World Turned upside down

[Bubblesitter]

In the year since I orginally posted this, I see articles daily in the Mainstream media asking something along the lines “Are we entering a 2nd Great Depression?”

Are there some good stock bargains out there? Which companies are best positioned to weather and even thrive in major down turn, or a depression. An interesting article in Wall street Journal.

http://online.wsj.com/article/SB123456259622485781.html

Although I’m very heavy on gold (via ETFs) and nearly all cash in FDIC insured institutions, I’m currently scoping out equities in companies best positioned to weather this.

Bubblesitter

[Allan from Fallbrook]

Bubblesitter: I think there are going to be some excellent opportunities for the sharp investor out there. The problem you have is that any serious effort at due diligence is going to be hampered by what you don’t see, meaning those potentially toxic assets and liabilities that are “off book”.

The WSJ article referenced the fact that Ben Graham lost nearly 60% during the period 1930 – 1933. I’m a big fan of Graham’s, especially Graham’s Theorem for company valuation, and so is Warren Buffett. Buffett built Berkshire-Hathaway up through well placed bets on undervalued or misvalued companies.

I think those same opportunities will exist during this downturn as well. You’ll have to pay very close attention to not only the books, but the accompanying notes to the books, especially in those companies involved with any off book transactions. The other question I would ask is: Corporate bonds or corporate stocks? Is yours to be a buy and hold strategy, or are you looking for one of those type situations where a company is incorrectly valued and represents a steal on the stock side of the equation?

[Allan from Fallbrook]

Bubblesitter: I think there are going to be some excellent opportunities for the sharp investor out there. The problem you have is that any serious effort at due diligence is going to be hampered by what you don’t see, meaning those potentially toxic assets and liabilities that are “off book”.

The WSJ article referenced the fact that Ben Graham lost nearly 60% during the period 1930 – 1933. I’m a big fan of Graham’s, especially Graham’s Theorem for company valuation, and so is Warren Buffett. Buffett built Berkshire-Hathaway up through well placed bets on undervalued or misvalued companies.

I think those same opportunities will exist during this downturn as well. You’ll have to pay very close attention to not only the books, but the accompanying notes to the books, especially in those companies involved with any off book transactions. The other question I would ask is: Corporate bonds or corporate stocks? Is yours to be a buy and hold strategy, or are you looking for one of those type situations where a company is incorrectly valued and represents a steal on the stock side of the equation?

[Allan from Fallbrook]

Bubblesitter: I think there are going to be some excellent opportunities for the sharp investor out there. The problem you have is that any serious effort at due diligence is going to be hampered by what you don’t see, meaning those potentially toxic assets and liabilities that are “off book”.

The WSJ article referenced the fact that Ben Graham lost nearly 60% during the period 1930 – 1933. I’m a big fan of Graham’s, especially Graham’s Theorem for company valuation, and so is Warren Buffett. Buffett built Berkshire-Hathaway up through well placed bets on undervalued or misvalued companies.

I think those same opportunities will exist during this downturn as well. You’ll have to pay very close attention to not only the books, but the accompanying notes to the books, especially in those companies involved with any off book transactions. The other question I would ask is: Corporate bonds or corporate stocks? Is yours to be a buy and hold strategy, or are you looking for one of those type situations where a company is incorrectly valued and represents a steal on the stock side of the equation?

[Allan from Fallbrook]

Bubblesitter: I think there are going to be some excellent opportunities for the sharp investor out there. The problem you have is that any serious effort at due diligence is going to be hampered by what you don’t see, meaning those potentially toxic assets and liabilities that are “off book”.

The WSJ article referenced the fact that Ben Graham lost nearly 60% during the period 1930 – 1933. I’m a big fan of Graham’s, especially Graham’s Theorem for company valuation, and so is Warren Buffett. Buffett built Berkshire-Hathaway up through well placed bets on undervalued or misvalued companies.

I think those same opportunities will exist during this downturn as well. You’ll have to pay very close attention to not only the books, but the accompanying notes to the books, especially in those companies involved with any off book transactions. The other question I would ask is: Corporate bonds or corporate stocks? Is yours to be a buy and hold strategy, or are you looking for one of those type situations where a company is incorrectly valued and represents a steal on the stock side of the equation?

[Allan from Fallbrook]

Bubblesitter: I think there are going to be some excellent opportunities for the sharp investor out there. The problem you have is that any serious effort at due diligence is going to be hampered by what you don’t see, meaning those potentially toxic assets and liabilities that are “off book”.

The WSJ article referenced the fact that Ben Graham lost nearly 60% during the period 1930 – 1933. I’m a big fan of Graham’s, especially Graham’s Theorem for company valuation, and so is Warren Buffett. Buffett built Berkshire-Hathaway up through well placed bets on undervalued or misvalued companies.

I think those same opportunities will exist during this downturn as well. You’ll have to pay very close attention to not only the books, but the accompanying notes to the books, especially in those companies involved with any off book transactions. The other question I would ask is: Corporate bonds or corporate stocks? Is yours to be a buy and hold strategy, or are you looking for one of those type situations where a company is incorrectly valued and represents a steal on the stock side of the equation?

[patb]

[quote=patb]those of us with cash would be fine[/quote]

exactly.

Those of us with cash would have done great.

and let the system start crashing, force them all to file
bankruptcy, and push the motherfuckers off a cliff.

if you need the processes, let FDIC take them over

[patb]

[quote=patb]those of us with cash would be fine[/quote]

exactly.

Those of us with cash would have done great.

and let the system start crashing, force them all to file
bankruptcy, and push the motherfuckers off a cliff.

if you need the processes, let FDIC take them over

[patb]

[quote=patb]those of us with cash would be fine[/quote]

exactly.

Those of us with cash would have done great.

and let the system start crashing, force them all to file
bankruptcy, and push the motherfuckers off a cliff.

if you need the processes, let FDIC take them over

[patb]

[quote=patb]those of us with cash would be fine[/quote]

exactly.

Those of us with cash would have done great.

and let the system start crashing, force them all to file
bankruptcy, and push the motherfuckers off a cliff.

if you need the processes, let FDIC take them over

[patb]

[quote=patb]those of us with cash would be fine[/quote]

exactly.

Those of us with cash would have done great.

and let the system start crashing, force them all to file
bankruptcy, and push the motherfuckers off a cliff.

if you need the processes, let FDIC take them over

[barnaby33]

I’ll stick by what I said

It ain’t contained, it ain’t subprime and it ain’t over. Not by a long shot.

Bubblesitter, unless you are prepared to day trade there are NO GOOD investments right now. I say that because everyones books are so cooked you can’t possibly evaluate one potential good company from the turds stinking up the joint. The whole point of staying out of the markets is to wait until the govt stops trying to pick the winners and make the losers into winners at your expense. Once that happens, then you’ll be in an enviable position to buy great companies at steep discounts. We are nowhere near that point.

SRS, you’ve been a big disappointment to me these last 2 months, don’t fail me now!

[barnaby33]

I’ll stick by what I said

It ain’t contained, it ain’t subprime and it ain’t over. Not by a long shot.

Bubblesitter, unless you are prepared to day trade there are NO GOOD investments right now. I say that because everyones books are so cooked you can’t possibly evaluate one potential good company from the turds stinking up the joint. The whole point of staying out of the markets is to wait until the govt stops trying to pick the winners and make the losers into winners at your expense. Once that happens, then you’ll be in an enviable position to buy great companies at steep discounts. We are nowhere near that point.

SRS, you’ve been a big disappointment to me these last 2 months, don’t fail me now!

[barnaby33]

I’ll stick by what I said

It ain’t contained, it ain’t subprime and it ain’t over. Not by a long shot.

Bubblesitter, unless you are prepared to day trade there are NO GOOD investments right now. I say that because everyones books are so cooked you can’t possibly evaluate one potential good company from the turds stinking up the joint. The whole point of staying out of the markets is to wait until the govt stops trying to pick the winners and make the losers into winners at your expense. Once that happens, then you’ll be in an enviable position to buy great companies at steep discounts. We are nowhere near that point.

SRS, you’ve been a big disappointment to me these last 2 months, don’t fail me now!

[barnaby33]

I’ll stick by what I said

It ain’t contained, it ain’t subprime and it ain’t over. Not by a long shot.

Bubblesitter, unless you are prepared to day trade there are NO GOOD investments right now. I say that because everyones books are so cooked you can’t possibly evaluate one potential good company from the turds stinking up the joint. The whole point of staying out of the markets is to wait until the govt stops trying to pick the winners and make the losers into winners at your expense. Once that happens, then you’ll be in an enviable position to buy great companies at steep discounts. We are nowhere near that point.

SRS, you’ve been a big disappointment to me these last 2 months, don’t fail me now!

[Author]

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