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Bill Miller of Legg Mason, famous Lynch-style value buyer, is in trouble for having followed for too long W. Buffett's strategy, "Be fearful when others are greedy and greedy when others are fearful."
Mr. Miller was in his element a year ago when troubles in the housing market began infecting financial markets. Working from his well-worn playbook, he snapped up American International Group Inc., Wachovia Corp., Bear Stearns Cos. and Freddie Mac. As the shares continued to fall, he argued that investors were overreacting. He kept buying.
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When asked how he would know he made a mistake in buying a falling stock, Mr. Miller once retorted: "When we can no longer get a quote." In other words, the only price at which he was unwilling to buy more was zero.
One should understand Buffet is looking after his behind as well as many other wall street tycoons... so if you think they should be "advisers" to the president, guess what the plans will entail? Oh, the taxpayers may get some sort of relief, but so will Buffet and the other tycoons and if it all goes to crap, the taxpayers will be stuck with the bill... never, EVER allow billionaires (or even millionaires) to be your economic advisers, unfortunately Obama doesn't understand this...
I think it does still apply ...... but you have to be smart about it.
There is a lot of value sitting out in the market. Companies where the book value per share or even cash per share is close to or greater than the share value. This is especially true in financial service. Obviously you have to look closely at the company to see if you think it will survive. But, if you think it will, then there is money to be made for the bold.
It's just a shame about Bill Miller's fund(s), and that it's become prudent to disengage from the trusting Long buyer mentality for the time being. LMVTX was a legend when I first started trading. I agree, there's plenty of money to be made still if you daytrade and enjoy shorting. Im afraid to go too long on anything these days let alone buy an option in either direction.
Actually, Jimmy's strategy might be making a comeback. All you really need to be happy is a big, juicy cheeseburger, a tall margarita, some comfy shorts, good tunes and some friends to sing along. If we'd been Millerheads, we probably would've lost the boat... along with our shirts.
Berkshire's looking more attractive these days. A little lower and it might be tempting.
Trying to sum Buffett's investing strategy up by using one out-of-context quote? Seriously? Is that as deep as things go here?
Perhaps the real estate forum is more to your intellectual requirements? You know, the one where serious someday-buyers pontificate about deep and meaningful issues, like whether they should come in at 25% or 30% or even 40% below asking, because the market might possibly drop some more in some town somewhere someday and sellers are sooooooo mean and unfair not wanting to lower their homes to the Walmart price.
Perhaps the real estate forum is more to your intellectual requirements? You know, the one where serious someday-buyers pontificate about deep and meaningful issues, like whether they should come in at 25% or 30% or even 40% below asking, because the market might possibly drop some more in some town somewhere someday and sellers are sooooooo mean and unfair not wanting to lower their homes to the Walmart price.
What does this have to do with the subject at hand?
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