Zenvestor

Lehman Brothers: Accomplishing What Bear Could Not?

With all due respect, I don't agree with evaluating the potential of a company simply based on what a handful of institutional investors may or may not do. After all, if one was to base one's investment decisions simply on what the rest of the crowd is doing, you would have invested heavily in subprime mortgages two years ago. You are assuming that institutional investors are somehow a measure of "prudent" investing. And as we all know, the last year has proven that even the venerable UBS made some astoundingly imprudent investments. Fundamental analysis of Bear Stearns is the only true measure of Lehman's health and that's what Einhorn is doing.