Dipy,
Please understand that in my opinion, SGI is about the farthest thing from a value stock as is out there. Your comment about "sleeping" on SGI for a little while, hoping that it goes up, was what made me raise the question of whether you though it was a value stock.
Your talk of "long-term growth investor" is quite interesting. I have yet to hear a fund manager refer to Buffet as that; however, the definition of all of these categories is somewhat up for individual interpretation. Could it be that you are missing the whole point of value investing which is whether a stock is under-value. My comment on healthy management and vision are just a couple of many typical characteristics required in the assessment of a company's future value and are definitely in question with regard to SGI.
As for the consumer franchise stocks comment, I have a number of comments but will only respond with one. First and foremost, Buffet's fundamental tenet is that he must understand every aspect of the business and market before he will invest. Buffet still does not even regularly use a PC let alone know anything about the high-tech world! There is no way that he would invest in a stock that solely depended on high technology. Buffet understands consumer products and mass consumer markets. Therefore, he invests in those industries (Coke, Gillette, etc.). If Buffet were a computer nerd and followed a similar investment strategy, he would have invested in MSFT, CPQ, and ORCL.
Sincerely,
The Commish |
