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BRIAN; GREAT POST MAN! You are so right! It's pretty funny how so many people don't agree with T/A, even though most of the people getting things right on Wall Street are in fact T/A people. Go figure! I don't place Buffet on any pedistal because anyone that got an opportunity to buy Coke stock at $2 would obviously have made a great return. I personally think he has really missed the boat the last decade or so. Granted he is still a multi-billionaire, it is no surprise that he is being surpassed in wealth by tech guys that are half his age. I was just reading an article in Smart Money about how in 1979 he passed up an opportunity to invest $4 million in INTEL as a venture partner. That $4 million would have given him 2.67 million shares ($1.50/share). NOW SIT DOWN FOR THIS! Split adjusted, that would be 342 million shares today assuming he never sold, which he rarely does anyway. Yes, that's right; 342 million shares valued at roughly $50 BILLION based on friday's closing price.(He'd still be #1).But he didn't invest in INTEL, or any technology stock because he "DOESN'T UNDERSTAND THEM." I don't know about you, but I would have to call him an IDIOT, after reading that. I think he gets too much credit! He is powerful nonetheless, look how the market reacted to the rumor that he was taking a stake in NIKE last month. Or how they reacted when he sold some of his Wells Fargo or McDonald's stock. As if he is a god, like oh no, Buffet is selling, so I better sell too. I am amazed he hasn't sold any of his 200 million shares of Coke! Talk about overvalued. $71/share. OH wait, just came across my computer screen, NEWS FLASH!!!!!! Warren Buffet is taking a stake in Oakley due to Michael Jordan's endorsement! Just kidding, come on people, laugh, don't get pissed off at a little humor, but I have to agree that Jordan doesn't have much to do with the stock price. Take this as a perfect example; On Friday June 13th, the Chicago Bulls, led by Oakley endorsed Michael Jordan won their 5th NBA title. That day, prior to the game of course, Oakley stock closed at 12 1/2. Monday, Jordan, Pippen and Rodman, were all wearing Oakley's at the well publicized championship celebration. Oakley stock closed down 1/2 at 12. Tuesday (12), Wednesday(12 1/8), Thursday (12), and Friday (12 3/8). Did it take until the following Tuesday the 24th of June (when OO popped to 13 5/8) for the Jordan lovers to buy Oakley stock because they saw him wearing the shades. The answer is NO. Yes, I do believe that some people may buy a stock because of an endorsement, witness the jump (albeit temporary much of the time) in Nike and American Express due to Tiger Woods. However, I postulate that this is likely a mom and pop type of small investor buying 100, 200 or maybe 300-500 shares. Certainly not the type of buying that causes a stock to move big! Food for thought. Let's see how Barron's article is interpreted by tomorrow's trading. Will be interesting. My guess is that the stock will either go up or down. Another laugh please. Good Luck and Regards, Jeff............ |
