Good Idea, Wrong Justification

Implications: KDB in this case is playing the role of the blind squirrel who finds a nut.  It is wise to invest opportunistically, in ventures that are cheap, WHEN YOU UNDERSTAND THAT YOU ARE NOT KNOWLEDGEBLE IN HOW TO RUN THESE BUSINESSES. 

Analysis: The article states, "The last minute rush to put together a credible group is thought to have been prompted by South Korea’s Financial Services Commission, which privately believes that the country should be pushing to create a global investment banking champion and sees the current woes of Lehman as a perfect opportunity to take control of a Wall Street brand at a knock-down price."  Buying into a business on the cheap and then exerting your control over it, with no knowledge of how to run it, is a foolish endeavor.  If KDB can let Lehman be Lehman as a passive investment, they will reap rewards, especially as it is Lehman, a well run shop caught in the malaise that is this current credit market.  If they choose to purchase a mjor stake in Lehman and use it as a platform to launch something bigger, it will fail.  (See UBS, CSFB)