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Strategies & Market Trends : Value Investing
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To: Jurgis Bekepuris who wrote (28225)9/25/2007 11:11:26 AM
From: Jurgis Bekepuris  Read Replies (1) of 78744
 
OK, so the bearish position on WSC is presented in my previous post: Munger does not consider Wesco an independent company and does not run it (in investing its capital) as if it was one. On the other hand, he and Buffett are not willing to merge it fully into BRK because they believe it is trading above intrinsic value.

The bullish position is based on similar premise really: neither WSC nor BRK will ever trade below intrinsic value (at least while Buffett/Munger are alive), since the moment they do, BRK/WSC will start buying their own shares. So the only opportunity for investors is to buy above intrinsic value or as close to it as possible.

So I return to my original claim: WSC is now trading closer to the intrinsic value than BRK, so it is a buy. The caveat that WSC is hamstringed by Munger's dual-role in WSC/BRK remains...
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