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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Jurgis Bekepuris who wrote (47901)10/15/2001 1:48:36 PM
From: Pirah Naman  Read Replies (1) of 54805
 
Jurgis:

Care to educate about E distortions?

Take a look at the items that make up the equity - see near the bottom of a balance sheet. You will note that some ars subject to distortions.

If you mean increasing debt, don't buy high d/e companies.

Debt won't affect your E.

Note, I am not saying that the method described in Buffettology needs to be discarded; I'm just saying that as with any method, learn where the pitfalls are.

Care to elaborate?

Better if you see it for yourself. Use your favorite stock screener for very high ROE companies. Use them in the spreadsheet. You can even compare the predicted outcome to historical outcome. :-)

- Pirah
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