New Positions!!!

Initiated two new positions today.  TARP warrants of Bank of America (BAC.WS.A) and Wells Fargo (WFC.WS). Both positions are individually slightly over 1% of the portfolio and are long term plays with a 5 to 7 year investment horizon. The positions are small enough to warrant more buys if prices decline further. Bank of America TARP warrants are a current holding of Francis Chou. Bank of America stock is held by Bruce Berkowitz. Wells Fargo is a well documented holding of Warren Buffett and Prem Watsa. Francis Chou holds warrants on WFC as well. The risk reward scenarios on the warrants are a lot better than the common stock.

I, probably hold the most hated list of stocks in the US market today. Long on Cisco, Goldman Sachs, Bank of America, Wells Fargo and Fairfax financial. Short on the S&P. The portfolio is positioned to be more volatile but consists of undervalued companies with a margin of safety.  With utter disregard to the macro economy and the concentration in the financial sector, I will be lagging the market for a considerable time. A significant portion of my portfolio is still in cash. However, I am finding a few cheap stocks in the large cap environment.

I am continuing to evaluate Wal-Mart, Google and Johnson and Johnson. Will post more on the warrants.