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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%Dec 5 9:30 AM EST
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To: Amy J who wrote (166789)6/21/2002 4:15:44 PM
From: BelowTheCrowd  Read Replies (1) of 186894
 
a) Buffett has never said that the fraud at Enron and the others was specifically caused by options. He has made much more general statements about improper compensation and poor corporate governance. He has certainly indicated that options are a piece of the puzzle, and has stated there were many other problems too.

b) Buffet points out that stock performance is generally out of the control of any individual employee and often out of the control of the company as well, as it depends on the mood of capital markets. As such he does question how they would motivate employees to do their particular jobs. (He would point out that company performance and stock performance often diverge, often for extended periods of time.)

c) Buffett has stated often that he doesn't understand what factors create a long-term compeitive advantage in technology markets, which tend to be disruptive in nature. As such he does not invest in them.
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