Fairfax Letter March 2014

[wisdom]

http://online.barrons.com/article/SB50001424053111904628504579431002134993072.html#articleTabs_article%3D1

Jeremy Grantham GMO - learning to live with a bubble

[obtuse_investor]

Commodity deflation marches on...

Full article: http://www.economist.com/blogs/buttonwood/2014/03/commodities-and-economy

Excerpt:

...the aluminium price is down 10% over the last 12 months, nickel 7.9% and lead 6.3%. Compared with a year ago, metals prices are down 10.2 per cent. With the important exception of oil, commodity prices in general have been weak over the past year (although there has been a recent pick up in food prices); the Economist all-items index is down 5.3% over the last 12 months.

[rogermunibond]

Hard commodities deflating. WSJ had a piece about ag commodities seeing 3.5% increases this year. Not as bad as 2008 but definitely soft commodity inflation pressures.

[Dazel]

http://www.bloomberg.com/news/2014-03-18/nickel-heads-for-bull-market-as-russia-clouds-supply-outlook.html

It depends who you ask...on defaltion or inflation...whatever is the flavor of the day gets the headline.

"crash" and "bubble" have become only the words the media cares about.

[yitech]

What Would You Do if You Were Prem Watsa? by Cove Street Capital
http://covestreetcapital.com/Blog/wp-content/uploads/2014/03/Cove-Street-Capital-Strategy-Letter-16-March-14.pdf

[cubsfan]

What Would You Do if You Were Prem Watsa? by Cove Street Capital
http://covestreetcapital.com/Blog/wp-content/uploads/2014/03/Cove-Street-Capital-Strategy-Letter-16-March-14.pdf

That is an excellent read - thanks for posting.

[giofranchi]

What Would You Do if You Were Prem Watsa? by Cove Street Capital
http://covestreetcapital.com/Blog/wp-content/uploads/2014/03/Cove-Street-Capital-Strategy-Letter-16-March-14.pdf

That is an excellent read - thanks for posting.

I agree: a good read. Though, I would say the author focused very much on what went wrong in the last 3 years, and not nearly as much on what went right... Of course, what went right has yet to produce gains and significant financial results, which imo will materialize in the future. Therefore what went wrong I think is much easier to see than what went right.

Gio