Jurgis

McLean writes rather well argued and level-headed articles, especially when she gets big-enough word count. Although parts of this are probably recap from her book.

annual report 2017: "...these losses are significant but we consider them unrealized and expect both of them to reverse when the grand disconnect disappears-perhaps sooner than you think..." or not? We'll see in a year! Grab popcorn!!

The implication seems to be that you had to wait 25 years to break even! But adjusting for dividends and inflation, it only took 7 years for investors to break even!! The dividend yield at the stock market bottom in 1933 was close to 14% !!! http://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html?_r=0 !!!! A better measure of market performance would be from Shiller data or even simulated S&P 500 numbers, since Dow is not a good representation of the market and it was unduly impacted by its decision in the late 1930's to drop IBM from its index! Thank you! Vinod! I love the exclamation points!!!! 8) +1 !!!!

"You can stick Biglari ... to the side of the car" ;D

Wonderful news! Two gurus in one stock. This is rare. I see that the stock is trading at 0.1 p/book. This is really cheap. I am not sure why book is so expensive though. Perhaps it is first edition? I'll buy as soon as cup and handle mining formation is established.

I'd buy too. Are there any gurus in this? I don't buy anything that's not a cloned idea. And only genuine gurus please.

D*mn, I want to move back to LA. 8) Missing the smog and the earthquakes, man.

You seem to forget that SP500 operate internationally, so equating their growth with US GDP growth is rather tenuous. Most of their growth could come from EM that could grow 5%+. That said, I won't argue with ~5%'ish return for SP500 for next decade from here.

And I was not answering to you. Have a good one.

Since people are asking, I pretty much agree with maverick's, morningstar's, and Picasso's positions. I also find the propaganda of some longs that government's actions destroyed US, capitalism and apple pie to be distasteful. It's pretty much mind f*cking for your monetary and ideological positions. Edit: I think that government probably should have nationalized GSEs from the very beginning instead of current semi limbo state and 2012 (?) NWS - not that this would have made longs happier. That said, I have a not-16% position because I believe the expected probable return is somewhat attractive. And I will abide with whatever judicial outcome we get. ;) It reminds me, that it's not so bad, It's not so bad

BTW, Bruce can blow up even if he wins litigation eventually. All that needs to happen is continued redemptions from his funds because of bad performance. Assume that litigation win comes in 5 years (yeah, I know people suggested that things will resolve faster - do you legal types have a litigation maturity graph? what's the best/median/worst case?). If FAIRX continues underperforming for couple more years, he can lose enough capital to need to sell FNMA positions into weak market. That's one of the reasons I think his position is crazy. Anyway, I should shut up. Yo.

Value is a funny term though. Do you meant market value or intrinsic value? Because I could make a good argument for intrinsic value being higher than market value for a number of stocks. (Jeez, I hope I can -- otherwise, we're all in the wrong business...) I meant 2x book. I know that there's a good argument for paying for the jockey and buying a mutual-fund-alike (sans redemptions) for 2x book. And yet, would you?

Somebody asked if Bruce was crazy to put 16% into this. OK, I will answer without resorting to Eminem: IMO, he is crazy. That's somewhat based on his other positions too, BTW. The counterargument to the "Bruce knows sh17, so he increases position" is "Bruce is blinded by his positions and biases and so he increases position". I'm in the second camp, but I don't give a crap about Bruce, his motivation, his performance and his fund, so I'm not gonna argue about it here. You can do anything you set your mind to, man Yo

Yes, also for mutual-fund-like companies (like PSH and perhaps old BRK), there is a question why would you pay more than 1x the value of market-traded-investments. People pretty much laughed at Ackman when he suggested that PSH should trade at 2x. Perhaps they did not like the jockey though. ;)

People who think that BRK was worth 10x book value in 1965 should buy their favorite platform company at 2x today and hold forever. 2x for PSH anyone? 8) No, seriously, I'm only partially sarcastic. If you believe in the jockey a lot, you could assign them a lot of value and buy their platform for 2x or 3x or whatever. Personally, I don't have confidence in any jockey to do that, although I think some of my purchases (FRMO, PRDGF, etc.) may look as if I do.

Quicken. Requires work though.

Are you implying that they will do more than 10-12% compounded if interest rates stay low? If only it were really that easy. Why would anyone buy any of these stocks if they did not expect at least 10-12% compounded for long period of time? So, yeah, I think he's implying this and I would imply it too for the ones that I hold from this list: aapl, bac, brkb Although I don't hold wfc, axp, ibm, xom, I can see reasonable scenarios where all of them return >10% for coming 10+ years.

Oh, there goes Berkowitz, he choked He's so mad, but he won't give up that easy? No He won't have it, he knows DC's whole back ropes It don't matter, he's dope, he knows that, but he's broke He's so stacked that he knows...

Purely anecdotal: a friend was looking at used Camrys last week. It seemed the prices are ~10% or more up from what I paid two years ago. Maybe prices dropped compared to last year, but longer term they don't seem to be down.

We need Picasso quoting Eminem here pronto.

Careful guys. Mr. Big will kick your ass for disrespecting him.

I'm just happy that I live in a "global city" Boston and can buy an OK house in OK burbs for $400-500K or so. Not sure what I would do if I was forced to live in the "global city" of Silly Valley or some other multi-million $ place. Of course, part of my choice was not to live in Silly Valley. Price ranges differ for different people. For me, the RE is not worth it when you have to pay an amount of money that you could just retire on in cheaper but still OK location. Somewhere in the range of US$1M-2M and up. Just for fun in OKish exurbs of "global city" of Chicago, you can buy places for $200K or so... Climate not much different from Toronto. ;)

It's interesting that Buffett is not on the list. Did he sell BRKs "Indefensible" and is flying on his personally paid NetJets account nowadays? Probably he did, but I did not realize it up to now.

Good post. All I know about investing I learned from LoL. Who needs Bloomberg terminal.

Sold X 2018s, still have some X 2020s quoted above .70 now. Fido sucks - no inventory on practically anything I look at: X, XCO, SFY, CHK, DNR, etc. (But I won't switch to IB, gonna continue suffering with Fido :) ). BTW, not saying any of these are buys, I just don't want to spend lots of time researching if I can't buy anyway.