iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,429 Blog Posts

The Buffett Deal is Defensive

Buffett owns a shitload of insurance, Goldman Sachs and Well Fargo. You need to know that when analyzing the Berkshire investment in Banc of America. If BAC went into full crisis mode, Buffett would have bled out due to his exposure to the aforementioned industries above. So, in many respects, this is a defensive investment for old man Warren. I respect what Warren stands for and can only dream to attain the sort of success he has enjoyed; but I’m not buying BAC because of today’s news.

If anything, the BAC preferred shares look good and worth a buy, if you are into high yielding instruments.

On the plus side, a repeat of 2008 is OFF THE TABLE. I know that might seem like a bold statement; but it really isn’t in the big scheme of things. Banks aren’t supposed to fucking implode. You people have it ingrained in your heads that banks should fail every 3 years. Fucking lunacy. Instead, banks will continue to prod along the bottom, underperforming high growth companies. There is nothing enticing about banks here, with exception to select regionals like SBNY.

Ahead of Jackson Hole tomorrow, I will be sitting on my hands, 70% long, 30% cash. If we dip tomorrow, I will buy more on Monday. If we melt up tomorrow, I will lighten up and raise more cash. At the moment, I am down 0.10%, pretty much a non-event.

If you enjoy the content at iBankCoin, please follow us on Twitter

20 comments

  1. MOOBER

    I like PNFP too.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. xxxHuggieBearxxx

    but but but don’t you know all of the banks are insolvent??

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. Dubz

    Cool new theme

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  4. Jak

    Fly, sometimes i really like what you have to say, but to say banks are not going to implode is ludicrous. You know(or should know) the only reason the banks are actually solvent is because their books have been cooked. You are wackjob. The only ones being saved this time are the depositors. Bond/equity will be written down to fair value.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • xxxHuggieBearxxx

      they will bleed us all dry before they let the banks fail. one would think that would be clear enough for everyone to grasp at this point.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • Frog Playing a Colorful Accordion Song for Bernanke
        Frog Playing a Colorful Accordion Song for Bernanke

        True. And that will likely take 3 or 4 more years, so we, and Warren, are safe from it for now.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
    • The Fly

      Actually, you are a wackjob.

      Think about it.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  5. Dr. Diablo

    The Bernank’s speech must be before 2 pm mountain time or it will be after the market closes. I expect a repeat of last year’s speech.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  6. Din

    The Bearded Clam in Jackson Hole…

    http://www.youtube.com/watch?v=iLsDvGlIDh0

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  7. TraderCaddy

    Fly- If you need a generator, batteries, tuna, bottled water, etc. let me know. We don’t get Hurricanes here anymore.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  8. go2mars

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOfwpkHV2clM&pos=5

    Something for the gold-haters to remember:

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  9. Dr. Diablo

    Warren the Buffett is proof that an idiot can somehow become very rich becasuse he is truly an idiot …or has become senile.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  10. Hawaiifive0

    I don’t know if you want opinions on the new layout or not, but while like the layout, so far it’s just too black for me. Maybe I’ll start to like it in time. Not trying to be negative. Just wanted to provide feedback.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  11. Frog Playing a Colorful Accordion Song for Bernanke
    Frog Playing a Colorful Accordion Song for Bernanke

    Also, if you have trouble with the new site on IE (I did), then use Chrone. Works better.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  12. Snoop

    A bank or entire country in Europe will implode before this is over. You can’t get a large group of morons to agree on everything. At some point, someone will be thrown under the bus.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  13. futures

    If the bernank’s speech is during market hours expect another few hours of “perfect storm” volatility where the SP cash market has a small range of let’s say 1199-1050 🙂

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  14. Yogi and Boo Boo

    @Fly – Maybe if you ‘splain it to the plebes over and over again, they’ll get it in time for the next market cycle. As for me, I don’t have your patience, and would just take their coin on the next trade.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  15. ruggyup

    Defensive, the Buffet/BkAmer. deal? Maybe but, I see some other things. It does light up the fact that Moynihan is a deceitful whore executive type, the more money these Irish types sock away personally the less transparent they become-see or, read as, Joe Kennedy. It may be arguable to respect Buffet’s accomplishments but temper that with behind that jolly, ah shucks, I bid 3 spades, vanilla demeanor lies the heart of the jackal who preys on the wounded and dying for his own satisfaction and survival.

    • 0
    • 0
    • 0 Deem this to be "Fake News"