Eric50

http://www.globenewswire.com/news-release/2016/01/28/805775/0/en/Overstock-com-Accepts-20-Million-to-Settle-Market-Manipulation-Case.html $20m settlement + market cap of $270m = $290m or +4%

I'm really confused. Not even kidding. Not sure if what's going on is selective memory like is so often the case given that this is the corner of B. and Fairfax but they did one about 1 year and a couple of months ago. http://www.fairfax.ca/news/press-releases/press-release-details/2013/Fairfax-Completes-C431000000-Bought-Deal-Financing/default.aspx And that one was to raise money because they had to put a bunch of it into Blackberry as well as supplement the capital needed because their hedges forced them to fork over $2 billion in cash in 2013. So I don't understand the shock, the out of character, and never thought they'd do a bought deal comments. At least for this one, looks like you guys have a consensus that it is to buy a quality insurer. Disclaimer: I haven't reviewed the deal myself or anything about Fairfax since the last quarter, so I have zero opinion on the deal. My review process is a consistent one for all companies I follow/care about. I wait for the annual report to come out as well as the letter. And I first read the whole annual report and decide for myself how they did and then read the Chairman's letter to see what he has to say about how they did to see if I agree. I haven't even reviewed the transcripts from the recent conference calls. So I have no comment other than pointing out the other bought deal in the not too distant past. I missed the earlier bought deal. This is more a matter of principle than anything else. My view is that bought deals just show disrespect towards existing shareholders. They are diluted and have no opportunity to keep their stake in the business. That's unfair. Plain and simple. I was just surprised that Prem Watsa engaged in that. I still respect him and what he has achieved a lot but I'm disappointed that he did do that, even if I understand the circumstances and that it's a common practice in Canada (Bought deals are Canadian specific, they aren't allowed in the States.) In addition, bought deals can have other ramifications. They tend to mess up the trading and attract the wrong crowd, people who want to make a quick return and get out fast. I doubt that's the kind of shareholders Prem wants for the long term. But it might be our opportunity to buy cheaper in the next few months.

FFH doing a bought is quite out of character.... I never thought they would do that.... Very, very surprised.... Not very fair to existing shareholders..... The good news is that bought deals typically attract a crowd that wants to make a quick buck (Not the long term kind that I thought FFH wants).... So I suspect there will be opportunities to buy at a lower price in the next few months....

Good presentation with scenarios for upside potential http://www.slideshare.net/mobile/StoneStreetAdvisors/ostk-public-presentation-w-updated-about-ssa-v-2015112?ref=http://www.valuewalk.com/2015/01/overstock-valuation-analysis/

Interesting article on amzn pricing strategy: http://recode.net/2015/01/13/how-amazon-tricks-you-into-thinking-it-always-has-the-lowest-prices/

Must watch interview with Bezos. Very interesting how the model has evolved to become almost a VC business. http://www.businessinsider.com/amazons-jeff-bezos-on-profits-failure-succession-big-bets-2014-12

Good right-up with some historical data http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works

Very biographical http://chennai36.iitm.ac.in/the-only-way-was-to-go-up-prem-watsas-interview-with-chennai36-part-1/ http://chennai36.iitm.ac.in/what-the-mind-can-conceive-the-mind-can-achieve-prem-watsa-interview-with-chennai-36-part-2/

Thanks Dazel for the Royal Gold and Millrock answers and sorry to see you go. I hope you'll reconsider. For those who are worried about the recent slide in price, remember that it's always darker right before dawn. Eric

All, I'm updating my estimate/model from a couple of years ago. ALS owned 529k shares of Royal Gold (RGLD) and 7932k shares of Millrock Resources (MRO.V). I can't find anything in the latest financial statements... Do you know if they still own those? Have they sold them? Thanks, Eric

Harris Kupperman interview: http://classicvalueinvestors.com/i/2013/12/interview-with-harris-kupperman-ceo-of-mongolian-growth-group-2/

http://seattletimes.com/html/localnews/2022337460_childrensdonationxml.html

http://www.thinkadvisor.com/2013/10/14/bob-rodriguez-grades-obama-calls-government-chaos?ref=hp&page_all=1 Love his answer to the last question: A final thought on the debt ceiling impasse? Children must play.

I read Mc Donald's: behind the arches from John Love about 20 years ago (http://www.amazon.com/McDonalds-Behind-John-F-Love/dp/0553347594#). It's a very good read on entrepreneurship and the world of franchisers/franchisees. It tells the story of Ray Kroc and how he built Mc Donald's. I lost the book in a move-in, but I remember a couple of key lessons: - Mc Donald's struggled at the beginning as it charged its franchisees much less than what was then the practice. MCO had to reach a certain size before they became profitable. The first franchisees quickly made a lot of money while MCO was struggling. But it paid off in the long term as it attracted a much higher quality of franchisees; - They own a lot of land. Actually the first CFO thought the company was in the real estate business. I view that as downside protection; - From early on, they had a relentless CEO (Turner) who was critical in developing a disciplined cookie-cutter approach. Kroc was more the guardian of values. This is probably a very good introduction to the world of franchises. Eric

I'm also using HSA Bank with Ameritrade. I researched the topic a couple of years ago and HSA Bank was the only HSA account option I could find where you could manage the investments yourself. Everything else was in mutual funds.