ramblings, corporate bonds, iphone and oracle of omaha  

Posted by Book Eater

Hello to my stranger friends in the virtual world! hehe. Joke.

Here are some of my ramblings for the week.
1.) I love Iron Man! So cool! I don't want to spoil any of your time but go watch! u'd love it.
2.) Hmm.. Iphone for 199USD? Cool!! I might get one if ganun na lang ung price! Check this article: An Iphone for 199?
3.) I love Warren Buffet's ideas on corporate bonds and I believe that if you're traumatized with equities, why don't u consider corporates? I dont assure that its safer but it sure is very attractive. I place my money where my mouth is. :)

Asset allocation wise for conservative investors, im confident in placing 100% corporate bonds in different countries such as brazil, russia, and some china. Specific companies--u need to make ur due diligence in selecting, but technicals wise...ok na sila. You get yields from 8% to 15%. I'm not joking or some scam person.

Anyway, I am very bullish with the current short term play. HK and US markets are the best. Sadly I only know of HK markets (but its been doing good. very well.)

Hope that readers of this blog get encouraged and try to open HK market accounts! I'm not advertising this but im using citiseconline HK accounts. there are others like boom securities and all but its in hongkong. U can choose ur own brokerage house. Doesnt matter.

Come on! If you have questions, ask it here. My mail's just posted online.

See ya guys.

Here's a short summary from an article in Marketwatch about corporate credits:

Good luck is preparation plus opportunity

Now, as thousands of Berkshire shareholders prepare for their annual pilgrimage this weekend to the company's headquarters in Omaha, Neb., some are hoping Buffett has the crisis he's been waiting so patiently for.

corporate bond spreads have ballooned -- a measure of rising risk aversion.

"This year's meeting is going to be so good because he's really a tremendous recession/crisis investor," Jeff Auxier, manager of the Auxier Focus Fund and a Berkshire shareholder, said in an interview this week. "He's the type of investor who comes alive during these types of crises and he has the balance sheet to act."

"We've got fabulous capital markets in this country, and they get screwed up often enough to make them even more fabulous," he told Fortune. "I mean, you don't want a capital market that functions perfectly if you're in my business."

Berkshire has also made big bets on high-yield, or junk bonds, which have suffered in recent months from the credit crunch.

Berkshire bought junk bonds in 2002, during the depths of the dot-com bust, and ended up making billions on the positions.

The current credit crisis has triggered even more forced liquidations of investment portfolios than in 2002, explained Russo, who's largest investment is in Berkshire stock.

"It's very, very telling that he has not made any investments," said Whitney Tilson, head of hedge fund firm T2 Partners LLC and a Berkshire investor. "Every major pool of capital in the world has made big investments in distressed financial institutions. He's seeing every deal, so why hasn't he done one? Maybe because he thinks things will get a lot worse."


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