Monday, May 10, 2010

Focusing on Price

Great advice from Barry Ritholtz, the CEO of FusionIQ and author of Bailout Nation.
Always remember that price is the most important aspect of any investment. Today we keep hearing people talk about "toxic paper" on bank balance sheets. Will, it's toxic to the banks because they paid 100 cents on the dollar for it. To somebody who buys it for 30 cents or 40 cents on the dollar, it's not toxic at all. So there is no such thing as a toxic asset. There's no such thing as a damaged property. There is only a bad price.

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