chengjunli2003

ECRI: WLI Registers Largest Three-Month Gain in History

Section in Warren Buffett's 2008 shareholder letter related to Black-Scholes model: "It’s often useful in testing a theory to push it to extremes. So let’s postulate that..."
Applying similar methodology: if some indicator drops from 100 to 1 in 18 months, then rebound to 10 in 3 months, then wow! that indicator had just registered the historical largest gain of 900% in 3 months! The future must be bright.

Fairfax Financial: Anatomy of a Hatchet Job

Excellent article. One comment:
Mr. Tilson: I think you get the float cost wrong. If you read the FFH AR page 7 table more carefully you will see (2.5%) rather means a positive (not negative) cost of the float. Reading the immediate paragraph following the table clarifies this even further because the 3.3% figure for 2007 means actaully a negative cost.