Not touching bank shares with a barge pole. (p.s. I hear Intesa Sanpaolo shares are quite cheap now too )

You have been listening to Terry Smith too

The Italian banks are also on sale now :-)

What goes down, it will usually go up ... unless it's meant to be completely Pleite.

Remember Swiss Air? Got grounded for good!

I've been anti-bank shares since before the 2008 crisis. I actually wanted to short NRK but back then I was conflicted out from trading it.

Very good buy but not for the long run. I would sell it as soon as I can get a decent profit on it.

Tell that to Warren who have invested in Wells Fargo and other financial companies.

Sadly I'm not in the position to buy and entire bank nor do I have several existing insurance businesses and good political connections. Otherwise, what Buffet is able to do might also be relevant for me

Well he did loose a lot of money with his stake in an Irish Bank in 2008, Tesco's was another clanger, so just because Warren invested at a fraction of todays price does not mean you should invest today. If he sells taxes need to be paid which is often ignored.

He got a huge gain with Wells Fargo that more than compensated for the losses with the other banks.

Banks are good investments but not to hold for the long term. They grow and go bust with the economic cycles. Thus now it's a perfect time to buy them. Of course, no one should have a single bet, unless the market price is way below book value with no intrinsic reason.

Warren only invests if he is happy to invest 100% of his net worth in a company. He does not believe in diversification for safety. Diversification he believes is fir people who don't understand what they are doing.

perfect time if you want to lose all your money, that is.

I would think most banks have an intrinsic value of 0 or very close.


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Do you take all WB declarations literally?

First, do you know anyone in the entire world more diversified than him?

Second, he likes to criticize and be sarcastic to, justifiably, investment managers in his letters and so "diversification" eventually comes in to the topic.

Third, if it was the case that he doesn't believe in diversification, you can't compare an individual investor with someone who takes board seats in a company. An individual have only financial data and past market price to rely on, whereas WB will put his team and partners to run and change the course of the business. He is in control of his businesses, an individual investor not. So diversification has a complete different value and meaning to WB and to myself.

In other news, Fundsmith had a storming few days and is up from 6 June (when I reset my measurements) in USD terms. The MCR fund is also at an all time high.

Anyone who holds 2 average metal funds will have greater diversification then BH, which is essentially an Insurance company with other interests.

ARM to be acquired by SoftBank!

http://www.ft.com/cms/s/0/235b1af4-4...#axzz4EkKIMsx9

Rumour has it that Apple is planning a takeover of the F1 broadcasting rights. All consistent with Apple Car and their TV streaming plans. can't be true can it?

Another Eddie Cue gamble...