Tuesday, July 21, 2009

What about the banks?

Isn't that what we heard? Why aren't the banks rallying?

Why don't they ask that question tomorrow? They won't need to then. Because Wells Fargo reports before the bell!

But the play on Wells Fargo is Berkshire Hathaway, Well's largest shareholder.

Look at the big Berkshire, the A's, sitting at 91,750.

Then look at the little Berkshire, the B's, sitting at 2975. The spread should be 30 to 1, but the B's are at a 2.8% discount.

It makes me think that the Sept 3,000 call on the B's at $100 are a bargain!

And those prices make AAPL seem cheap!

In other Berkshire news, Ajit Jain, head of Berkshire's reinsurance group, paid $8.1 million to buy convicted swindler, Marc Drier's NY condo.

Berkshire has been touting it's reinsurance business. Anyone think Ajit would know how things are doing?

Or maybe he just wanted this pad!


X said...

So AAPL - 1.6%, MSFT - 2.2%, XOM - 4.2% of SPX. AAPL going up. MSFT will be solid. Anyone want to bet what XOM will be like? MSFT reports Thu and XOM 30th. And the bears think we are rolling over? Into the end of the month?

Palmoni said...

That will be real tough for that to happen!!

Palmoni said...

X--I see Romeo never answered your challenge.

I suppose that coffee he was drinking is really get sprayed now!

X said...

I would love to hear Romeo's views from the dark side. I was one myself, all of 08 and early 09. The longer term "US is screwed" thesis is no longer an investing strategy by itself. This market is far more complex than that. Into the 2H GDP expansion i am constructive; after that, remains to be seen.

Palmoni said...

There are much more variables in the market than ever before-

I know I get pretty animated when things go my way, but the market is difficult, because what's right to trade, is disconnected from the news when Mr. Market doesn't believe that the news is relevant.

So they can pound the facts of today, which the market ignores, which are different than the facts of tomorrow.

But all kidding aside, being bearish must be terrible stressful on someone right now.

Cuz I get worn out and I'm a bull!