MBIA, Inc. (NYSE:MBI)
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The Company provides financial guarantee insurance and other forms of credit protection as well as investment management services to public finance and structured finance issuers and investors and capital market participants on a global basis.
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I was impressed by Bruce Berkowitz's investment in MBIA and in AIG. Yes, huge risk involved in both (especially AIG with the Federal government in the picture). However, these are situations in which there is much inherent value if the financial pitfalls can be negotiated. Downside, obviously, is that either or both become worthless. Upside, equally obviously, is that either or both turn into 10 baggers, much like Peter Lynch's investment in Chrysler way back when. Accordingly, I have placed a small amount of risk money in my personal portfolio in both stocks, and have made the pick here as well.