settle more cases, it will move up. Alot of pressure has suddenly been put on JPM now...presently, BAC is now the second most-hated bank rather than the first. Although that will probably go back to normal after JPM gets these investment losses and investigations behind them. Remember, if there is any slump, U.S. banks are in far superior shape to last time. It's like night and day this time around. The more unloved they get, the better investment they become. Cheers!

Not yet! You can find the occasional thing that is getting beaten up now, but people are still really only worried about Greece. Once Greece exits, it opens the door to everyone else. In the long-run, the Euro will be better for it, because they would get rid of the reckless and lazy countries. But we aren't anywhere near that yet. The other thing you guys may have noticed, is that gold is finally getting killed when people are concerned about Europe, rather than them running to it. I think Prem's call on commodities peaking last year was correct. Sometime in the next year we are going to see a mini-version of 2008/2009, and then you should jump in with both feet! Just no substantial bullets left! Europe has to now work itself through the process of deleveraging, and that will be uncomfortable. Not as bad as 2008, but it will be uncomfortable for most investors. Cheers!

Unfortunately, Morgan Keegan and Exis got off on the racketeering charges, but they still face trial on damages in September. Cheers! http://www.bloomberg.com/news/2012-05-15/morgan-keegan-wins-dismissal-of-fairfax-racketeer-claims.html?cmpid=yhoo

Tom, it's to create recurring income. If you are living on 1&20 or 2&20, or even only incentive fees, then you may have established too much overhead in the good years, and need that stability during bad years...or it could just be they are screwing with people! ;D Cheers!

Hi Shane, Dalal Street is just the general partner for the Pabrai Funds. It looks like that filing has shown up before the normal 13-F filing under Mohnish's name has shown up. He's heavy into financials! Cheers!

I have no problem with anyone criticizing Francis' investments and neither would he. What I'm saying is the smarmy, smart-ass comments is what I can do without. Hester's initial comments were fine. It was the whole "great Francis Chou" stuff. The board is called the "Corner of Berkshire & Fairfax" for a reason. I don't care if you don't agree with something regarding Buffett, Watsa, et al, but do me the courtesy of being respectful to them, as it is my board and my time spent running it. Some of you may say Francis doesn't belong in the same category, but he's solely responsible for why our dinner is the way it is now. As a human being, he may be on par with them already! Cheers!

Well there's one enormous difference that you may or may not have noticed. Francis is a very good friend of mine, as well as to many others on this board, whereas the turds you mentioned I have no knowledge of whatsoever...except the one time I cornered Herb Greenberg at the very first Value Investing Congress. He, along with Jim Chanos, had just called Fairfax and Prem frauds in front of 400 hedge fund managers. When I asked Herb if he actually read the Fairfax annual reports or filings, he said that he had not, but had two very trusted sources who had done their research! So, if you believe turds like that are on the same level as Francis, by all means say what you want about him...but you better as hell do it on another board. If you haven't noticed, I own this board and moderate it. If you don't like it, you are more than welcome to go back to your blog! I hear one more sarcastic comment about Francis, and I have no problem banning anyone's ass...censorship be damned!

I think any banker arguing against the Volcker rule is just defending their book. There should be a clear separation between banks and trading. This just goes to prove it...that no matter how much a CEO knows, they don't know everything, and there is a real need for a barrier to risk that could take down a leveraged institution and others around it. Cheers!

Love his quote about Madoff! Cheers! http://www.cnbc.com/id/47376043

Like the United States, they are rich enough to keep themselves on the rails for a pretty long-time. If they can fix the problems while staying on the rails, then it is not a problem. Europe cannot do that...their nations and their banks are pretty leveraged, and they aren't rich enough or eager enough to work together. Some will go and some will stay, and then things will be fine...but in between it will be volatile and alot of work. Cheers!

I don't think you'll see that sort of contraction in the United States, but you will see flat to zero growth. This is very much a repeat of 1937, but in Europe! They are headed for a severe recession...depression in some regions already...and that level of contraction may happen over there. That will mean continued low interest policy here and slower growth. Let's just hope nothing significant happens in China or Japan. Cheers!

Not sure what the sarcasm is for Hester. He laid out all of the pros and cons, including the fact that the financials may be fraudulent in the annual report. He said that he is taking a basket approach because of the risk. Like others have said here before, it's so easy to be critical when you hide behind anonymity. At least I can give Carson Block that much credit, because he put his name out there, but alot of other people, and maybe I'm pointing you out and maybe I'm not, are a hell of a lot braver when they have nothing to stand behind other than a message board username. Cheers!

It all depends on your needs and level of comfort. There is no one specific answer that fits everyone. Cheers!

Business casual is fine in my opinion. Cheers!

One of our boardmembers had a couple of memorable pictures with Warren last weekend! Cheers! Alan_With_Warren_2012.pdf

Good article by the Globe & Mail on Europe's problems. Cheers! http://www.theglobeandmail.com/report-on-business/international-news/european/austeritys-future-unclear-in-wake-of-euro-zone-elections/article2424904/page1/

Hi Folks, Here are the notes and pictures from the 2012 Dinner. Thanks to everyone who attended! Cheers! Fairfax_Financial_2012_Shareholders_Dinner_Pictures.pdf 2012_FFH_Dinner_Notes_By_Norm_Rothery.pdf

Folks, I'm an atheist, but whether all of you like it or not, you already subscribe to a religion. And by religion, I mean a form of ideology that shapes your conduct and culture...the religion of value investing! And I'm a far better person for it. That being said, I think religion has shaped humanity since the beginning, both for better and for worse! So, let's leave it alone and go back to the philosophy we all agree upon...the Buffett principles. Cheers!

Here are a bunch of Berkshire weekend articles and videos. Cheers! Reassurance From Buffett: http://www.omaha.com/article/20120505/MONEY/705069949#reassurance-from-buffett Fantastic pictures from the Omaha World-Herald: http://odc.omaha.com/index.php?u_page=5002&p=3589 Omaha World-Herald Live Blog From Meeting: http://www.omaha.com/article/20120505/MONEY/705069949#chat Buffett Holds Court at Berkshire Hathaway Annual Meeting: http://finance.yahoo.com/blogs/breakout/warren-buffett-holds-court-annual-berkshire-hathaway-shareholders-212750078.html;_ylt=ArSjAY0m.XXGVwRNLG1il8GiuYdG;_ylu=X3oDMTQzZjkxNnZuBG1pdANGaW5hbmNlIEZQIEp1bWJvdHJvbiBMaXRlBHBrZwNiMWRmNzQyMS1kZTMzLTMwMjQtYmJkMi0zOGUyYzk2NDE2NmMEcG9zAzEEc2VjA2p1bWJvdHJvbgR2ZXIDM2FhMTI4YTAtOTc5Zi0xMWUxLWFmZWYtMmNlYjViYzg2NjY1;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3 Berkshire Shareholder's Meeting: Woodstock For Capitalists http://blogs.wsj.com/deals/2012/05/06/berkshires-shareholder-meeting-the-woodstock-for-capitalists/?mod=yahoo_hs WSJ Interview: http://blogs.wsj.com/deals/2012/05/06/buffett-on-europe-china-berkshire-stock-price/?mod=yahoo_hs Bill Gates and Warren Buffett playing table tennis against Ariel Hsing: http://www.omaha.com/article/20120506/NEWS01/120509834#video-warren-buffett-amp-bill-gates-playing-table-tennis

Our own NormR wrote an article for the Globe & Mail. Cheers! http://www.theglobeandmail.com/globe-investor/investment-ideas/behind-the-numbers/can-fairfaxs-bear-market-strategy-work-for-you/article2423544/

I don't think Twacowfca was saying allow only poor immigrants. He was saying that immigration would be a net positive...all forms be it refugee, entrepreneurial, etc. Cheers!

Most correct! North America was created from such economic calamities in the past. Cheers!

I agree. I think France and Italy will be able to repair their finances similar to the United States, but only after applying cuts to the public sector. Spain is a big problem any way you cut it. Cheers!

You can't just lend to the banks without fixing the underlying capitalization problem. Imagine the Fed window lending to U.S. banks without a TARP program? Just throwing good money after bad. They need to recapitalize the banks now. The other problem is that the bank's can keep lending to the states, but you are pretty much running a Ponzi. If unemployment is increasing, incomes are decreasing, then tax revenues decrease. How can the states pay the banks back, who then have to pay the BCE? The only solution is selective defaults with austerity measures applied after. You cannot help a bad borrower until you've reduced the debt load to a level that is sustainable or repayable. Spain will need a bailout. Cheers!

Yes, exactly. Fairfax shareholders have to be patient, because when cash is king again, Fairfax will be there! Cheers!