Greenlight Capital's David Einhorn was speaking today at the 5th Value Investing Congress in New York City.
Two years ago he appeared as a highlight lecture of the show, and laid out his reasons for shorting Lehman Brothers stock. Needless to say there was quite a bit of attention to what he had to say today.
Here are some highlights:
1. A very bleak outlook for the US economy
2. US has a lack of political will to adopt needed financial reforms.
3. Right now he would like to hold gold rather than cash because "gold benefits from poor fiscal policy."
4. Buying long dated options on much higher interest rates in the US and Japan
5. Singled out GE as thwarting financial reform due to their intense lobbying efforts.
Transcript of David Einhorn's presentation.
"Some people see God as they see a cow, and love Him as they love a cow — for the milk and cheese, and the profit it brings. This is how it is with people who love God for the sake of worldly possessions or inward comfort. They do not truly love God when they love Him for their own advantage. The eye through which I see God is the same eye through which God sees me; my eye and God's eye are one eye — one seeing, one knowing, one love.”
Meister Eckhart, Predigten und Traktate