R. Richard Schweitzer

Buffett's Import Certificates Plan Could Pilot the Economy to a Safe Landing

Seems to me there may be a conflict with U.S. obligations at the WTO.

My guess is the ICs would be a violation of our treaty obligations.

Markel's a Buffett-In-Waiting - Barron's

There is a difference in the policy of buying operating businesses and aggregating their results (ROC) etc., from picking good "investments" in the form of stocks or interim capital provisions.

However, there is something to be said for a program of investing premiums for gains rather than "yields" in the fashion of Carl Lindner. But even that can get snagged in things like Chiquita and Kroger.

Unique means what the dictionary says.

Doug Kass's Killer Shorts - Barron's

Could S A start reporting, or linking to reports of long/short positions and changes, or finding a writer to indentify sources of that information on a daily current basis?

Why You Should Short Companies Doing Share Buybacks

In the words of a thousand lawyers:

"It all depends..."

Take the almost classic case of AFL, which borrowed funds for cash flow to cover buy-backs, at a particular period.

Consider: interest deduction; cap gains rates (in that era) to investors looking to the liquidity positions of portfolios; classic shift to "cost of capital" approach (the absolute measure of quality of operations); greater ROE. Interest rate lower than net earnings rate (i.e., AFL surplus rising at greater rate than interest rate).

A thing to look out for is the a big build up in cash position that may indicate that the enterprise can not deploy its assets profitably, or at least, if so, at a less profitable rate.

Radio Value Opportunity Beckons: Calling Warren Buffett

You are on the "money" in the valuation of cash-flow business.

This particular one requires a "holdings Company" concept to realize the optimum "value" (basically re-use) of the cash flow.

In the case of B-H, the units are too small for the necessary attention to the value generators (particularly programing adjustments and demographics adaptations). But they would fit inside the shells of older "news" and "entertainment" enterprises.

What seems to be missing is the ability of the aggregated broadcasters to deploy their cash flows for optimum base growth. That kind of "stall-out" in optimum deployment is seen to some degrre in other cash generators such as Ebay, MSFT, and some lessser players. The use to buy back shares (retire capital from earned surplus) shows one of the deficiencies of the class and level of managements in broadcasting.

What is the most nearly optimum deployment for such cash flows?
Would it be into asset acquisitions at depressed cycles? Other operations that require cash infusion whilst the utimate product is in process (a la motion pictures; realty development; mining?)?

Apparently missing is that extra level of "management," basically proprietary management, that deals with using the "milk" from the cash cow - above and beyond the operating managers that make the cow produce cash.

Buffett's Offer: Great for Him, Terrible for Bond Insurers

Note that W.B. does not say that the R/I premium is based on the risk or on it's "term return" (as say in Cat Covers) it is based on the benefit to the capital account (statutory surplus) of the reinsured. This is not R/I, it is 'banking.'

The NYSID can put together a R/I "pool" that the legislature would approve in a heartbeat, that would run for a term (about 15 years), banks, funds and public authorities could fund it quickly with a reasonable rate of return (not 14% tho').

W.B. has shown the way! Lead, follow or get out of the way!