Tuesday, December 25, 2007

Are Financials a Good Buy Yet?

I think this WSJ article answers that question.

Warren Buffett agreed to pay $4.5 billion to buy the majority of an industrial conglomerate from Chicago's Pritzker family, choosing to invest in products like plumbing pipes and railroad tank cars as Asian investors pour billions into U.S. financial institutions.
Who is the smart money?
With more than $45 billion in cash on its balance sheet and a triple-A credit rating, Berkshire could easily buy a stake in a big bank, brokerage or other hard-hit financial firm. But so far, Asian and Middle Eastern investors have been at the forefront of financial deals.
The Marmon investment doesn't mean Mr. Buffett has written off the U.S. financial industry. As he did with high-yield telecom bonds several years ago, Mr. Buffett typically waits until prices fall to rock-bottom levels and until few other buyers are on the hunt.


Anonymous said...

Credit Bubble,
Just a follow up on REOs,
Could you comment on the companies that are still holding out there has lots of slope ahead to slide in commercial real estate..


CP said...

I am short JOE, BKUNA, DSL, SPF, MBI, MTG, and CORS.