Tuesday, September 20, 2005
Katrina, Carol Loomis, Rating Agencies, and Sequoia
In the news, Berkshire expects to take down 3-5% of Katrina's damage.
A great article by Carol Loomis, one of the best business journalists out there and Buffett's annual report editor, about her 51 years at Fortune. She writes specifically about her relationship with Warren here.
Interesting piece from BusinessWeek on the rating agencies. I don't think Moody's moat is going away anytime soon.
And finally, a must read for value investors, the transcript of Sequoia's annual meeting. Includes some extensive Berkshire discussion...a quick summary of the case for the compounding machine:
"I think one of the interesting things about evaluating Berkshire is just considering
that you’ve got the smartest investor of all time, as far as I know — Keynes or somebody might
give me an argument on that — but you have Warren carrying a portfolio of $105 billion that
yields less than 3% after taxes. And here’s a person who historically has averaged a total
return of about 21% after taxes. When we tell you Sequoia’s total return is 16%, that’s before
taxes. Warren will not make a 21% return in the future. But if you ask me, is he capable and
healthy enough, etcetera, to make a return of 10% or 12% over the next ten years — and I think the insurance tables might lead you to think that he could live that long — well, I am making a bet that he will. And then you take the difference between the 3% and the 10%, and
you come up with a fairly large number that is potential earning power just sitting there
waiting for the right opportunity."
A great article by Carol Loomis, one of the best business journalists out there and Buffett's annual report editor, about her 51 years at Fortune. She writes specifically about her relationship with Warren here.
Interesting piece from BusinessWeek on the rating agencies. I don't think Moody's moat is going away anytime soon.
And finally, a must read for value investors, the transcript of Sequoia's annual meeting. Includes some extensive Berkshire discussion...a quick summary of the case for the compounding machine:
"I think one of the interesting things about evaluating Berkshire is just considering
that you’ve got the smartest investor of all time, as far as I know — Keynes or somebody might
give me an argument on that — but you have Warren carrying a portfolio of $105 billion that
yields less than 3% after taxes. And here’s a person who historically has averaged a total
return of about 21% after taxes. When we tell you Sequoia’s total return is 16%, that’s before
taxes. Warren will not make a 21% return in the future. But if you ask me, is he capable and
healthy enough, etcetera, to make a return of 10% or 12% over the next ten years — and I think the insurance tables might lead you to think that he could live that long — well, I am making a bet that he will. And then you take the difference between the 3% and the 10%, and
you come up with a fairly large number that is potential earning power just sitting there
waiting for the right opportunity."
Monday, September 19, 2005
The Onion on BRK's Gillette
Many of us know that the Onion is way ahead of it's time. Here is yet another example, with BRK's Gillette holding as an example.
Feb 04
http://www.theonion.com/content/node/33930
Sep 05
http://news.yahoo.com/s/nm/20050914/bs_nm/manufacturing_gillette_dc
Feb 04
http://www.theonion.com/content/node/33930
Sep 05
http://news.yahoo.com/s/nm/20050914/bs_nm/manufacturing_gillette_dc
Saturday, September 17, 2005
Buyer of BRK and Bud
May I go on record to say that, if you haven't ponied up yet, now is a promising time to buy BRK and BUD. If you are an ex-student with a bulging credit card, try www.sharebuilder.com.
Humbly yours in the faith,
Humbly yours in the faith,
Monday, September 05, 2005
Jimmy's set list from the Wrigley Show
Headed down to Wrigley Field, for the Labor Day weekend show... Well, actually, I spent it unsuccessfully apartment hunting in New York, but here's the set list from Cousin Jimmy's show in Chicago. #20 and #27 are both of interest...
National Anthem/Hot Hot Hot
1. Piece of Work
2. Ragtop Day
3. Hey Good Lookin'
4. I Will Play For Gumbo
5. Changes in Latitudes
6. Come Monday
7. Last Mango in Paris
8. Woman Going Crazy on Caroline Street
9. License to Chill
10. Son of a Son of a Sailor
11. Cheeseburger in Paradise
12. Volcano
13. Brown Eyed Girl
Intermission
14. Why Don't We Get Drunk
15. La Vie Dansante
16. Banana Republics (dedicated to Steve Goodman)
17. Southern Cross
18. School Boy Heart
19. A Pirate Looks at Forty
20. Take Me Out to the Ballgame
21. The City (w/ Mac)
22 It's 5 O'Clock Somewhere
23. One Particular Harbor
24. Margaritaville
First Encore
25. Fins
26. Scarlet Begonias
Final Encore
27. City of New Orleans (played from bleachers)
National Anthem/Hot Hot Hot
1. Piece of Work
2. Ragtop Day
3. Hey Good Lookin'
4. I Will Play For Gumbo
5. Changes in Latitudes
6. Come Monday
7. Last Mango in Paris
8. Woman Going Crazy on Caroline Street
9. License to Chill
10. Son of a Son of a Sailor
11. Cheeseburger in Paradise
12. Volcano
13. Brown Eyed Girl
Intermission
14. Why Don't We Get Drunk
15. La Vie Dansante
16. Banana Republics (dedicated to Steve Goodman)
17. Southern Cross
18. School Boy Heart
19. A Pirate Looks at Forty
20. Take Me Out to the Ballgame
21. The City (w/ Mac)
22 It's 5 O'Clock Somewhere
23. One Particular Harbor
24. Margaritaville
First Encore
25. Fins
26. Scarlet Begonias
Final Encore
27. City of New Orleans (played from bleachers)
