Despite a rally in March, the overall stock market was down sharply during the first quarter of 2009 with the S&P 500 posting a decline of 11.7% and the Dow Jones Industrial Average declining 13.3%. At their low points of ...

Protectionist sentiment is on the rise in the United States. Although my main focus on this site involves the financial markets and individual securities, at times like this it is difficult to ignore the massive structural changes that are taking ...

Although my main focus on this site involves the financial markets and individual securities, at times like this it is difficult to ignore the massive structural changes that are taking place in the economy due to political action in Washington ...

There has been much debate in recent days regarding whether the market for Credit Default Swaps (CDS) should be more tightly regulated. Let's take a look at the nature of credit default swaps and whether arguments for tighter regulation have ...

Earlier this month, Fitch Ratings downgraded Berkshire Hathaway's credit rating on unsecured debt from AAA to AA+. Earlier this week, Standard and Poor's lowered its outlook on Berkshire Hathaway from stable to negative. The result appears to be at least ...

Over the past month, I wrote a few posts regarding potential arbitrage opportunities available due to discrepancies between the relative valuations of Berkshire Hathaway's Class A and Class B shares. The arbitrage opportunity identified in these posts has now been ...

In a widely anticipated move, Standard & Poor's today revised its outlook on Berkshire Hathaway from stable to negative. Standard & Poor's reaffirmed Berkshire's AAA rating for now. This action follows the March 13 downgrade of Berkshire by Fitch Ratings ...

Anyone reading this who is a taxpayer in the United States is, in effect, a shareholder of AIG due to the Federal Government's infusion of $173.3 billion in bailouts over the past six months. These bailout funds have resulted in ...

Are classic cars investments or a form of consumption? While hobbies such as classic car collecting are fun, they should not usually be mistaken with intelligent investment ...

GEICO has announced plans to begin selling auto insurance in Massachussets following the implementation of reforms that eliminate price regulaton by the state and permit companies to set their own rates. With GEICO's entry into the Massachussets market, the company ...

At a time when the newspapers are full of stories about predatory lenders, irresponsible homeowners, and the terrible impact of foreclosures on the national economy, it is refreshing to read about a home builder that largely avoided the housing meltdown ...

The National Association of Insurance Commissioners voted to require insurance companies to disclose the impact of climate change on their businesses. This action taken on March 17 will compel insurance companies to fully disclose the impact of forecasted climate change ...

The steep market declines over the past year have left many state and local governments struggling with severely underfunded pension plans. The Wall Street Journal reported today that several states and municipalities are considering extreme measures to address pension shortfalls ...

Berkshire Hathaway and Swiss Re have finalized the terms of the funding arrangement initially announced on February 5, 2009. While the main elements of the deal have been known for some time, this is a good opportunity to revisit the ...

Benjamin Graham pioneered a technique that holds a great deal of promise in today's market. Graham's concept of identifying bargain issues, or Net-Current-Asset Value Stocks (NCAV), is as relevant today as when he wrote about it in The Intelligent Investor ...

Fitch Ratings has downgraded Berkshire Hathaway's issuer default rating to AA+ from AAA and downgraded Berkshire's senior unsecured debt rating to AA from AAA. Read this post for more details and an evaluation of whether the downgrade is warranted ...

Warren Buffett has a long standing reputation for not making stock recommendations, particularly in cases where Berkshire holds positions. I believe that this long standing policy has been in place primarily for two reasons, each of which have been very ...

Last month, I wrote about potential opportunities to profit from arbitrage from pricing discrepancies between Berkshire Hathaway Class A and Class B shares. While the arbitrage opportunity was reduced significantly by February 26, it has re-emerged again more recently. Forced ...

There is a difference between being smart with money and being cheap for poorly thought out reasons. False economies are a mirage that we should try hard to avoid ...

In recent weeks, investors have witnessed a dramatic acceleration of greatest bear market meltdown since the Great Depression. The Standard & Poor's 500 closed at 683.38 today (March 6, 2009), more than 56% lower than the record closing high of ...