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Non-Tech : Berkshire Hathaway Class B

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To: Dale Baker who wrote (907)	8/7/1999 10:15:00 AM
From: Benkea	Read Replies (2) of 1652

Dale: "You miss the point by automatically assuming that Buffett's current combinations of business will succeed wildly in years to come." With VERY RARE exception, wholly owned subs have flat rocked with little or no capital expenditure for DECADES. This throws off mucho cash for Buffett to redeploy into such things as the $100 mil GEICO ad budget or the $multi-billion jet purchases for Execujet. "Coke and razor blades have not done well in a while." Actually, their businesses have done FANTASTICLY while their stock performance has sucked. However, since over 70% of their earnings come from abroad, the strong dollar (weakening very quickly) has been more their trouble. When the dollar bubble bursts (as it is starting to do now), the companies will return to wildly profitable. decisionpoint.com PS. The above chart is inflationary as all hell. "But since you aren't averse to momentum trading on top of your BRK holdings, try to take it easy on people who play AOL too." My only problem with "AOLers" is that they come bother investors about the short-term stock market performance of BRK. In fact, I have a TINY, TINY stake in FOCTX managed by Hagstrom (who has written several books on Buffett). That fund is 25% in BRK and 25% in AOL! "Right now the majority of investors don't seem to be betting that it will." The "majority" of BRK investors (97% of them to be exact), that own their shares at the beginning of the year still own them at the end of the year. BRK has the lowest shareholder turnover of any NYSE stock. I would say the 3% MINORITY has it ALL wrong. :)

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