Thursday, August 25, 2011

Buffett and BAC

This article almost perfectly mirrors my own thoughts on Buffett buying in to BAC.


Do you remember a time when you were a child and and you wanted to do something but your mom prevented you from doing it? Then, you responded, “Mom, but John is doing it. Why can’t I do it?” Your mother responded, “If John jumped off of the top of a building, would you follow him?” What a great lesson this has been for me.

Unfortunately, the majority of people never learned this lessons that their mothers tried to teach them. Instead, they keep following others, refusing to think for themselves. However, this time around, they are too old to have their mothers follow them around and prevent them from doing stupid things like giving their wealth away by selling dirt cheap stocks just because other people are selling them. It becomes even more ridiculous – they graduated from following other people to following brainless computers who are responsible for many of the trades on the exchanges...

If you think that Bank of America is a good investment at these price levels, then buy. If you think it is a bad investment, then don’t buy it. But don’t blindly follow other investors. Remember to do your own thinking. Bank of America will succeed or fail with or without Buffett’s involvement. He does not run the company and is nothing more than an outside investor...

Disclosure: None. This is not advice of any kind. This is not a recommendation of any kind. I have received nothing to write/post these notes. Always do a ton of your own research in regard to anything that I say, do, write, or so much as even think about.

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