Is Warren Buffet wrong and seen as slipping? Well I could never read Snowball – i thought it was too boring. But now I have renewed respect for the author, so may read it
However I may not agree with Alice on the Goldman Sachs case. There is too much heart burn all over the world, most journalists do not understand reinsurance. Frankly, WB is saying ‘If I need insurance there are only a few things I look for –
is there something in my portfolio which needs insurance?
is there somebody willing to write the policy, the way I want it?
is the price at which I am buying WORTHWHILe for me to buy it?
does the writer have the ability to pay if the event happens?
WHO is at the other end of the transaction SHOULD not matter. His view is in the price, and as long as he cannot INFLUENCE the event, it should not bother me. Completely correct. FRankly nobody seems tobe saying that Paulson could influence the CDO crisis,he was only predicting it. Any way Alice will surely get a lot of publicity…so have fun Alice!
Post Footer automatically generated by Add Post Footer Plugin for wordpress.