September 29, 2008


throwing the baby out
with the bath water

One of the advantages to being a long term resident of middle age is that I have seen this before. There is comfort in knowing that this too, shall pass. Armageddon Now? I very much doubt it and if it is....who will care? One of the oldest maxims in the investment business is that when there is blood running in the streets, it is time to buy. The only saying older than that is, Buy Low Sell High! Well, it looks like we are here.
The turmoil that we are seeing is the perfect storm since the markets and financial pointy heads are beating down the prices of some incredible companies in a panic that we haven't seen for some time. The possibility is that it might even get worse - a financial bale out package of almost a trillion dollars is still a question of adding additional debt! They couldn't afford the debt they had already built up so adding more will result in what? We may not be at the bottom but we are definitely at the time to start accumulating quality companies and continuing to do so because the long term result will be a financial gain for the strong of heart that will take your breath away.
When everyone else is jumping out of the boat, grab an oar and buy like hell!!!

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