Thursday, August 25, 2011

Buffet's dialog with Brian Moynihan last night...

Had to spend a few minutes trying to entertain my readers, so I wrote those lines below...

WB: "Brian... are these rumors true? How is your bank doing?"
BM: "We're fine, Warren. Chill out. So, what's up?"
WB: "I was thinking about an investment in BAC. What do you think of a partnership?"
WB: "But, but, Brian..."
BM: "Warren... let's just make it so it won't look we're in huge trouble."
WB: "You're not in trouble, are you? Obama said.. "
BM: "10y Preferred, dividend of 6%, ATM spot of 7.15 strike. DONE!"
WB: "But what will Munger think of it..."
BM: "Bernanke will cover you. Don't worry."
WB: "Okay, okay. I saw this movie before..." (walks away quietly, calls bridge partner Jimmy Cayne)

*Disclaimer: charts and data are presented as I receive/see them. Sources are usually not checked for validation and my own calculations are of 'back of the envelope'-type. I am aware that some math that I do myself might be wrong and/or misleading to some extent. In financial markets the rate of change of economic data is often more important than the actual level and the perception of 'what is priced in' is more important than 'what is actually going to happen'. This is actually the way people pick entry and exit points. So... yes, sometimes you might say 'This guy is an idiot, this is way wrong!' with a high conviction, being right. Not to worry. Markets are made of expectations and the clash of conviction between its participants. Portfolio managers know that being an idiot is sometimes profitable and being smart is often a bad choice. It is all reality, sometimes good, sometimes bad. By the way: corrections to my analysis and intelligent debate is welcome. theintriguedtrader AT gmail do com

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