Wednesday, April 22, 2009

Outrunning the bear

I read a story once whose moral was that if a bear confronts you and a friend in the forest, you don't have to outrun the bear but just your friend. 

The great saga of the detroit Big Three has a similar undertone.  Ford has managed to outrun the other two and come out the winner.  It is so hilarious to watch Goldman pick the winner as Ford, the same day GM announced that it will miss a June 1 debt payment.  Firms that have built-up fortunes by providing financial advice have more than adequately shown that they are no better than a monkey doing the same thing.  It is a wonder that they are still managing to offer advice.

For many years Wall Street has advised common investors to invest long-term while they made short-term profits with the greeks.  The irony is that the greeks came back to haunt them badly and lead to many a firm's demise.  There are no magic tricks to long-term investing except discpline and common sense - something the fianncial world was found wanting.

No comments: