The big news when Berkshire Hathaway
Time to buy
The good news is that Buffett's baby is now trading within a gnat's eyelash of book value. That's way below the historic average, and it's amazing for a franchise like Berkshire Hathaway -- especially given that $40 billion or so is in risk-free T-bills.
But about those "risk-free" T-bills … Buffett wasn't too happy about their downgrade. He said that if anything, it raises doubts as to the validity of McGraw Hill's
Transatlantic Holdings deal
The other big Berkshire news over the weekend was a $3.25 billion bid for Transatlantic Holdings
If Berkshire does succeed in acquiring Transatlantic, I think it will be a win for the company. The $3.25 billion will certainly earn a higher return in Transatlantic than it would in T-bills, and I trust Ajit Jain's insurance acumen. If he thinks it's a good deal, then it probably is.