03-02-2009, 05:31 PM
Griz, I would avoid companies like this that have basically failed. They're simply being propped up right now so that that don't take down all their counterparties with them. The 30 billion isn't really going to AIG so much as it's going to companies that dealt with AIG.
I would focus on finding companies that you know will be around in 10 years. Find companies that have a long term competitive advantage. There is no need to take a risk right now on AIG. There are plenty of great companies selling very cheaply right now. The key imo, is to average into these companies over the next few years. Sure, the market could go lower, maybe even 90% from the peak, but if you start averaging in you can protect yourself from that and be assured of long term rewards.
I would focus on finding companies that you know will be around in 10 years. Find companies that have a long term competitive advantage. There is no need to take a risk right now on AIG. There are plenty of great companies selling very cheaply right now. The key imo, is to average into these companies over the next few years. Sure, the market could go lower, maybe even 90% from the peak, but if you start averaging in you can protect yourself from that and be assured of long term rewards.
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison