GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Financial stocks are really cheap right now.

ADL Colin · 06-03-2008, 08:59 AM

Well, they are cheapER.The question is what assets do any such financial companies hold and what is the potential risk to them? For many companies it is just not very clear at all (read SEC reports). And also, in many cases these companies have diluted the value of their shares by selling more shares or bonds.

In the 1990 or 1991 Berkshire Hathaway report (can't remember) there is a simple analysis of WFC which shows some assumptions one might make to consider the risk a bank faces from defaults on its mortgages.

Buffett still holds lots of AXP and WFC and made some positive comments at the annual meeting.

06-03-2008, 08:59 AM
ADL Colin Too lazy to set a custom title Join Date: Feb 2001 Location: Tube Titans, USA Posts: 11,929	Well, they are cheapER.The question is what assets do any such financial companies hold and what is the potential risk to them? For many companies it is just not very clear at all (read SEC reports). And also, in many cases these companies have diluted the value of their shares by selling more shares or bonds. In the 1990 or 1991 Berkshire Hathaway report (can't remember) there is a simple analysis of WFC which shows some assumptions one might make to consider the risk a bank faces from defaults on its mortgages. Buffett still holds lots of AXP and WFC and made some positive comments at the annual meeting. __________________ Adult Date Link - $50 PPS starting NOW! -- good and JUICY! skype = "adultdatelink"