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Technology Stocks : Intel Corporation (INTC)
INTC 46.47-4.5%Jan 30 9:30 AM EST

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To: Road Walker who wrote (25665)7/7/1997 7:01:00 PM
From: Harry Landsiedel   of 186894
 
Re: Cash Flow vs. earnings. Thanx for your post. I use "owner earnings", which is operating earnings plus depreciation minus capital expenditures. (This is basically Buffett's approach.) I wonder what "earnings yield" for S&P500 would be based on cash flow or "owner earnings".

The big insight for me came in Lowenstein's graph. Look what happened in 1987 when 30 year bond yields and earnings yields went in the opposite direction and the two got really out of wack. I don't see this happening now, but if we get a big surprise on the inflation front and a big move by the Fed. Watch out!

HL
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