Prudent Speculations

Lehman Brothers: Accomplishing What Bear Could Not?

Zenvestor, you are right buying a stock based on what a handful of institutional investors do is not smart investing. Perhaps my article wasn't clear enough. I in no way would advise anyone to invest in Lehman Brothers given the current situation. It is important to note though that others would and the fact that Lehman can convince them to do so is a good sign for the market in general. Their success in raising capital should stand in stark contrast to Bear Stearns which failed miserably in its own efforts to raise capital. In my opinion, there is a clear difference between the two as a result. That is why I believe that you can't throw Bear Stearns and Lehman Brothers into the same boat.