Warren Buffett and Common Sense in Business

In retail,your competition is always moving,said Berkshire Hathaway CEO and noted billionaire Warren Buffett,referring to JC Penney's current difficulties.
I do not care whether Berkshire Vice Chairman Charlie Munger's in the office or not.He's always got Berkshire on his mind.I only talk to him about once a week.
I feel very good about my three children.
Low interest rates could pose a problem for insurance companies down the road.When you roll over bonds,you're getting a lower rate.The profitability is going down because of that.They own a lot of bonds.
Of all my companies,I would keep GEICO because of sentimental reasons.It goes back early in my life.
Airlines have all the ingredients of a bad business.
People can buy a low cost index fund and participate in the future of America and they should forget about it for five years,and they should be fine.You can own index funds for a very low cost and get the same performance as people who charge you a whole lot more.
I think we live in the best country in the world and we will solve our problems.
Buffett represents American industry and American business,according to CNBC's Jim Cramer.The common sense in his annual letter is so much fun.
If Apple don't do anything with their cash,they are becoming the anti-Buffett.He'd rather buy a business than keep cash.He's a thoughtful man for many years.I like him.
Berkshire Hathaway(BRKb)

AIG Substantially Profitable Under Benmosche

AIG had a great operating quarter,said Robert Benmosche(pronounced Benmoshay),CEO of the insurance titan,with a 1.56 billion dollar profit.All of the operating units have been performing well.Thailand lost 368 million-a little above what we'd like to see,but Japan was the big problem,in the wake of payouts for the countries' 2011 natural disasters.
We see the U.S. economy as being pretty strong.Jobs and housing are doing better.We're pretty optimistic about 2012.
Our job is to build a great company.We're gonna focus on the owner who wants to hold the stock for a long time.We're working hard for our shareholders,clients and employees.
The government wants to get out of AIG as prudently and as quickly as they can.They feel they should be able to sell that stock at break even or a profit for the taxpayers.
People still need to save for their retirement.The annuities are selling reasonably well in this market.We provide the public with certain guarantees.We'll take care of that volatility.
Unfortunately,I have cancer,but I'm enjoying what I'm doing.There's no guarantee,but I'm gonna keep going until I can't.I'm feeling good.The doctors are working on some stuff,the tanned and fully bearded Robert Benmosche revealed.He agreed to lead the recovering insurance company in 2009.
Mr.Benmosche,67,had been CEO of Metropolitan Life.The married father of two,a New York native,has been treated with aggressive chemotherapy for an undisclosed type of cancer.
American International Group(AIG),Metropolitan Life(MET)

Who Sings On The Liberty Mutual Commercial

It sounds like Cat Stevens on the Liberty Mutual "Doing The Right Thing" commercial.It isn't.The song is called "Amen,Omen."It is by the American singer songwriter Ben Harper.At a full length live performance,it was about seven minutes long,and close to six minutes long in the studio version.
Another hidden gem was uncovered for us by advertising.
"Responsibility:What's your policy?" is the compelling slogan for the Liberty Mutual commercials.Congratulations to the Boston ad agency Hill Holliday and the company for this effective corporate communications effort.It has generated thousands of positive emails from viewers.
The commercials are part of the company's "The Responsibility Project."It was conceived in 2005 when the firm made a push to become a top five insurer,instead of a top ten.According to insurance company rating firm A.M. Best,they have achieved that goal,being the third largest property casualty insurer in the U.S. as of 2010.
"The Responsibilty Project" also incudes a website with short films on the responsibilty theme as well as discussion videos and tips on property and casualty topics,along with the company's philanthropic efforts.NBC Universal has partnered with Liberty Mutual on the project,which Liberty Mutual says reflected the company's strong existing corporate culture.
The commercials may be viewed on YouTube.Ben Harper's music is widely available on the web.

Insurance CEO Tackles Inflation

Edmund "Ted" Kelly,CEO of privately held insurer Liberty Mutual Group,sees high single digit inflation in the 2014-15 time frame.We're in hard assets such as oil and gas,mining and minerals to protect ourselves.
Cheap money is pumping up the financials and making credit too available,and we're concerned about it.
We very much like China,Vietnam,Thailand,Brazil.We're strong on the Iberian Penninsula-Spain and Portugal-as well as Turkey and Poland.What we have seen in China is a remarkable ability to manage the economy,Mr.Kelly noted.
Liberty Mutual does not intend to go public anytime soon,in light of commercial insurers cutting prices recently,which tends to devalue insurance company stock.

AIG At Its Core

Insurance titan AIG is going through a lot of restructuring.As they keep paying the government back for rescuing the company from the financial crisis,they have to keep accelerating the amortization,says CEO Robert Benmosche.
They'll be the largest property and casualty insurer,and one of the largest life and annuity firms.That's the core of the company.They're selling off a lot of smaller things.AIG can produce 6-8 billion dollars of profit once they complete the restructuring plan.
Now AIG is working on a liquidity plan.They want to have enough capital to withstand any future shock.They're gonna start showing that to the ratings agencies.
Right now there's a lot of capacity at AIG.They are well past their reputational issues.
Over the next couple of years,AIG won't be suffering from unrealistic prices.They think that they'll get all their issues behind them in Q4.You'll begin to see the company's earnings grow steadily over time,Mr.Benmosche believes.
AIG's global employees are returning the firm to its client-centered heritage.They are taking pride in restoring the company to a leadership position.
American International Group(AIG)

New York Life Still Hiring

New York Life has stood strong throughout the financial crisis,which is why it is still hiring today.Many successful individuals have already improved their prospects by joining this leading firm.Honored by Fortune magazine as one of the world's most admired companies,it has lead the U.S. in sales of life insurance and lifetime income annuities.
New York Life offers comprehensive professional training,the latest technological tools and substantial compensation opportunities.Please fill out the form at https://www.newyorklife.com/brhun to be contacted by a recruiter.

Old Firm,New Executive

Hartford Financial Services Group is 200 years old.Its new CEO is Liam McGee,who thinks that what the European Union and European Central Bank did to help Greece was thoroughly appropriate.Hartford's balance sheet has enough capital to withstand any reasonable stress scenario.They are seeing good top line momentum in both their consumer and commercial businesses.
It is fairly clear we are beginning to see growth,but it will be at a slow pace.Hartford has largely moved on from lower tranche investments.They're selling that lower tranche commercial real estate.Hartford's portfolio is now oriented to high grade commercial debt,Mr.McGee indicated.
As of the close of trading last Friday,Hartford was paying a dividend of 0.20 a share,for a yield of about 0.80%.The stock was up 0.91 last week and had a price to earnings ratio of 9,with a closing price of 26.21.
Hartford Financial Services Group(HIG)