Who’s The Sucker? It Could Be You

Today’s Wall Street Journal carried an article on the outlook for 2010 IPO’s and how private-equity exits may comprise a large number of new issues coming to market.

I could not help but be reminded of another IPO, not of a private-equity sponsored firm, but of an actual private equity firm — in fact, the largest of them all — Blackstone Group (BX). Even amid the frenzy to get in on the offering, many mainstream media outlets questioned the wisdom of buying into BX at what was possibly (and now confirmed) the top of the market for private equity. Barron’s even ran a front cover feature [$] asserting this position and nearly 3 years later, BX shares have lost over half their value from the initial offering price, even taking into account last year’s monster rally.

People have a bad habit of making things harder than they need to be and nowhere is this more true than the world of financial markets. In a world filled with greeks, charts and financial metrics, sometimes it can be as simple as looking across the table and realizing that someone is setting you up to be the sucker.

If Warren Buffett is offering to buy something from you, know that he is taking you to the cleaners. If private equity firms like Blackstone or KKR are trying to sell you something, know that they are taking you to the cleaners.

In fact, Buffett himself often quotes the old poker quip, “If you look around the table and can’t figure out who the sucker is, it’s you.”

One Response to “Who’s The Sucker? It Could Be You”

  1. Jess Says:

    hello beautiful canhtal, you look gorgeous here as you do always. your smile brightens my day every time i come here and thank you for that. i just wanted to respond to anon 1:58″And I like the black boots a lot – except from the fact that they are a total rip-off from Camilla Skovgaard.. You have an amazing style, but buy the original design, so the great designers can be paid and can keep on making beautiful designs”i have seriously thought about this comment for a couple days now and just decided to respond because it really disturbed me. first of all who in their right mind has $600 up to pay for “designer” shoes? especially a woman living alone in new york trying to support herself? you don’t think that design has been done by someone else before camilla skovgaard did it? i would like to know your suggestion on how we are supposed to afford such things and btw unless this is camilla skovgaard speaking herself why do you care about supporting designers so much? believe me they are getting paid and there are millions of people/bloggers who are willing to go into debt over a pair of designer shoes and how attractive is that? if you need someone to rip on come on over to my blog where i am wearing a knock off of a knock off. yes a $30 dollar pair of shoes. gasp! and btw…..i try to support independent designers as much as possible but sometimes it’s hard, especially in a recession.okay i am so sorry canhtal that i went on a rampage, i don’t usually do such things. i just read an article about how many bloggers are going into debt over keeping up with trends and personally i think it’s all bs. out of necessity comes creativity and i find that most of the time the people that don’t have money have the most style.you can delete this novel, i just had to vent.sending you love and i completely support you in all that you do.xxxt

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