Comments on: Waiting on Buffet?

By: Is the Bottom Near? | Simple Debt-Free Finance

Is the Bottom Near? | Simple Debt-Free Finance — Fri, 26 Sep 2008 16:15:39 +0000

[...] wrote a post last week called “Waiting on Buffet“. The general point of that post was that many experts have put forth the proposition that [...]

By: The Weekend Round-Up

The Weekend Round-Up — Sat, 20 Sep 2008 22:24:01 +0000

[...] Debt-Free Finance has called my sanity into question for wanting to invest in banks in his post Waiting on Buffett. He may be right, I may be crazy. But it just may be a lunatic you’re looking [...]

By: Joe

Joe — Thu, 18 Sep 2008 17:21:54 +0000

MGL,

Just to be explicit, I don’t really question your sanity… scruples, maybe.. I mean you are a lawyer after all..

Ok, cheap shot, I know. I couldn’t resist. But like I was saying, I think you had a good question but I know that some people will think going anywhere near a financial stock is investment suicide. It may insane today, but maybe a genius move tomorrow. At some point financials will rebound and they have a long way to go on the upside when they finally do, but determining when that upside climb begins is the trick.

By: MoneyGrubbingLawyer

MoneyGrubbingLawyer — Tue, 16 Sep 2008 13:44:02 +0000

I tend to think I’m insane like a fox, but I’m probably just a little biased.

I’m not fully confident that financials have hit rock bottom, but I think we’re close, especially in Canada. Lehman Brothers might actually be the “big fish” going under a signalling the bottom, although some said the same thing about Fanny Mae and Freddy Mac.

My take on bank stocks at this point is that a recovery is inevitable at some point, the prices are currently down, and the dividends are stable. Even if prices stay down for some time, the regular dividends will give as good a return as many other stocks in the current market. When the recovery comes, you’ll see capital gain as well.

And thanks for the mention, even if it did question my sanity!