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Thursday, August 25, 2011

Buffett said BAC deal is reminiscent of his youth? GEICO & American Express trades

http://www.cnbc.com/id/44207362

QUICK: JUST GOING ON REAL QUICKLY TO POINT OUT THAT THIS IS KIND OF LIKE SOME DEALS BUFFETT HAS DONE IN THE PAST SOME OF THE MAJOR DEALS HE'S IN HIS YOUTH. HE SAYS THIS IS LIKE GOING BACK TO HIS YOUTH WHERE NOT ONLY AMERICAN EXPRESS, WHERE HE GOT IN BACK IN THE 1960s, BUT THEN WITH GEICO BACK IN 1970. GEICO WAS IN TROUBLE, TOO. I BELIEVE BECAUSE OF SOME ACCOUNTING ISSUES. HE BOUGHT INTO THAT COMPANY, TOO AND BOUGHT A MAJOR STAKE AT THAT POINT, BUT IT'S THE IDEA OF BUYING INTO THE COMPANIES THAT LOOK LIKE THEY ARE IN TROUBLE, TAKING SOME MAJOR BETS AND BUYING BIG INTO THEM. THIS IS REMINISCENT OF SOME OF THE DEALS HE'S DONE IN THE PAST.
 If you are a Buffett nerd you know how profitable his old American Express and GEICO trades where.  I'm going to take a cold shower, and remind myself that Buffett also invested in Irish banks and lost his shirt and it's only my analysis that matters...not Buffett's.

I might be taking more than one cold shower. 

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