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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.94

+1.1%

Nov 28 9:30 AM EST

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To: Lizzie Tudor who wrote (63818)	5/5/2003 12:41:20 AM
From: Ryan Hess	Read Replies (3) of 77400

Lizzie, You need to study Buffett a little more or read some more of his annual reports. Then you would learn about the decisions the managers of Geico make regarding market share and advertising spending. Buffett and his managers will employ capital to grow a business as long as the capital outlay is rational and the advertising dollars earn something greater than the cost of capital or other alternatives for the cash. At some point in a mature industry there is a point where you don't want to spend incremental advertising dollars or lower prices to gain market share. To accuse Buffett of anything but long-term profit maximization is ludicrous. Berkshire has the balance sheet to do it, and they're doing it in spades. Just look at Executive Jet. And by the way, if you don't think Berkshire's subsidiary companies employees are making out, you might consider the cash bonus compensation of Geico's employees of late. Ryan

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