Best investment adviser Richard Losch's blog

The Bottom Line

All the major events of the last year are now playing into Berkshire Hathaway's strengths: premiums written by Berkshire Hathaway's insurance subsidiaries should increase rapidly in 2002. Barring a major catastrophe, profits should follow in 2003.

2001 Investment year results

A summary of the composite results for Losch Investment Management Company for the year 2001. The Value of a investment manager is measured by relative performance.

Don’t Fight the FED

It has been eleven months now, since the Federal Reserve Board started to pull back on the stick, but the economy still has not been able to get off the ground. Every recession since the end of World War II has ended as soon as the FED stated to ease. Is it going to be different this time?

Buy and Hold? - It all Depends

It all Depends Bull markets are great for investors that like to buy and hold but bull markets do not last forever.

Ben Laden and Berkshire Hathaway

What happens to the intrinsic value of an insurance company when it has to pay 2.2 billion in claims?

The Dinosaurs Dance

This article talks more about moats. Deswell Industries is a company incorporated in the British Virgin Islands with operating subsidiaries headquartered in Hong Kong and all its production facilities located in mainland China.

Costco's Moat

In other words Costco can show the same profit on 10.4% markup as Dillard's can on a mark up of 32.3%. For a watch that manufactures sells for $100. Dillard's would have to sell it for $132.30 to make the same profit that Costco would make by selling the same piece for $110.40 (this percentage is actually based on a markdown not a markup so the real prices would be higher, but you get the idea.) Wal-Mart is bringing 1.5% more down to the bottom line so they would price the watch at $124.5 ($123 + $1.50). Low margins and fast turn over can help to create a respectable moat for a retail powerhouse.

Bubble Watching

Will the FED be able to avoid Bubble Number two? As far as the recovery is concerned fast is bad slow is good.

Sit on your Ass investing

Is this the time for buy and hold forever? Or should we be studying what worked in the sixties and seventies. In a roller-coaster market maybe you want to think about getting off, and getting on.

Berkshire Hathaway Annual Meeting 2001 Highlights

The last week in April 2001 is the time to be in Omaha. Highlights of the Berkshire Hathaway annual meeting.


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