Thursday, May 20, 2010

Sucker Search

Every time an investment turns from rocket-up to plummet, there's always a search for a presumed sucker who bought at the top. Last December, it was Barrick and its de-hedging. This time, Fortune blogger Colin Barr offers the name of value investor Jeremy Grantham. Grantham, a long-time gold skeptic, first bought some in March 2009. Last Friday, he bought some as well.
"I hate gold. It does not pay a dividend, it has no value, and you can't work out what it should or shouldn't be worth," Grantham said, according to an account of the comments by Robert Huebscher of investment advice provider Advisor Perspectives. "It is the last refuge of the desperate."

Grantham... then went on to deliver the punchline -- that he bought some last Friday.

Of course, the final tally isn't in yet. Recently, Barrick did benefit some from closing its hedge book.

No comments:

Post a Comment