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
I like PNFP too.
but but but don’t you know all of the banks are insolvent??
Cool new theme
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.
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.
True. And that will likely take 3 or 4 more years, so we, and Warren, are safe from it for now.
Actually, you are a wackjob.
Think about it.
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.
The Bearded Clam in Jackson Hole…
http://www.youtube.com/watch?v=iLsDvGlIDh0
Love that one. The test taking scene is classic as well.
Fly- If you need a generator, batteries, tuna, bottled water, etc. let me know. We don’t get Hurricanes here anymore.
You must be calling in from Arizona.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOfwpkHV2clM&pos=5
Something for the gold-haters to remember:
Warren the Buffett is proof that an idiot can somehow become very rich becasuse he is truly an idiot …or has become senile.
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.
Also, if you have trouble with the new site on IE (I did), then use Chrone. Works better.
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.
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 🙂
@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.
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.