March Idea of the Month: Back to Baby Berkshire?
by Travis Johnson, Stock Gumshoe | March 20, 2015 4:15 pm
Checking out a beaten down conglomerate, plus a couple personal buys
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Source URL: https://www.stockgumshoe.com/2015/03/march-idea-of-the-month-back-to-baby-berkshire/
Happy Birthday Stock Gumshoe!
Congratulations on the first eight years and here’s to many more.
Is there cake?
bonne anniversaire
bonne anniversaire
bonne anniversaire
bonne anniversaire.
that is French for Happy Birthday.
It has no other words but fits the tune
but you have to pronounce the final
silent e in line 3 to make it work.
That is a French fudge. But not a
gateau. Why don’t we get a gateau??
Actually, it’s Bon anniversaire. Anniversaire is masculine.
A very happy birthday and to many more!
Ditto to all above. Although I don’t comment much, I look forward to the daily writings and devour them with great relish. Hope there is at least another 8 years of writing in you !!!!
Travis,
It’s so generous of you to give US such wonderful gifts (especially Lancashire and Leucadia) on your youngest child’s birthday! Thank you, kind sir.
Happy Birthday, SGS. What would I do without you? Aside from losing money? 🙂
Hi Pockets,
Oh I don’t know? Maybe jousting with windmills or investing in Biotechs? 🙂 Just kidding brother. Have a great weekend!
V/R
Tom
Travis,
Happy Birthday Stock Gumshoe! I talk this site up to anyone when the discussion shifts to investing. Another great article as always! I am out of the gold/precious metal/ mining companies for now. I was doing great for awhile last year with SDPI and EGO but even when the price of gold (for example) was surging the impact on my personal holdings was not always consistent (for a variety of reason). Over the years I just have been unable to profit in this area. I still think both SDPI and EGO have great potential as does SAND so I have kept all of them on my watch list. I remain much less enthusiastic about MIL which I bailed out on in July at $7.50. Thanks again Travis for your invaluable insight and for the creation of this superb site. Hooah!
V/R
Tom
How do I buy Lancashire in US? LRE.L brings up UK listing.
Happy Birthday,
Chuck
Got it – LCSHF
Just found it
Happy birthday thinkolator…………..well done Travis. Only eight and already able to analyse teasers like a PhD
Hi Travis i follow you from across the pond and recommend you to all sorts of people. I enjoy your approach to investing and your irreverance for those who take themselves so seriously. charles o’malley
Thanks Charles!
Happy Birthday, Stock Gumshoe!
A wonderful occasion indeed! GS has been literally life changing for me, and I can’t thank you enough, Travis!
Many happy returns to Stock Gumshoe, its creator, and the entire crew, including both family and staff. Here’s hoping the Thinkolator has indestructible parts, and can continue to assist the Gumshoe Faithful for many more years to come,
Travis, do you believe US $10.50 is a fair price to pay for Altius Minerals? What is your estimation of intrinsic value? Trying to figure out if there is any margin of safety at that price. They just announced a dividend today. I really like the LT compounding power of a company like Altius. It has many Buffett type qualities. Limited expenditures to grow the business, favorable long term economics, and the ability of royalty payments to rise with inflation…looks like a wonderful little business Dalton has created. I would appreciate any input.
I’ve paid more than this price for some of my shares, though that was when there was substantially more optimism about iron ore. I last bought around US$9.50 on the merger dip, but I have a lot of confidence in their ability to perform very well over the next decade. Over the next year, I don’t know — that depends on potash, nickel and copper prices and, far more important, investor sentiment about commodities in general.
The folks who built Lancashire are starting a new firm, including CEO Richard Brindle who stepped down from Lancashire last year — looks like it might turn out to be interesting, though their strategy of investing almost like a “hedge fund of funds” on the investment side opens them up for the possibility of really terrible investment performance. Worth a read, though they won’t be public for at least a few years probably: http://www.royalgazette.com/article/20150330/BUSINESS04/150339997
So yes, alternative money keeps coming in to reinsurance — no sign of improving margins in sight, and lots of M&A in the sector as many firms seem to think that economies of scale or consolidation will solve the “cash oversupply” problem in insurance. Fosun, which I’ve written about once or twice (still don’t own, unfortunately), has also been on a tear (lots of news about their big Manhattan building purchase and plans, and their acquisition of ClubMed) and is planning to buy up more insurance companies — in China, where insurance companies trade well over 2X book in many cases, Western insurers who trade near book value look like bargains.
Happy Birthday a little bit late. I enjoy reading your columns. It keeps me from falling prey to the long winded advertisements for the best way to make it in the market. I have developed a view about these “pitches”: the longer the pitch, the less likely it is to be valuable. And if they also show you an arm illustrating what they are saying, it is even less valuable.