Shiv Kapoor

Why Is Everybody Selling as Buffett Is Loading Up?

That Buffet has entered the market means that he sees this as a time of extream fear and thus a time to buy. He of course has bargaining power to get the better deals and you can access those through investing in BRK. My view is that this is the one quasi financial services company which must make up a significant part of any long term investors allocation to the financial services sector.

That BRK has invested in GS & GE is buy no means an all clear to buy those entities. He has driven a hard bargain which individual investors are not eligible for. An equivalent deal might emerge if share price of GE/GS falls 20% below the options price. In looking at GS/GE as investment opportunities you need to consider liquidity & solvency risks (which in my view are low particularly because of the BRK investment); then you have to look at valuation (could get better - and do not presently cover the risk specially since I expect dividend cuts/elimination).

Does GS Recapitalization Indicate It's Time to Invest?

I believe that it is a good time to invest in GS. But now that Berkshire is in, it is not the best time. Warren Buffet is a visionary man and an investor for life. I have noticed, he buys when times are tough and valuations are good, which is what most massive investors must do too. For smaller investors looking to accumulate positions, this is rarely the bet time. Its a great lifetime buy, its a great long term buy but it might not be so good for a short term positional trade over a short time horizon.