Author Topic: % of port invested in AIG  (Read 5594 times)

FFHfan

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Re: % of port invested in AIG
« Reply #10 on: April 02, 2013, 11:38:45 AM »
I don't understand most of the stocks people on this forum discuss - BAC, AIG, SD etc.  :'(

just stick with your circle of competence and you'll do fine over the long term.  :)
don't forget your mos.

there is nobody on planet earth who knows 100% how the macro economy works, Ray Dalio and his team at BridgeWater come close to 100%. Nobody at the FED, ECB, BOJ, BOC, BOE etc. ... comes close to 100%, too many ph.ds and too many models. Lots of people are guessing/ speculating based on short term economic data. Too much hindsight bias.

today 0%
« Last Edit: April 02, 2013, 12:49:59 PM by FFHfan »


siddharth18

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Re: % of port invested in AIG
« Reply #11 on: April 02, 2013, 02:16:51 PM »
It may be a screaming/no-brainer buy for the veterans, but if I don't understand something, I just won't buy it.  I've got to ask - many of those that are long AIG can truly digest the 350+ page annual report?

Hence, I just stick to the micro/small caps.

Regarding macro - Dr. Mike Burry has a pretty good track record of understanding it.

ERICOPOLY

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Re: % of port invested in AIG
« Reply #12 on: April 02, 2013, 03:02:04 PM »
I've got to ask - many of those that are long AIG can truly digest the 350+ page annual report?

Hence, I just stick to the micro/small caps.


I guess the Berkshire Hathaway report, at only 112 pages, would be the much longer of the two if it provided an equivalent amount of information about each subsidiary.


nkp007

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Re: % of port invested in AIG
« Reply #13 on: April 02, 2013, 03:17:55 PM »
I've got to ask - many of those that are long AIG can truly digest the 350+ page annual report?

Hence, I just stick to the micro/small caps.


I guess the Berkshire Hathaway report, at only 112 pages, would be the much longer of the two if it provided an equivalent amount of information about each subsidiary.

Understanding a business doesn't mean you understand every single element of it, but rather that you understand the probability of your upside and downside.

The simplest businesses to understand are lemonade stands. If you're going for simplicity, buy a mafia network of them.

siddharth18

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Re: % of port invested in AIG
« Reply #14 on: April 03, 2013, 12:43:56 AM »
I've got to ask - many of those that are long AIG can truly digest the 350+ page annual report?

Hence, I just stick to the micro/small caps.


I guess the Berkshire Hathaway report, at only 112 pages, would be the much longer of the two if it provided an equivalent amount of information about each subsidiary.

Understanding a business doesn't mean you understand every single element of it, but rather that you understand the probability of your upside and downside.

The simplest businesses to understand are lemonade stands. If you're going for simplicity, buy a mafia network of them.

Well yes. I suppose I'm just naive. I don't have much experience in evaluating insurance businesses and part of me just equates the size of the annual report to the complexity of the business. I also equate a full understanding of the business to having an edge in a particular investment. With AIG, I neither have a complete understanding of the business (a complete and thorough cognizance of all elements) nor foresee a competitive advantage over today's sellers of AIG.

But it doesn't bother me one bit; I just move over to stocks in my wheelhouse!