Author Topic: WSJ Article on Fairfax  (Read 3350 times)

accutronman

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WSJ Article on Fairfax
« on: August 25, 2010, 06:42:18 PM »
Great article on Fairfax in tomorrow's WSJ and how Prem is wagering $200M on a decline in CPI. The guy is a genius and I'm willing to bet the stock price will continue to rise.


stahleyp

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Re: WSJ Article on Fairfax
« Reply #1 on: August 26, 2010, 05:21:42 AM »
It's on C1 for those that are interested. The article gives an example of a 2% annualy deflation average over the next decade, which would make the value of the insurance at $9 billion. With all the stimulus, I can't see 2% annual deflation, but then again, I'm not nearly as wise as Watsa.
Paul

longinvestor

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  • Never interrupt compounding unnecessarily -Munger
Re: WSJ Article on Fairfax
« Reply #2 on: August 26, 2010, 03:21:50 PM »
With all the stimulus, I can't see 2% annual deflation, but then again, I'm not nearly as wise as Watsa.
Hypothesis Ho: Govt stimulus will work
Hypothesis H1: Govt stimulus wont work

Prem is betting that Ho is false & that there are precedents like Japan in the 1990's.

bargainman

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Re: WSJ Article on Fairfax
« Reply #3 on: August 27, 2010, 01:31:24 PM »
Is there a link to the online article?

MVP444300

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