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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Fintas who wrote (1925)	9/20/2014 8:36:10 PM
From: ETF1	Read Replies (1) \| Respond to of 26678

I wouldn't consider AIG a growth stock Yeah, it's the value mutual funds that I notice are holding AIG Morningstar says it has a Price/Book of 0.7, a Forward P/E of 11.4, and a 10-year annualized return of -22%, versus the S&P 500 with a Price/Book of 2.42, a Forward P/E of 17.48 and a 10-year annualized return of 8.18% Definitely a value stock I do find it to be popular with some of the better value managers. No question that off the bottom AIG did well. And keep in mind ol Bruce is a bottom fisher. Why did Bruce put half the assets of Fairholme in one stock? At one time it was 52% in AIG. Now it's 49%. Were there no other bargains out there, amongst the thousands of U.S./foreign stocks he had to choose from? What about the risk involved in doing this? The insurance sector which is now at 70 and change is on the verge of turning over. The momentum for that sector sold off 15 this past week. More downside should be expected and there's lots of room to go lower. So whether the sector bounces a bit or not to push to 72, when the number 68 for the sector is hit. Say hello to the 40's for AIG AIG is now at $55.24 AIG.. And it's the insurance business and it would not take too much for it to drop into the 30's. Here and now using the 4.86 value box most should see 43.. Whether it pushed to 58/63 or down from were it sits. Now Bruce can use my info if he wants. SMILE Bruce seems to be quite comfortable having the most concentated, least diversified mutual fund around..... For 11 years, he had one of the best performances around. In the bear market of 2000, 2001 and 2002, his total return was almost unbelievable. In the bear market of Oct 2007-March 9, 2009, he also did quite well on a relative basis. In 2011, he suffered huge losses due to his financial positions. I'm not comfortable with a mutual fund that has half its assets in one stock. We'll see how it all works out.