Sage of Sugar Land

Berkshire Serves Up Solid Results in a Difficult Economy

Compliments to Ravi Nagarjan for boiling down various aspects of Berkahire's activities and results into a realistic and easily understood form. His periodic assessment of Berkshire's performance and valuation have been a pleasure to read--it is a welcome departure from some others who try to "create headlines", but often display a total lack of understanding of what Berkshire's and Buffett's investing philosophy is all about--they cater to the crowd.

I have been an owner of BRK for almost 25 years, and a huge admirer of Buffett and Munger. I am also aware of the (many) mistakes Buffett has made and which he has so openly and graciously admitted.

Thank you, Ravi, for providing these analyses--they are especially useful for those who do not have the time to review the quarterly reports in detail.

Lessons from the Madoff Scandal: Deciding Which Funds Are Worth an Investment

So many words to convey so little useful information and a lot of misinformation.

Berkshire Hathaway is a Hedge Fund?--does the author have any clue about the company's business model and structure?

Buffett has made a rookie error?--Warren's sale of the long term index puts is nothing more than an insurance policy written with an adequate premium. Buffett has been in the insurance business for over 35 years and there is probably no one else who understands the business better than he does. To a rookie, everyone looks like as rookie.

Berkshire's Puts: Not Such a Great Idea

I don't know who this guy is, or what his reputation is. What is Cross Gamma Effect--seems like something from nuclear science. No wonder Buffett and Munger pay no attention to these esoteric and meaningless ideas.

Sure, looking back, the puts were not such a great idea. But even WORST case--all pertinent indexes down to ZERO--would reduce future book value of BRK by 15 to 20 percent. An unpleasant, but far from disastrous scenario. But then again, no one expects the indexes to go to ZERO.

Does this guy read the annual reports? Sure, BRK's EQUITY INVESTMENTS are highly correlated to the market. But in recent years the company's income from its operating businesses far outweigh the growth in equity investments. And the Operating businesses are doing just fine.

Focusing on the put option issue is like the guy who is unable to enjoy the Christmas lights because he is so distracted by the one string that is not lit.