There are many investors, myself included who look at what long term successful investors are doing. Some times strong correlations exist as in the early 1990's many value investors such as Warren Buffet, Tweedy and so many others forged into Wells Fargo. As one would expect at times there exist an extreme dichotomy.
In Sept of this year long term successful Joseph Lewis starting buying into Bear Stearns. In Sept he purchased 7% of BSC. One could easily say he had a strong conviction. Currently in Dec he even increased his exposure to 9.57% in his Aquarian Investments Ltd., Cambria Inc. and other entities. Mr. Lewis can be thought of as a mogul. He owns approx 170 companies as well as considered to be one of the best currency traders. After making his first fortune in the London restaurant trade, Lewis moved into foreign exchange and equities, dealing from a base in the Bahamas in the late 1970s. The Tavistock Group, his main investment vehicle, is valued at more than £1 billion on the strength of holdings in the energy, property, industrial and financial service sectors. He also owns 7,000 valuable acres in Orlando, Florida, and has extensive Russian oil investments. Mr. Lewis has a reported net worth of 2.5 Billion dollars and has made a substantial bet on BSC.
The other successful long time investor is David Einhorn and his Greenlight Capital Hedge Fund. Greenlight started in 1996 with 1 Million dollars and through David's successful value investing grew to a multi billion dollar fund with 20+ compounded rate of return. In the most recent 13F Greenlight disclosed they were short BSC. (http://www.sec.gov/Archives/edgar/data/1079114/000131586307000199/0001315863-07-000199.txt)
In investing there are always opinions and two sides to a trade. This is exactly what makes markets. I am sure both are very confident in their perspective opinions. Obviously one will be right...and possibly one could be terribly wrong. As Warren Buffett and Charlie Munger commented regarding Long Term Capital that one should not make bets and risk their future. Long Term Capital made large bets and blew up. Mr. Lewis has taken a very substantial contrarian bet which one can allude to as being too aggressive. In the short term he is experiencing a drawdown.
At this time many are asking is it time to buy into the banks and be a contrarian. Unfortunately there are too many unknown as well as many banks are leary of lending to each other. My bet is with David Einhorn and Greenlight. In investing one needs to define the risks and be very clear where the trade works and where it does not. It would be very nice if we could blindly invest like long term Gurus and have their successes. However successful long term investors know differently. Do You?
Andrew Abraham [email protected]
Http:/www.AbrahamBedick.com
Http://capitalinvestor1836.blogspot.com/
In Sept of this year long term successful Joseph Lewis starting buying into Bear Stearns. In Sept he purchased 7% of BSC. One could easily say he had a strong conviction. Currently in Dec he even increased his exposure to 9.57% in his Aquarian Investments Ltd., Cambria Inc. and other entities. Mr. Lewis can be thought of as a mogul. He owns approx 170 companies as well as considered to be one of the best currency traders. After making his first fortune in the London restaurant trade, Lewis moved into foreign exchange and equities, dealing from a base in the Bahamas in the late 1970s. The Tavistock Group, his main investment vehicle, is valued at more than £1 billion on the strength of holdings in the energy, property, industrial and financial service sectors. He also owns 7,000 valuable acres in Orlando, Florida, and has extensive Russian oil investments. Mr. Lewis has a reported net worth of 2.5 Billion dollars and has made a substantial bet on BSC.
The other successful long time investor is David Einhorn and his Greenlight Capital Hedge Fund. Greenlight started in 1996 with 1 Million dollars and through David's successful value investing grew to a multi billion dollar fund with 20+ compounded rate of return. In the most recent 13F Greenlight disclosed they were short BSC. (http://www.sec.gov/Archives/edgar/data/1079114/000131586307000199/0001315863-07-000199.txt)
In investing there are always opinions and two sides to a trade. This is exactly what makes markets. I am sure both are very confident in their perspective opinions. Obviously one will be right...and possibly one could be terribly wrong. As Warren Buffett and Charlie Munger commented regarding Long Term Capital that one should not make bets and risk their future. Long Term Capital made large bets and blew up. Mr. Lewis has taken a very substantial contrarian bet which one can allude to as being too aggressive. In the short term he is experiencing a drawdown.
At this time many are asking is it time to buy into the banks and be a contrarian. Unfortunately there are too many unknown as well as many banks are leary of lending to each other. My bet is with David Einhorn and Greenlight. In investing one needs to define the risks and be very clear where the trade works and where it does not. It would be very nice if we could blindly invest like long term Gurus and have their successes. However successful long term investors know differently. Do You?
Andrew Abraham [email protected]
Http:/www.AbrahamBedick.com
Http://capitalinvestor1836.blogspot.com/
