First saw it from flyblog. Kind interesting. Today WSJ revealed more haggling between banks and Fed.
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Federal Reserve Stress Test Method Revealed
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Author: stlplace
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(Update) RationalWalk has a much more comprehensive piece on Berkshire Q1 results.
(Original) News from San Jose Mercury News. Quote:
Berkshire says it sold 13.7 million of its 79.9 million shares of ConocoPhillips during the first quarter to generate a loss that can offset past capital gains taxes.
More details from its Q1 earning report (PDF). Again quote:
…Investment losses from other-than-temporary impairments for the first quarter of 2009 predominantly relate to Berkshire’s investment in ConocoPhillips common stock. The market price of ConocoPhillips shares declined sharply over the last half of 2008. In the first quarter of 2009, Berkshire sold approximately 13.7 million shares of ConocoPhillips and sold additional shares in April. Although Berkshire expects the market price for ConocoPhillips shares to increase over time to levels that exceed original cost, Berkshire may sell some additional shares before the price recovers. Sales in 2009 were or may be in anticipation of other investment opportunities, to increase overall liquidity and to carry back realized capital losses to prior years for income tax purposes…
My thoughts
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nVidia
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nVidia got no love from the street these days. After yesterday’s earning (earning call here), the stock dropped more than 10% today amid weak (margin) forecast. This exemplifies that the market tends to be short sighted.
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Yahoo Tech-ticker
Disclosure: I don’t have BAC shares. I think, long term (I mean really long like 5 years) BAC is a good call option for US economy recovery. I don’t agree with Henry Bloget on this aspect: I think Ken Lewis is the right man for the job.
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McDonald started the war on premium coffee
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Saw the McCafe (aka better coffee at McDonald) ad on TV (not on YouTube yet). But here is a Cantonese version of ad (via. YouTube).
According to ChicagoBusiness, big Mac maker poured $100 million for the ad campaign. A really chilly Summer for Starbucks is coming 😀
Discloure: no longer have MCD position.
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Arch Coal CEO Steve Leer interview
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(Update 04May09) Buffett CNBC interview. (Monday Becky Quick)
I did not go to the Berkshire annual shareholder meeting, partly because of the recession (cost cutting), partly because I sold the stock recently (note: one does not have to buy stock to get the admission ticket, they sell it at $5 on eBay). There are live blog and twitter on the meeting (6 hours Q&A), such as MarketBeat (WSJ), CNBC BuffettWatch and NY Times Andrew Sokin. But there are no webcast, because Warren and Charlie are old fashioned.
Succession plan
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Will Newspapers go away one day?
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I remember a few years ago Warren expressed his dismal view on Newspapers future (in his annual shareholder letter). A few days ago Redstone (the controlling shareholder of CBS and Viacom) said something similar in an interview.
“The reason we have not gone to newspapers is because its a slow growth industry and I think they are dying. I’m not sure there will be newspapers in 10 years. I read newspapers every day. I even read Murdoch’s Wall Street Journal.”
I am a newspaper reader. I subcribed to Barrons and WSJ (paper format). Both my wife and I preferred the paper format, because we can mark on it, and it seems to me I think more when read something on paper (vs. computer). Lately I am seeing some interesting phenomena: the WSJ gets thinner and thinner; sometimes I did not receive the paper.
Business problem of newspapers
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Berkshire annual meeting 2009, David Sokol
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(Update 02May09) 4 ways to follow the meeting.
(Original) David Sokol is the Chairman of Mid-American Engergy holding, a subsidiary of Berkshire Hathaway (NYSE: BRK.A; BRK.B). He took interview from Becky Quick of CNBC today. The Berkshire annual shareholder meeting starts tomorrow. CNBC BuffettWatch will follow minute by minute. Some people expect shareholders will ask some real questions this time, unlike in the past, let Buffett go loose by asking general questions like how to be successful in life.
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Stock misconception: listen to experts
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A guranteed way to lose money: listen to so-called experts. Barrons is a pretty reputable magazine in investment community. I read them, but I don’t listen to them. Here is an example: the reporting card of Barrons Roundtable 2008. Every year (Jan) Barrons will assembly a group of experts, from famous money managers to analysts such as Bill Gross (Pimco) to Abey Cohen (Goldman Sachs), discussing the outlook of the year, and each expert will share some picks.
Here is an example how things go terribly wrong (I hope no one copied his strategy).