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UNTRUE_PREDICTIONS

Investments _ USA

It is a pleasure to introduce a new column - Untrue Predictions - No guarantee of the viability of these predictions. I do not have a crystal ball. Nothing written here is any kind of financial advice or recommendation to buy or sell anything. Contact your own advisers for that.

Sallie-Mae fits well with Berkshire Hathaway. Berkshire is an insurance company and a financial player headed by Warren Buffet. Sallie Mae has many pluses for Mr. Buffet:

• Can employ large doses of capital (Berkshire has a lot of capital to employ) over long terms.
• Growing customer base (echo baby boom - goes to college)
  
• College expenses are growing faster than inflation
• More borrowing for college as savings are down.
• Long term loyal customer base - with cross-selling opportunities.
• Clean - economies of scale in technology, and other profit drivers
• Customer acquisition and servicing costs keep coming down due to technology(web), ala GEICO a major holding of Berkshire.
  
• Global expansion possibilities as the world populations expand the need for education worldwide - as they urbanize and move to service industries.
  

Sallie Mae is being re-priced and may be upto offers again. Rumor has it that Mr. Buffet is going after a position in Bear Stearns, while JC Flowers is abandoning Sallie Mae at the alter. If Mr. Buffet is reading this, a favor of some credit for the mention would be appreciated. As to Sallie Mae being a bargain or not, I will leave that judgement to the buyers or buyers to be. Bye, Bye. I do not guarantee any reply or moderating on this blog.

American Idol Aid - Africa and Charity

American Idol had its' two hour long Idol Aid show under the banner of "Idol Gives Back". A tremendous effort of prime time fund raising, which should be commended by all. Africa does need help, and needs help in MEGA DOSES. Contribute your heart away, please. It is very impressive to see a show of this position focus on such worthy causes.