At the current pace in China, they could build 1 billion housing units in roughly 16 years. I don’t know how many housing units there are already in China but the math doesn’t look real good. If one knew some facts about China then they would know that China’s population is around 1.5 billion people. 11 billion on plant and equipment during 2013, roughly twice our depreciation charge. Over the stock market cycle between yearends 2007 and 2013, we overperformed the S&P. Now let’s look at the advantages of ELSS investments over other tax saving products. In fact, we have almost forgotten the advantages of focused learning. Their contributions are just beginning: Both men have Berkshire blood in their veins. Take from that what you want but to me the implications are clear. It should now take you less than 5 minutes to buy the chosen menu, assuming you have already got a brokerage account. But you have to go to your work and also drop your kids to school. I have always said that big money thinks and acts differently — that’s how they become “big money.” I have a friend who is in this category.

Buyers who previously purchased a house from you and would like to move to another may call for your help. Now the lingering question in my mind is what is a loan like this worth, specifically one that has an indefinite term and a zero interest rate (assuming a long term combined ratio of 100%)? Second, the loan has a negative interest rate. C/d. “PV” is the present value, “C” is the annual investment return, and “d” is the discount rate. There are websites, blogs, analysts, TV programs, cell groups following Buffett’s every investment moves and hence whenever Berkshire makes a move, a lot of people will simply charge and buy with the Sage of Omaha. You would basically be betting that none of these factors will change. Condominiums are popular and will remain so and grow in popularity in the future. Do what you want with that but the implications are clear.

Make your own assumptions but Buffett makes it clear that the true value of this liability is dramatically less than the accounting liability. 40,000 is not sufficient to purchase a revenue property free and clear. 18 billion to purchase all of NV Energy and a major interest in H. J. Heinz. 77 billion dollars for the float. They can sometimes cost hundreds of dollars every time you buy a band! There are huge potential rewards and the endeavor you put forth can give way to great financial returns of investment. By looking for and recruiting specialists in the art of outsourcing and development for advice, your business is more likely to succeed because of the diverse array of talents put into practice. I don’t wonder any more. This method involves a little more risk than other methods. Developing trust and encouraging honest dialogue between people at all levels in the organization so that the company as a whole can react quicker and more effectively to challenges and competitors. This is how you can establish wealth off not much starting capital! If waiting for stocks to fall is not your option you can always try to find that diamond in the ruff that will be bouncing back up in price.

U.S. stocks had a major rally on Columbus Day based on the French and German leaders’ mystery plan to recapitalize EU banks and on raised forecasts for U.S. A way for banks to make money is too have savings accounts. They continually make good long term investments, which ensure good long term results. After all, you could always own an index fund and be assured of S&P results. Either BRK is cheap, the S&P 500 is overvalued, or some combination of the two. The market is currently willing to value the latest hot tech stock at absurd levels while BRK underperforms the broader market. This is interesting because BRK is selling at 131% of book value. In 2013 BRK was paid 3.9% to hold this loan. 77 billion revolving fund (or loan). If our revolving float is both costless and long-enduring, which I believe it will be, the true value of this liability is dramatically less than the accounting liability. So what is the true value the float? Purchases at that level benefit continuing shareholders because per-share intrinsic value exceeds that percentage of book value by a meaningful amount. As I’ve long told you, Berkshire’s intrinsic value far exceeds its book value.

When Berkshire’s book value is calculated, the full amount of our float is deducted as a liability, just as if we had to pay it out tomorrow and could not replenish it. Berkshire’s extensive insurance operation again operated at an underwriting profit in 2013 – that makes 11 years in a row – and increased its float. First you never have to pay it back, so long as BRK’s insurance companies are still operating. First let’s talk about learning to ride. Like most everybody, I thought it was a bizarre scheme when I first became aware of it. I like to think of it as a loan but a loan that has a number of unique features. The term ‘financing’ in relation to buying a car connotes either rendering loan to buy the car or lease the car to you. Even though this has discouraged many investors, it is essential for all investors to understand a stock’s volatility to get through the ups and downs in the market on a long term basis.