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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (42818)	5/25/2011 10:04:21 AM
From: Madharry	Respond to of 78748

I dont know the guy is battling cancer, and like so many things the valuations of assets and future claims is in the eye of the beholder. Someone on another issue made the point that frequently loss reserves are based on historical experience which could be vastly different from the future- I kind of doubt that P&C companies have adequately reserved for 2011 one in a 100 or 500 year events, and it seems like we are having one in a 100year events annually now. Now when an entity is more than adequately capitalized like a berkshire hathaway one can be off with these reserve calculations, but when the leverage is high this could spell doom and or future bailouts for other entities and my confidence in regulatory authorities has been completely shaken after the events of the past 5 years. The only thing I am confident about is governments ability to print money.