Warren Parties Without Me

Over the past few weeks I've probably been in a hundred discussions about the financial/economic crisis (different, but very related). A few of them have been pretty in-depth, but the majority have been focused around current events with commentary like "this sucks." My roommate made a really good point the other night - that we're both young and debt free, so this marginally affects us. It's tough for me to imagine what life would be like right now if I were pretty levered up or had a lot of money that I couldn't afford to lose in the markets. I'm quite thankful.

Anyhow, one question that many people kept asking me was what my strategy was through all of this. Where is my money? What advice would I give them? Well, for the first time in a long time I really started considering my positions - why I was there, what I thought would happen. - and I came to a pretty sad realization; I am totally a sheep. Now, I'm not a sheep by its true definition (never have I really made an investment off of a popular story or emotion), but I totally have more in common with sheep than bulls or bears. I've even been known to be a pig every now and then (like in my decision to hold AAPL all the way down!). Quite frankly, I just do not do enough analysis in my investments or plays. For the most part, I do a little subjective homework, watch it for a few days, and then make a move. I haven't really defined what my targets are, or what my exit strategy is before I get into a position.

Not very good investing by anybody's definition.

Regardless, this has been a great learning experience. I haven't lost very much (a small ding, but nothing that isn't recoverable - and still better than the market) and I think I'm going to be in a good position going forward. I couldn't have really asked for more than that. Quoting JFK: The Chinese use two brush strokes to write the word 'crisis'. One brush stroke stand for danger; the other for opportunity. In a crisis, be aware of the danger-but recognize the opportunity.

First Goldman, now GE. I think Warren Buffett will make a killing.