Over the years, I, like many of you, have had business ideas that I never attempted. One was a simple ice cream shop in my home town where there were none. Of course, a year later Swenson's moved in. That they failed is not my fault.
In 2009, I thought that someone should start a bank fund and buy the 30 worst names in the biz. Remember, Citigroup was trading under under 5 bucks and more than a few experts thought it was about to go under. What would happen if we owned 30 names at such prices and a full 25% of them went bankrupt? The other 75% were going to survive and probably double. Seems like a good portfolio to me.
Well, Citi doubled before reversing and Wells Fargo tripled. Talk about buying when there is blood in the streets!
Now I'd bet that a piigsy fund of the best names in the PIIGS countries would make for a good portfolio. Even if one country went "under" all the companies within would not go to zero. And what if these countries survive financially? Well, you know.
Is this the right time to dance in this party? It may be early and we'll probably need to see some more market damage. But if any of you, dear readers, put such a fund together, I want to get in at insider prices.