Monday will be the Memorial Day holiday here in the US, making this a three-day weekend for many. I think we're in early innings still with regards to the whole bear market/financial mess. And with that in mind, here are five items you may wish to review over the next two or three days. Here we go.
- Portfolio holding Cheung Kong Holdings (CHEUY) held its annual meeting this week. Li Ka-shing, who runs the conglomerate and is also Hong Kong's richest man, urged investors to be cautious about buying stocks: “If you ask me if the stock market can go higher, it’s possible,” said 80-year-old Li, known as ‘Superman’ locally because of his investment acumen. “But be careful, the economy still has some problems this year.”
- The Michael Lewis review of Alice Schroeder's biography of Warren Buffett got wide mention on blogs this week, and deservedly so. Lewis is among the best writers out there on business and finance, and this is yet another more-than-worthwhile read. That said, I've always felt that Buffett is the greatest investor in American history. Period. His political views, personal life, and any eccentricities are really irrelevant to that.
- Speaking of Buffett, here's a look at Berkshire's recent AGM, courtesy of The Globe and Mail. It features comments by attendees Prem Watsa and Tim McElvaine: "Over time, my investment windshield gets littered with dirt," he explained. "Going to the Berkshire AGM is like getting the windshield cleaned. I go away thinking more clearly about what I do."
- Via the Can Turtles Fly? blog, I came across a detailed interview with Seth Klarman. As you know if you read blogs like mine, Klarman keeps a low profile. So this ranks as truly good stuff.
- You couldn't help but read or hear the news that Pimco's Bill Gross said the US will "eventually" lose its AAA credit rating. Bloomberg's Mark Gilbert writes an interesting column on the prospects: "It is undeniable that the U.S. government’s ability to finance its borrowing commitments has deteriorated as its deficit has ballooned. Dropping the U.S. from the top rating grade, though, wouldn’t mean the nation is about to default on its debt obligations; there’s a subtle distinction between ability to pay and propensity to fail to pay. There’s also a compelling argument that no government should be enjoying the benefits of a top credit grade in the current financial climate."
If you live in the US, have a great Memorial Day weekend. Those of you outside America have a great weekend as well. See you Tuesday or thereabouts. Stay safe.
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