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Oct 01 2008

Building on what Seth Godin wrote…

Posted by: Lynne in Investing, tags: Investing, Seth Godin, Warren Buffett

Now is the time to start a business according to Seth Godin. I was reading through the last several posts on his website and came across this one. I would like to build upon his idea. Now is also the time for strong companies to leap frog over their competitors through strategic expansion and investment. In this market, there are opportunities to purchase undervalued assets. Think JP Morgan Chase’s purchase of Bear Stearns. There are opportunities to strategically invest. I heard Warren Buffett speak 5 or 6 years ago about a decision early in his career to purchase IBM shares at a time when he believed the stock was undervalued. Since then he had seen an incredible return on his investment. I am betting his investment in Goldman Sachs will also prove his reputation as a savvy investor. By purchasing perpetual preferred stock he receives a 10% dividend. Don’t forget the opportunities to invest internally. A few weeks ago I wrote about iKnowtion which is investing in their staff and their future.

This entry was posted on Wednesday, October 1st, 2008 at 7:23 pm and is filed under Investing.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Building on what Seth Godin wrote…”

limeduck says: October 2nd, 2008 at 8:56 am

Seems like Warren’s identified a few buying opportunities in these crazy times. Personally, I’m wondering what the sorry state of equities will do to the markets for commodities or even collectibles and fine art.
Craig Alexander says: October 10th, 2008 at 11:42 pm

Wholeheartedly agree that situations like this can provide opportunities for those with appropriate assets but all too many will fail to act…. As to fine art etc - some of the price rises undoubtedly reflected Wall St pay but it would be interesting to compare indices of GDP, art prices and equities!
admin says: October 27th, 2008 at 8:20 pm

I was at an art auction this weekend and saw the consequences of the failing economy first hand. There were fewer buyers and lower bids than last year. I also expected to see buyers flock to work by established photographers who would be seen as more stable investments, much like investors who have been putting their money into gold. I do not know the photographic art market well enough to determine if that was true.