Geoff Gannon June 7, 2006

(More) Recent Highlights from Fat Pitch News

Here are some of my personal favorites over at Fat Pitch News (to read the complete story, click the blue URL just below the green banner):

When Buffett Gambles, He Gambles Big: Warren Buffett’s Berkshire Hathaway is becoming “the last resort” for the largest companies seeking hurricane insurance. Berkshire is using its financial strength to take on more risk, just as many other insurers are reducing their exposure to single events. Buffett has always said Berkshire would risk large losses on a single event and the “lumpy” returns they produce, if the price was right. Apparently, the 2006 prices are right for Buffett.

Homebuilders Ready For Contrarians?: Bill of Absolutely No DooDahs looks at homebuilders, a group that currently trades at very low price-to-earnings ratios even after one adjusts for the expected near-term earnings decline.

I Value My Homeys: Bill of Absolutely No DooDahs discusses discount rates, inflation, and how to value equities. He then attempts to use what was discussed to value the homebuilders covered in his previous post. An excellent post – as is the first post (above) that discussed homebuilders.

Bank Stock Moats: George of Fat Pitch Financials looks at competitive advantages in banking. He refers to my post: “On Banks” and an earlier Morningstar article. If you enjoyed my series of posts on banks, you’ll enjoy reading George’s take on the subject.

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