First and foremost, I would like to address the latest post. I have a few concerns with Meredith. First off, the name? Is she 65 and just looking real young? Second off, I need a little more of a body shot before I define her as hot.
Anyhow, on to the actual topic of my post. As of today 8/18/2008, we bought Goldman Sachs and Tesoro. Goldman Sachs was a company we liked previously when it was coupled with a short of another financial. We took the best of breed (GS) and shorted it's competitor. We actually recently sold GS at $180, and we have now bought it back at a discount of roughly $18 a share. This allowed us to actually get a "share for free". We are looking for another trend from GS. They have currently been bouncing between about $160 and $180 fairly consistently. They also appear to be the only financial stock to be unharmed by the financial's downturn. We like the best company in the sector, especially at these levels.
The second company we bought was Tesoro. This is a very large refiner of crude oil. After the large run up of oil over the last year +, we feel they have lost their crack spread and are now poised to take back their margins. Oil has been progressively getting lower since the beginning of August, and we would like to ride TSO up to a fair market value.
This has been a synopsis of our thought process on what we recently bought and why. Any questions or concerns you see? Let us know. The more perspective there is the clearer the picture. Is clearer a word? How about more clear.
Monday, August 18, 2008
Buffet's Bet Against Hedge Funds
http://money.cnn.com/2008/06/04/news/newsmakers/buffett_bet.fortune/index.htm
Warren Buffet made a $1 million bet that the S&P 500 will have a higher return than a fund of funds picked by hedge fund manager Protege Partners. We won't know for 10 years what the outcome will be, but if you're like me you believe that an actively managed portfolio will beat an index fund especially during economic downturns like we are having now that give investors who short stock an advantage.
Warren Buffet made a $1 million bet that the S&P 500 will have a higher return than a fund of funds picked by hedge fund manager Protege Partners. We won't know for 10 years what the outcome will be, but if you're like me you believe that an actively managed portfolio will beat an index fund especially during economic downturns like we are having now that give investors who short stock an advantage.
Portfolio Weighting
The weighting of the portfolio is as follows as of 8/18/08:
Goldman Sachs 15% (New position)
Tesoro 17.05% (New position)
Apple 16.26%
HRP Properties 10.78%
Sadia 13.7%
Visa 15.63%
Cash 11.57%
More to come....
Goldman Sachs 15% (New position)
Tesoro 17.05% (New position)
Apple 16.26%
HRP Properties 10.78%
Sadia 13.7%
Visa 15.63%
Cash 11.57%
More to come....
Hot for an analyst
Meredith Whitney, a bank analyst at Oppenheimer, whose claim to fame is being critical of Citi before it tanked
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