Vitaliy Katsenelson Contrarian Edge » AIG http://ContrarianEdge.com Vitaliy Katsenelson blog on the economy, stock market, and stocks. Applying Active Value Investing approach. Mon, 06 Feb 2012 16:59:23 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 What does Hank know? http://ContrarianEdge.com/2008/01/22/what-does-hank-know/ http://ContrarianEdge.com/2008/01/22/what-does-hank-know/#comments Tue, 22 Jan 2008 21:52:32 +0000 Vitaliy Katsenelson http://ContrarianEdge.com/2008/01/22/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.

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