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By Jason Stipp | 04-01-2011 03:00 PM

What Were They Thinking?

Morningstar markets editor Jeremy Glaser considers some curious judgment calls from the week.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to the Friday Five.

We have a head-scratching Friday Five this week. Five stories where you have to sit back and say, "What were they thinking?"

Joining me with the details is Morningstar markets editor, Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're very welcome, Jason.

Stipp: So, what do you have for the Friday Five this week?

Glaser: This week, we're going to take a look at a buyout offer for AMR, at Berkshire Hathaway, at Irish banks, at Congress, and finally at Google.

Stipp: So, Jeremy, I think you could legitimately ask, "What were you thinking?" for any offer for an airline, but we saw a really questionable one this week. What was the story there?

Glaser: Sterling Global, which the buyout fund that no one has ever heard of and I don't think anyone will ever hear of again, put out a press release saying that they had made an offer to buy AMR, which is the parent company of American Airlines.

American Airlines have never heard of this company, didn't think it was a real offer. Most people didn't really think it was a real offer, but somehow the stock did manage to trade up a little bit. So if their goal was to try to get a short pop out of the stock, maybe they got it with this press release, but certainly you have to question someone who is coming up with these fake buyout offers and the fact that a large percentage of the market, or at least some percentage of the market, bought into it.

Stipp: So Jeremy, on Wednesday this week, we got, I guess you'd called it, some shocking news out of Berkshire Hathaway. What's your take on that situation?

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