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No. of Recommendations: 4
Sorry, I hit the submit command by accident before finishing.

Q5 WB (continued) "We can stand $1-2 bill. in losses,but not $40-50 bill. An aggregation loss possibility is now a prime concern, if we write poorly, not only can we not pay new claims, but we can't pay our existing payouts"

Q6 WB "I don't really think about bank PE's that much, Banks are not a very homogeneous group. People always want a formula, but it doesn't work, each bank is different. We like the banks we own (M and T, WFO). Can you understand the bank and predict the future cash flows?"
CM "We actually have failed to properly estimate banks: we're very cautious. We worry that non-bankers will ruin a bank-we think about the old quote "there exist more banks than bankers". "

Q7 I had this as:
CM "You ask alot if you ask for a simple indicator to uncover fraud. Many smart people are fooled and many smart people slip into frau
dulent behavior."
WB "We pass on alot of opportunities. If someone talks about EBITDA our eyes glaze over; lots of frauds talk about this. You all should use EBITDA as a warning, either they're conning you or themselves.EBITDA is not cash flow: usually the cash is flowing out. Taxes and interest are an expense; depreciation is the worst kind of expense there is. We're not fooled by Fancy Dans, usually telling you things too good to be true"
CM "Sometimes this is incredibly obvious. Solomon was lending money to Maxwell "The Bouncing Check" while we were sitting on the board-this shows the influence of outside directors."

Q8 WB "You can just tell how the people are, when they speak to you about their business you can tell if they care. The economics of a business manifest themselves. Most good businesses can be understood in a very few minutes. I don't know which auto makers will suceed no matter how many people I speak to. You can drag this out and interview lots of people and competitors, but why?"
CM "The usual merger result is failure (2 out of 3 fail), ours are succeses,why? We wait for the no-brainers"
WB "We wait for the fat pitch. This doesn't mean people are giving away the store; good deals and businesses simply become available from time to time."
CM "Endless due diligence and no common sense is corporate Hell"

Q9 Cryogenics advocate

Q10 WB "FOL has 40-45% of the men and boys underwear market with great brand acceptance. They are the low cost producer of a basic product. This is a first class business made to order for us, but only with the present management. Management now only has to worry about building efficiency and the brand. We would not have paid even $1 for FOL with the old mngmnt in place."
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