What does Hank know?
Hank Greenberg, the ex-chairman of AIG (AIG), the guy who made AIG what it is today, hired an investment banker to help him figure out what the company is worth. He is thinking about unloading the stock. If Hank doesn’t want to own this financial conglomerate – and he knows a lot more about its businesses than you and I ever will – should an average investor own it?
I looked at AIG awhile back, it looks incredibly cheap on price to reported earnings, but its balance sheet has $40 billion “other” lines. Is it “other” good stuff or bad stuff? I don’t know. In today’s environment it’s likely to be the latter.