Quote of the Day

Arbitrage: Arbitrage is the practice of taking advantage of a price differentials. Buffett has typically practiced risk arbitrage. With risk arbitrage, a stock price trades in the market at a discount to some future value. In particular, he has looked to invest in large merger transactions where the merger has been publicly announced and is considered to be a friendly event. Buffett counsels that investors should answer four questions in order to evaluate a risk arbitrage situation: 1... more

In addition to Berkshire’s permanent equity holdings, Berkshire also maintains interests in other equity marketable securities. In 1993, these holdings included General Dynamics, Wells Fargo, Gilette, Federal Home Loan Mortgage Corp. and Guinness plc. The main difference between Berkshire’s permanent equity holdings and marketable equity holdings is on the sell condition. With the permanent holdings, Buffett has indicated that Berkshire will not sell those holdings. The reason... more

Massive erosion of wealth in the economic meltdown has not stopped rich people in the US from making big donations, with legendary investor Warren Buffett topping the list of top 50 American philanthr read more ... more

Meet Mike Huckabee, the Speech Police Washington – Just in case there was any doubt about Mike Huckabee’s liberal policies, the Arkansas Governor told NPR on Wednesday that he would like to outlaw independent political speech in the public domain: I personally wish that all of this were outlawed. I think that every candidate ought to speak for himself, and that everything that involves the candidate’s name or another candidate’s name should be authorized and approved b... more

The Wrong Way to Go on Economic Stimulus Washington – With the prospect of a recession looming in the not-so-distant future, both President Bush and the Democrats have embraced economic stimulus packages that include timely, targeted, and temporary so-called solutions. The trial balloons that have been floated so far, unfortunately, are likely to do little to stimulate the economy. Consider the stated goals: Timely: This is a nice sentiment, but it’s not going to... more

Rep. Jeb Hensarling, as president of the Republican Study Committee, seems to be a lone voice of supply-side reason on Capitol Hill. He’s speaking the correct message regarding the idea of an economic stimulus plan. Below is his press release . Note his boldness AND his clear, pro-growth solution to reigniting the economy [emphasis added]. Bravo, Congressman! Bravo, RSC! “It is clear that hard working families in America are struggling to make ends meet and that the economy nee... more

THE DAILY NEWS Back to the ’70s? - Larry Kudlow, Money Politics We’re All Keynesians Now - Wall Street Journal Editorial It’s All About Risk-Taking, Not Rebates - Paul Hoffmeister, RCM Relief That Works - IBD Editorial No Stimulus Gimmicks, Please - Bill Thomas & Alex Brill, WSJ Responsible Stimulus Unlikely - Alan Bock, OC Register Huck Hoax: Why He Won’t Break Out - Rich Lowry, Real Clear Politics Dismal Science Sees Upbeat Future - Alex Tabarrok, Forbes.... more