roger maxims

Cramer's Now a Market Timer?

Jason, "buy and hold" does not cover the truth of "bust". A lesson which many value investors have learned recently with Bear Stearns, Lehman Brothers and many soon to be:

GM (see you in Chapter 11),
Yahoo! (say goodbye to your $1 salary Yang),
Dell (laptops are now cheaper than mobiles, Michael),
Wells Fargo (overdue mortgages / credit cards make you an unprofitable, CCC-grade bank like the japanese gov-funded zombies), and
[enter a value stock that Buffett will buy 10% preferred in].

Honestly, (1) how can GS or GE pay Buffett 10% a year starting 2009 or (2) how they can redeem the preferred in 2011 (earliest possible) except diluting the common by issuing double the preferred quantity at half the price etc. Banks would not want to lend to them after even peeking at their balance sheets.