Parsad

FBI now investigating missing funds! Cheers! http://money.cnn.com/2011/11/01/news/economy/mf_global_fbi_investigation/index.htm?source=cnn_bin&hpt=hp_bn5

Probably not a good idea to short a company (that in the worst case scenario would need $35M), where the CEO is worth $50M, his father is worth over a billion, and the largest shareholders manage over $22B in investment capital...Prem and Francis! Do you really think that if Byrne called up Prem or Francis and offered them convertible notes, or even better preferred shares with a decent yield, that they wouldn't jump on it? Not to mention that a principal of Hamblin-Watsa, Sam Mitchell, sits on the board of Overstock. Hopefully, Sam Antar and his cronies decide to short the hell out of this, because I would be thoroughly entertained to watch them lose all of their money! Cheers!

Conflicting reports: http://finance.yahoo.com/news/Official-MF-Global-admitted-apf-602167470.html?x=0&sec=topStories&pos=2&asset=&ccode= Attorney says funds accounted for...executive says client money was used during problems. I say jail time! Cheers!

You guys are a resource for me on various subjects, not just investing, so I thought I would just seek some answers. Does anyone on here suffer from, or know someone that suffers from, CRPS (complex regional pain syndrome)? The daughter of one of my friends suffers from it, and I was just checking to see what you know, how people deal with it, and any new treatments that may have been tried. Cheers!

Yah, this is baaaaad. If a primary dealer is able to comingle funds and not get caught (only caught b/c of the bankruptcy), how many other places are doing the same thing? The system needs trust to work, and this is NOT something that helps with that. Yup! Exactly what were the auditors doing as well. Cheers!

MF also did not follow protocols to segregate client assets from company assets. Could be fines or worse for them and some executives. Cheers! http://www.cnbc.com/id/45113687

Sounds a little like what caused our housing mess. No one could say no to the people who wanted to borrow money but never could have paid the loans back in the first place. But the lenders in the interim were making some money and hoped to kick the can down the road to someone else. Don't forget the $20B+ they accumulated hosting the summer Olympics! Like that was a necessary expense to run the country and generate economic growth. Cheers!

Keith Olbermann had a bit on Toronto's mayor, Rob Ford, being worst person in the world for calling the police, when "This Hour Has 22 Minutes" comedian Mary Walsh pulled her little "Marg Delahunty" bit on him. Not investment related, but I thought it was a funny story on the mayor of the city that believes it's the center of the universe! ;D Cheers! http://ca.news.yahoo.com/blogs/daily-buzz/u-tv-host-keith-olbermann-calls-rob-ford-172935248.html

More people should drink the Buffett/Watsa kool-aid. It's quite refreshing! ;D Cheers!

To get a better deal! Look how much they've talked down the rest of Europe so far. Papandreuo et al are waking up to how much leverage they have. Hopefully you are right, but it could also be he's cow-towing to the populace and risking the Greek bailout. Cheers!

How stupid can you get? Greek's Prime Minister has announced that Greece will take the Eurozone aid package to a referendum. This is going to blow up in everyone's face. While I'm sure the greek populace is tired of the chaos, there is just enough morons there to destroy any progress and send them back to the stone age. Cheers! http://www.theglobeandmail.com/report-on-business/international-news/greece-gambles-on-referendum-for-new-debt-deal/article2220043/

Yup. The comparison is valid, but none of us are buying the market or broad base of bonds. We buy individual securities. Cheers!

The last 30-year period ending September 30th, is the first such period where bonds have beaten stocks since the Civil War. Cheers! http://www.bloomberg.com/news/2011-10-31/bonds-beating-u-s-stocks-over-30-years-for-first-time-since-19th-century.html

Richard Garneau, the CEO of Abitibi-Bowater and who we had the pleasure of meeting at this year's Fairfax Financial Shareholder's Dinner, has declined his incentive fee as an act of good faith towards employees, shareholders and communities. Cheers! http://www.theglobeandmail.com/globe-investor/abitibibowater-ceo-declines-incentive-compensation/article2219675/

Better article in the Vancouver Sun this weekend, that was originally written in the Daily Telegraph. Cheers! http://www.vancouversun.com/technology/need+human+ingenuity/5627718/story.html

Some of you may have heard about the 9-passenger plane crash that happened in Vancouver on Thursday. The pilot passed away, but remarkably the rest of the passengers survived, thanks to his efforts and the numerous passerbys who jumped into the burning plane to rescue the passengers. Jeff McCord, who started Vertex Asset Management in Vancouver, was on that flight and he is ok. Very fortunate that so many walked away from this thing. Cheers!

You always see these big numbers, but there's always a catch. I'm much more impressed by people who bat with high consistent averages, rather than just the occasional big swing. It helps reduce the likelihood of luck playing a larger role than skill. Cheers!

True, but to a degree these countries are already implementing these measures. One shouldn't discount political pressure as well - home country taxpayers will be upset "Greece got a deal but we didn't". Merkel is already worried about this as she made a statement earlier today trying to discourage others from seeking a debt writeoff..... cheers Zorro Greek debt is primarily restricted to European banks. Spain, Italian, Portuguese and Irish debt is held by many other countries outside of the European Union, thus they would never get such concessions by non-European banks or nations. Cheers!

Actually Tom has followed Fairfax for a long time and is a pretty good analyst. I think he was just confused about exactly how the mark to market on the CPI-linked derivatives worked, since inflation was up in the last quarter, and they booked gains instead of a loss on them. Cheers!

What happens if Spain, italy, Portugal and Ireland all want a deal? Perhaps 1.4 trillion euros won't be enough?? That may not be as appealing as you think. Greece is going to have to implement severe austerity measures, sell state assets, implement higher taxes, mass layoffs and possible future sanctions by the EU if they aren't done. Would you rather go through what Greece is going to have to do, or try and take your future into your own hands? Cheers!

Ask them why they are spending so much on capital expenses for 2012, when their shares are languishing at 45% of book value? Due they understand how equity, earnings and cash will all be accretive if they buy back shares at such prices using their operating cash flow, instead of blowing it on high levels of capital expenditures? Cheers!

Doing hard science degrees is more painful in the short-term than many other types of degrees, but it usually gives bigger gains later. Some people can bite the bullet and work harder because they have that long-term vision, but others just look at the short-term and take the path of least resistance. I think that's too simplified. I think much of the blame for all the kids entering into fruitless majors can be blamed on age. An 18 year old isn't mature enough to gauge what the best path for them is in life. So much of a person's desires and goals are shaped by our environment and experiences. They just haven't had the experience yet. I'm young, and could tell you countless stories of high school friends who have floated around in college and are just now pursuing a useful degree in a field they enjoy, many years later and often as much as 6 figures in debt. I don't know the solution to this, although I know my solution (for me, not society), but it's definitely a problem. You guys might be young, but you think like middle-aged parents! ;D I would remind you that two of the greatest innovators in American history were either home-schooled or drop-outs...Thomas Edison and Steve Jobs. Sometimes the hardships of life create truly lasting passions and ideas...just ask J.K. Rowling. Cheers!

Foolish like Watsa and Friedberg ;D The goal is to make money long-term with the least amount of risk. How anyone gets there doesn't matter...as long as you get there. I'm just wondering where my contrary indicator disappeared to this month? ;D Munger, where art thou? Cheers!

That's only correct over longer periods of time. For example, when you are in the midst of a normal insurance cycle, when premium pricing turns soft, you cannot reduce your operating costs as quickly as you reduce premiums written. Thus, you are going to see high combined ratios, even though you are doing the prudent thing by cutting back on premiums where the risk/reward isn't in your favor. When the market starts to harden, you generally do not see the premiums earned right away, but your operating costs have remained high. Eventually, you do start to see the effect of the premiums being written, and your combined ratios start to fall. As long as Fairfax's insurance subs show their historical trend of maintaining lower long-term combined ratios after acquisition, then investors should not be concerned with high combined ratios in the short-term. Cheers!

So for me it's more about investing than entrepreneurship. The latter seems about starting something and then cashing out. The former is about buying in and helping to develop it and take it to the next level (and then just keeping it). IMHO. It's called private equity Mark! ;D That's what you do with all your different vehicles and investments...just smaller scale. Cheers!