He bot preferreds, stupid

Or the perils of trying to copy Buffett by buying ordinary GE and Goldman Sachs shares. http://dealbook.nytimes.com/2011/09/14/buffetts-not-so-golden-touch/?nl=business&emc=dlbkpma21

Harbinger of a gd yr for US and the world?

With its diverse portfolio of business and finance units, including the nation’s largest nonbank financial institution, G.E.’s latest report presented a glimpse of expectations for US economy as it recovers from the downturn, and for the potential of global markets where the company is aggressively looking around for opportunities. Witness China where it is prepared to sell advanced avionics even if it transfers technology to China, a tranfer that can be used to hurt US commercial and military interests. “The Capitalists will sell us the rope with which we will hang them,”Lenin said.

Results

Global diversification via one blue chip

Tony Tan, deputy chairman of GIC is optimistic about Asia’s prospects and expects it to enter a ‘Golden Age’ in the next decade.

So if you believe him (remember MM Lee, GIC’s chairman, talked of something similar just before the global credit crunch and subsequent global recession), what to buy leh?

Just as CapitaLand is a “no-brainer” China play, maybe  this is “no brainer” for dummies to get global exposure?

“[W]ill continue to outgrow America over the coming years. Already 60% of its sales are overseas, and its bridgehead into China and India looks more robust than most.”

Of course you could buy an ETF that invests in a global index.