Posted on 02/28/2009 4:30:36 AM PST by TigerLikesRooster
Talking Shop With a ‘Vulture’ Investor
2/27/09 at 3:20 PM
In the financial industry, there used to be a niche specialty called "distressed investing." Some called these folks vultures, because in the aftermath of a collapse, they would go swooping in to buy up the wreckage on the cheap. That's not much of a specialty anymore — the state of the market means we're pretty much all vultures now. But we thought we could get some perspective by getting in touch with an old friend who is on the front lines — he trades at one of the most established and respected distress funds. Last time we saw him in person, around Thanksgiving, he was talking Apocalypse with a capital A and scaring the crap out of everyone. It was a great holiday. We thought, given how many fabulous buying opportunities people keep saying are out there, his mood would probably have improved by now.
We were wrong.
NYM: How are you doing?
V: Since I saw you last, things have deteriorated more than even I could have imagined. We're invested in virtually all sectors, primarily through debt, so we have pretty good access to management. The color coming from them is mind-bogglingly awful. We need to flush all the banks and start again. I told my wife I'm putting gold bars and shotguns under our bed.
(Excerpt) Read more at nymag.com ...
Ping!
Isn't that basically how Warren Buffet made his money?
The guy is conveniently talking up his book.
Panic makes him money.
Warren Buffett: When others are greedy, I’m afraid, when other are afraid, I’m greedy.
What’s wrong with buy low/sell high? Money is made on the date of purchase...just hold the operation together until you sell it.
I like buy low/sell higher, so much so it is all I do. As a matter of fact, I like the whole capitalist free market system.
Money is made on the date of purchase.
Only to the non-speculative investor which is not my class of investment and, for me, a speculator is a little crazy. I agree with Taleb on risk.
...just hold the operation together until you sell it.
My job exactly.
This guy sounds like a low-level trader.
I'm reminded of the torture scene in the Serpent and the Rainbow where the torturer tells his victim "I want to hear you scream," and the victim screams loudly in terror, and the torturer replies "not loud enough" and begins to do unprintable things.
Yes, when others are afraid I'm greedy. But they're not nearly afraid enough yet.
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