5 September 2007 – The Aleph Blog

Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control

Selling Barclays plc

Selling Barclays plc

Posted on 5 September 2007 by David Merkel

I sold my stake in Barclays plc today outright for cash.? This was a tough one, but since I also own Royal Bank of Scotland and Deutsche Bank, I wfelt I had enough exposure to global investment/commercial banks in the midst of what is an uncertain situation, with considerable embedded leverage in the investment banks.

I have a rule that when I can’t decide on a course of action, I do an average of what the various options would be.? I’m not selling all of my exposure.? I’m not hanging onto it all.? So, I’m selling part, and Barclays has had the worst recent PR with respect to its conduit and borrowing activities.

Are these names cheap?? Yes, and could get cheaper. If the unwind of leverage in the financial sector worsens, all investment banks will get hit.? If not, they are cheap.? So, I leave some on, and will look for other opportunities later.

Full Disclosure: Long RBSPF DB

Tickers mentioned: RBSPF DB BCS

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