Yesterday I bought some more shares of Washington Mutual (NYSE: WM) at $39. Basically, I had to put my money where my mouth is because I have written about it as a safe haven and a defensive stock so often. Now with the sub-prime lending ruckus filling the headlines and driving the stock price down I thought I would take advantage of the fear in the market place. This is another wonderful stock for long term investors.

If you have money in a WaMu CD at the Online rates (which are higher than walk-in) you are receiving a smaller return on your investment than if you bought the stock which currently is yielding 5.56% - and you have no future appreciation.

There is no question that WaMu could drop further and that may have been able to buy it at a lower price. I have no idea where the bottom is, but for those of you interested in watching this one and possibly seeing long-term gains plus current income consider the following data points:

Continue reading Chasing Value: Washington Mutual - WaMu - (WM)

Chasing Value: Washington Mutual - WaMu - (WM) originally appeared on BloggingStocks on Wed, 11 Apr 2007 14:19:00 EST. Please see our terms for use of feeds.