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Strategies & Market Trends : Value Investing

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E_K_S

To: Paul Senior who wrote (58372)	11/3/2016 8:24:58 PM
From: Spekulatius	1 Recommendation Read Replies (1) of 78731

Re AIG- I am with you that AIG is cheap and on a slow road to recovery. The book value of $82 includes AOCI (embedded gains from bonds which will be held to maturity), and without those, AIG's book value is about $62, which is a bit higher than the current shareprice. AIG has issues with reserves and had to take extra charges every couple of years, so I would assume that further charges are possible, or in other words, AIG's book value may be overstated. I still think that even with the caveats above, AIG is a worthwhile buy, if you buy it below book ex AOCI. I bought shares when he stock fell to $50 earlier this year and would happily buy more. It's a slow motion turnaround and capital redeployment story and that is just fine with me.

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