Recent Posts

1

Fairfax Financial / Re: Digit

« Last post by petec on January 16, 2021, 11:45:45 PM »

They still Own the same shares and prefs, as far as I know, but a lower % since they’ve just been diluted a bit.

Yes it should flow to book value.

2

Fairfax Financial / Re: Fairfax stock positions

« Last post by Parsad on January 16, 2021, 11:20:47 PM »

Shareholders will benefit this time because we get to keep the cash (reserves are in excellent shape with redundancy in their book again last quarter) to buy back stock as they did in 1990. Their best investment at these stock levels is to participate in the hard market, monetize non core assets and buy back their own stock..that’s it.

Couldn't agree more!  The fact that virtually all asset classes are fully valued, they will probably get the opportunity to also exploit the bond and equities market over the next 12-24 months.  But they don't need to do that to hit their targets...it would just be icing on the cake, just like the return of market price to book value.  Cheers!

3

Berkshire Hathaway / Re: Berkshire Hathaway - Break it up? - Size is the anchor of performance

« Last post by DooDiligence on January 16, 2021, 09:26:56 PM »

Thanks to all for tolerating my idiotic idea.
At least the question brought up some interesting info & perspectives.
edit: Also thanks to Ander for starting the discussion to begin with.

Does anyone know if WEB & Chuck read CoBF?
How can they not?

edit: Someone should ask at the next (virtual) AGM.

How could they resist the politics section?

Which handles do you think they're using to post in the politics section?

  derp

4

Berkshire Hathaway / Re: Berkshire Hathaway - Break it up? - Size is the anchor of performance

« Last post by IceCreamMan on January 16, 2021, 09:01:45 PM »

Thanks to all for tolerating my idiotic idea.
At least the question brought up some interesting info & perspectives.
edit: Also thanks to Ander for starting the discussion to begin with.

Does anyone know if WEB & Chuck read CoBF?
How can they not?

edit: Someone should ask at the next (virtual) AGM.

How could they resist the politics section?

Which handles do you think they're using to post in the politics section?

5

Fairfax Financial / Re: Digit

« Last post by Viking on January 16, 2021, 08:42:31 PM »

Nwoodman, thanks for posting. Can someone explain what a new $1.9 billion total co valuation for Digit Insurance means for Fairfax? Does Fairfax still own 49%? Will this new, much higher valuation for Digit flow though to BV for Fairfax when Q1 report comes out?

Fairfax certainly has a lot of significant tailwinds. The news just keeps getting better :-)

Here is a review of Fairfax’s ownership in Digit from 2019 AR.

Page 68: On December 23, 2019 Go Digit Infoworks Services Private Limited (‘‘Digit’’) entered into definitive agreements whereby its general insurance subsidiary Go Digit Insurance Limited (‘‘Digit Insurance’’) subsequently issued approximately $91 (6.5 billion Indian rupees) of new equity shares primarily to three Indian investors. This transaction valued Digit Insurance at approximately $858 (61.2 billion Indian rupees) and resulted in the company recording net unrealized gains on investments of $350.9 on its investment in Digit compulsory convertible preferred shares. The company also holds a 49.0% equity interest in Digit as described in note 6.

Page 72: On December 23, 2019 Digit entered into definitive agreements whereby its general insurance subsidiary Digit Insurance subsequently issued approximately $91 (6.5 billion Indian rupees) of new equity shares primarily to three Indian investors. This transaction valued Digit Insurance at approximately $858 (61.2 billion Indian rupees) and valued the company’s 49.0% equity interest in Digit at $122.3 at December 31, 2019. The company’s 49.0% equity interest in Digit is comprised of a 45.3% interest in Digit common shares and a 3.7% interest through Digit compulsory convertible preferred shares that are considered in-substance equity. Foreign direct ownership in the insurance sector in India is limited to 49.0% and as a result the remainder of the company’s investment in Digit compulsory convertible preferred shares are recorded at FVTPL as described in note 5.

6

General Discussion / Re: Why do Owner-operators Sell Their Business but Keep their Jobs

« Last post by villainx on January 16, 2021, 08:28:27 PM »

For a lot of people it is much more basic; family either doesn't want to take-over the business, or just isn't up to it.
The founder sells to monetize their life's work, and continues to run the business for both health (mental/motivation/physical) reasons, and something to do. Done well, it's a second wind that works well for everyone, and which can take many well into their 90's.

Often great businesses to work for, as they have both industry brains, a deep bench, and the capital to do meaningful and successful innovation. Also a lot safer, as they've been through the business building process, survived it, and fully understand the inherent business risks in their industry. The buyer just needs to make capital available as needed, and stay out of their way. All about emotional intelligence.

SD

I guess this is as good as any place to state survivorship bias, right?  Not disputing just easy to envision potential owner operators that fail once sold.  Uh, for my sake, I hope not too true.

7

Fairfax Financial / Re: Digit

« Last post by TwoCitiesCapital on January 16, 2021, 07:09:56 PM »

So how much is Digit going to trade for if it does an IPO on the Nasdaq? I think you have to consider this option
In this environment which comes along once every 20 or 30 years...why not cash in...would be huge $$$$ for Fairfax at the holding company level...support for the hard market and buybacks...what an opportunity.

Dazel

Would love to see them list 49% if they could get the same types of prices described as above. Not to cash out or support Fairfax business TBH, but to rapidly grow and take market share in the Indian markets.

8

General Discussion / Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?

« Last post by doc75 on January 16, 2021, 06:39:47 PM »

One needs to read FULLY the results of TauRx trials before recommending fire sale of that asset.

I've been reading them as fully as I can.  The point is that the trials were, by definition, a failure -- they missed their primary endpoints.  Post-hoc analysis is sketchy.

They just finished their next Phase 3 enrolment.  There seems to be growing buzz about tau-type drugs so I hope Dundee can sell TauRx at a reasonable (not firesale) price in the near future.   I certainly don't want them to wait until the results of the trial.  AD drug trials have a spectacular failure rate.

Of course I'd be very happy to learn your thoughts on their trials.  I'm not an expert and would be interested to hear a different perspective.

9

Fairfax Financial / Re: Digit

« Last post by Dazel on January 16, 2021, 06:02:59 PM »

So how much is Digit going to trade for if it does an IPO on the Nasdaq? I think you have to consider this option
In this environment which comes along once every 20 or 30 years...why not cash in...would be huge $$$$ for Fairfax at the holding company level...support for the hard market and buybacks...what an opportunity.

Dazel

10

Investment Ideas / Re: ATD/B.TO - Alimentation Couche-Tard Inc

« Last post by Morgan on January 16, 2021, 05:38:42 PM »

I’ll add a plus one for the book. Quite a good read and an impressive entrepreneur.