Quote:
Originally Posted by petekoch
[snip] year and a half and keeps upping his position. What I'd like to know is if it's a good long-term deal for me @$5, but I find financial companies tough to decipher. The only thing I have come up with is Pabrai's endorsement.
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Likewise, I don't really feel that I have the knowledge to decipher a banks accounts. Pabrai's endorsement is not enough to make it a purchase per se.
I am ok for taking a stake distressed business where one can figure out how bad things are and is able to work out scenarios and their probabilities of success (see USG) --- but with banking I am clueless.
And I am not alone. Looks like there are a lot of clueless people in the banking sector, having had no more of an idea than I had.
Unless one digs that sector (like Buffett etc Co.) I'd stay away for the time being. This is just too hairy for me. There are plenty of other fish in the pond.