madasiwannabe

Value Investors, Remember Margin of Safety

I agree with JasonC too. Today's market is as rational and predictable as a school of sharks with blood in the water, and it doesn't help that media outlets are out there chumming.

The only value anyone cares about is what they can extract from a company and put in their pocket at the end of the day. Charts mean nothing and only add value to deep pocket players trying to catch smaller investors leaning. It's the thrill of the kill that spurrs the market; nothing more, nothing less. The victom or benificiary companies are merely bait fish chosen by the media for the sharks to feed on. It's not just financials either. I can't think of a single sector you can put your money in without worrying if it will be there tomorrow.

If your looking for safe, value based investing in today's markets, keep your money in your pocket for a little while longer. There's no safe place in this pool for investors with charts or floaties.

When Bill Met Freddie

Boy, if Freddie shoots up to $30, Bill Miller will be considered one of the smartest guys on Wallstreet. On the other hand, if the GSE's fail, the economy will follow so fast that no one will remember who Bill Miller is. With a Federal backstop and plenty of other big funds and banks to keep him company, the rewared from here seems to outway the risk. If I was in that deep and staring at $5 shares, I might just try to get a few million more to further improve my position. Stock is always worth exactly what you sell it for and the best time to buy it is when no one else will. I say hang on to the stocks, buy another case of Rolaides and hang on tight Bill. There's a lot more room up than down.