Hi Guys, A friend of mine had an extra 3000 lying around, he asked for my advice, and asked on the following stocks. Were Canadian as well, so didn't think about the currency devaluation, but I think the CAD is too overpriced at this point. AMBAC -Major Company, don't see it shutting down anytime soon HMH - High Income Fund Trading at 86 cents, monthly dividend of about 12% Down from 15$ BRK.B I told him to buy 1 share of Berkshire for his kids.
Buy BRK-B and forget about it. It's a cross-section of the market and better run than most index mutual funds anyway.
Indeed... They just got downgraded from BBB to CC. Even if the Wisconsin regulator allows them to use reserves to pay claims, it's not gonna do them any good. In general, it's true that, funnily enough, the closer to death a monoline gets, the longer its expected life going to be, since counterparties will be increasingly willing to accept whatever they can realistically get rather than the full claim they're entitled to.