SWF's Holding Periods: (C),(UBS)

2 May 7:45am
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Now, this is a long term perspective..

In an interview recently on Bloomberg TV, Lee Kuan Yew the head of the Government of Singapore Investment corp. (GIC) said “We are buying into something that we intend to keep for the next two or three decades and grow with them.” He was talking about his recent $18 billion worth of investments in both Citigroup (C) and UBS (UBS).

He continued, “If there are other banks of the quality of the two that we bought into, with the promise and the capabilities and inherent capabilities to recover, we have got the liquidity to meet it, to make such an investment,”

Yew currently has 6% of the $300 billion in assets he has on hand invested in the two banks.

Why? Yew says both banks have good franchises and brands and GIC has a performance benchmark of 5 to 10 years. “Will there be another Swiss bank like UBS for wealth management? I doubt it, we doubt it, that is why we invested in it,” he said.

5 years from now we will look back at the current financial situation much like folks did in the mid 90's after the 1990-1991 recession and the mess financials were in at the time.

The large banks will get stronger as the weak get flushed and their will be score on investors kicking themselves for not pulling the trigger "back then".

Disclosure ("none" means no position):Long C, None

Todd Sullivan's- ValuePlays

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About

ToddSullivan

A Massachusetts based value investor, I look for companies whose current valuation is at a discount to their true value. When I purchase a stock, my typical holding period is several years. I consider buying a stock purchasing a piece of a business. I am confident once I make a decision to buy that eventually the market as a whole will recognize the true value of the business and value it accordingly. It may take 1 month, 6 months or a year, but if I buy it at enough of a discount to its true value my results will be (and have been) superior to the market as a whole. Of all the disparate investing disciplines, value investing has stood the test of time. The great investors of have all been value investors. Warren Buffett, Ben Graham, Bill Ruane (Sequoia Fund), Bill Miller and Wally Weitz, all have consistently outperformed the market for decades by using various forms of value investing. Currently I am a contributing writer to Seeking Alpha, Vinvesting.com, The Stock Masters and Value Investing News. Posts have been reprinted in The Wall St. Journal, Yahoo Finance, Google Alerts, Google Finance, TheStreet.com. 24/7 Wall St. and Topix.net.