Financials

What the Pros Say: Watch What Buffett Is Doing

CNBC.com
WATCH LIVE

Warren Buffett's move intoGoldman Sachs has cheered up some investors, as it signals there may still be value to be found in the battered financials. Watch what the experts are saying:

WALL STREET IN CRISIS - A CNBC SPECIAL REPORT

Goldman's Hidden Value

"You can't paint the financials with a broad brush. But I think people are looking at Goldman Sachs and seeing a lot of value here and seeing a company that has really done quite well throughout the crisis," Steve Massocca, president & head of equity at Pacific Growth Equities said Wednesday.

"They (Goldman) actually profited from the subprime lending crisis, if you remember from a few quarters ago. So, certainly to look at Goldman Sachs, with the leverage ratios significantly lower then at say Lehman or Bear Stearns, it's easy to see why Buffet sees value there."

Buffet's Vote of Confidence

Warren Buffet's investment in Goldman Sachs helped build confidence in Wall Street, said Mark Konyn, CEO of RCM Asia Pacific.

Konyn believes the bailout package shows the industry is moving in the right direction.

Best of the Bunch

"It's probably a better deal for Goldman than it is for anybody. But Warren Buffet has had the choice to cherry pick and take what's probably the best of the bunch in terms of making an investment. Goldman wasn't particularly in any trouble compared to the rest of it," Simon Grose-Hodge from LGT Bank in Lichtenstein said.

"I don't really think it's any great change in the overall picture of the market and if we're going to make progress, $5 billion at time, then we're all going to be as old as Warren by the time we get out of this mess."

Markets Are Still Robust

"I still think the markets are remarkably robust given the degree of uncertainty which, at least in my lifetime, is unprecedented," Anthony Fry from Evercore Partners said.

"Look at the overall market and look at their (companies') overall positions."

Investments to Shield You from the Storm

Investing in traded life policies will shield investors from the financial storm, according to Jeremy Leach, MD of Managing Partners.

Go to Non-BRIC Emerging Markets

"What we've seen this year is the revenge of the non-BRICs, the Morocco, Chile, Argentina, Czech Republic, Poland - that is probably the defensive emerging market play that I recommend this year and wait until all the corrections in Russia, China and these type of markets is over," Dr. Christian Raubach, managing partner at Wegelin told CNBC.