The underlying reasons Uncle Warren and Charlie were willing to do this deal with AIG are mainly two-fold:
1. They are so old, they won’t be around when the final payouts are made, and won’t be accountable if it turns out bad… but the stockholders of BH will.
2. They KNOW the economic returns in the markets will RISE significantly under TrumPresident, justifying their optimistic discount rate implied by 10.2 / 20 = .501. Side note: it’s interesting that the discount factor is a fraction of a point over 50%. Actually, it’s possibly chosen / by design.
Buffet and Munger ain’t gettin’ any younger.
For risky deals they still got that hunger.
Warren and Minger, one a typo, both bitter clingers,
Won’t credit TrumPresident for their projected lower taxes & higher yields.
But Warren will, at any opportunity, give him the middle finger.
Polar, we have suspected that Uncle Warren has been leaning to cognitive dysfunction and this story about sums it up. He also was a big Democratic/Obama supporter and that also lends credence to his mental state.
They are smart guys, but they’d NEVER admit that TrumPresident’s impact on the US and World economy will increase yield rates. So, for that, they don’t deserve my complete respect.
A discount rate of 50.1% sure looks like it was manipulated to be greater than half… Now, where’s my actuaries when you need ’em? A lunch discussion, for sure, tomorrow.
Yup; plenty of questions the actuaries could ask Uncle Warren about that 50.1% discount factor. But these loss portfolio transfer deals are super-secret confidential, and if anyone but Hillary Clinton were to email them, or otherwise distribute the details, they’d be prosecuted to the full extent of the law – as interpreted by anyone but Jim Comey. Clarification; FORMER FBI Director Jim Comey.
May 8, 2017 at 9:13 am
PolarBeaRepeal says:
Like or Dislike:
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Who is ‘Minger’? ANOTHER typo, obviously, (that’s two that I spotted today). Did the title writer intend to write ‘Munger’ or ‘Klinger’? IJ culpa, not bear culpa.
Just kidding on the typos. Interesting article. Only comment #2 of my first post is serious. But, re: #1, I’ve advocated that the closer to retirement a CEO gets, the more his/ her major decisions should be reviewed by a BoD. That applies for Buffet and Munger.
Actually Polar, you do a very good job with your posts. The left don’t like them much and try to hide them, but it often doesn’t work. Common Sense is a great attribute to have and Progressives have none of that trait.
Thank you. I just wish I had smaller digits on my paws, so I could type faster, thus produce more of these insightful comments … to edify millennials (sp?). But, it’s a hopeless cause to try to edify Libitterals on political issues affecting insurance.
Perhaps a useful suggestion to readers of these comments is to look for my posts which were censored…. as they likely provide the greatest insights the Libitterals wish to hide?
The way to do so is to click the blue indigo text that says ‘click to see comment’.
May 11, 2017 at 4:39 pm
Agent says:
Like or Dislike:
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3
Polar, getting your posts censored is evidence that you hit them where it hurts and they have a total meltdown. By the way, you need those large digits to climb on your iceberg that still hasn’t melted despite all the dire warnings on Global Warming and seas rising.
The underlying reasons Uncle Warren and Charlie were willing to do this deal with AIG are mainly two-fold:
1. They are so old, they won’t be around when the final payouts are made, and won’t be accountable if it turns out bad… but the stockholders of BH will.
2. They KNOW the economic returns in the markets will RISE significantly under TrumPresident, justifying their optimistic discount rate implied by 10.2 / 20 = .501. Side note: it’s interesting that the discount factor is a fraction of a point over 50%. Actually, it’s possibly chosen / by design.
Buffet and Munger ain’t gettin’ any younger.
For risky deals they still got that hunger.
Warren and Minger, one a typo, both bitter clingers,
Won’t credit TrumPresident for their projected lower taxes & higher yields.
But Warren will, at any opportunity, give him the middle finger.
Polar, we have suspected that Uncle Warren has been leaning to cognitive dysfunction and this story about sums it up. He also was a big Democratic/Obama supporter and that also lends credence to his mental state.
They are smart guys, but they’d NEVER admit that TrumPresident’s impact on the US and World economy will increase yield rates. So, for that, they don’t deserve my complete respect.
A discount rate of 50.1% sure looks like it was manipulated to be greater than half… Now, where’s my actuaries when you need ’em? A lunch discussion, for sure, tomorrow.
Yup; plenty of questions the actuaries could ask Uncle Warren about that 50.1% discount factor. But these loss portfolio transfer deals are super-secret confidential, and if anyone but Hillary Clinton were to email them, or otherwise distribute the details, they’d be prosecuted to the full extent of the law – as interpreted by anyone but Jim Comey. Clarification; FORMER FBI Director Jim Comey.
Who is ‘Minger’? ANOTHER typo, obviously, (that’s two that I spotted today). Did the title writer intend to write ‘Munger’ or ‘Klinger’? IJ culpa, not bear culpa.
My apologies for the headline typos. It was a late night:)
Andy Simpson
Just kidding on the typos. Interesting article. Only comment #2 of my first post is serious. But, re: #1, I’ve advocated that the closer to retirement a CEO gets, the more his/ her major decisions should be reviewed by a BoD. That applies for Buffet and Munger.
I’ve made plenty of typos in my past posts. But I have an excuse; traditional keyboard keys are much smaller than the digits on my paws.
Actually Polar, you do a very good job with your posts. The left don’t like them much and try to hide them, but it often doesn’t work. Common Sense is a great attribute to have and Progressives have none of that trait.
Thank you. I just wish I had smaller digits on my paws, so I could type faster, thus produce more of these insightful comments … to edify millennials (sp?). But, it’s a hopeless cause to try to edify Libitterals on political issues affecting insurance.
Perhaps a useful suggestion to readers of these comments is to look for my posts which were censored…. as they likely provide the greatest insights the Libitterals wish to hide?
The way to do so is to click the blue indigo text that says ‘click to see comment’.
Polar, getting your posts censored is evidence that you hit them where it hurts and they have a total meltdown. By the way, you need those large digits to climb on your iceberg that still hasn’t melted despite all the dire warnings on Global Warming and seas rising.