The US legendary investor, Warren Buffet has recently admitted that the total value of his company’s investment portfolios have been reduced by more than 20% and since the portfolios are heavily weighted in financial sectors, the loss seems unavoidable when the global financial sectors have been hard hit recently. Even a prudent investor such as him has to face the music of US economic downturns. The US government has been forced to near the corner by the trouble of US banks and the two mortgage giants, Freddie Mae and Freddie Mac. These two corporations found themselves running short of funds, i.e. illiquid in financial jargon. Of course for the rich investors, they are relatively deep pocketed and if they can survive and last till next economic up cycle, they would be able to gain back all they lost. For big investors, it is quite difficult to sell all investments and maintain 100% cash!
Meanwhile, the second richest guy after Li Ka Shing in Hong Kong is Lee Siu Ki (李兆基). He has been nicknamed the Asian “Buffet” by Hong Kong investors.
Yesterday he made his comments again on the market (昨再次開腔). Due to recently fallen market (由於大市回) ，the value of his company’s investment portfolios (他旗下兆基財經的投資組合價值), from the peak of HK$200 billions (由高位的二千億元)，fallen down to HK$150 billions (回落 一千五百億元) ，reduced by 25% (縮水兩成五). Faced with the US financial turmoil 面對美國金融風暴, the two mortgage giants, Freddie Mae and Freddie Mac’s liquidity crisis added further downturn risks to the second half of 2008 (房利美及房貸美危機). Sit tight and fasten the seat belts, the worst have yet to come. Maintain high cash position and be prudent in spendings, so that when the markets got to the real bottom, we are going to catch the big fat fishes.
July 20, 2008 at 4:29 pm
Successful investors only need to be right a little more than 50% right??
July 20, 2008 at 6:44 pm
Go China!