A very insightful post, though I would disagree with the main point - I think the great one DOES like to see steadily rising book value. But your point is more than that - I don't think that is what you were saying. Clearly Warren Buffett is smart enough to be able to see through accounting numbers in the way your post illustrated. I like to think I am too. The idea of Buffett using computer screens is absolutely laughable. Which is the big flaw in the Buffetology book - if you don't know what you are doing, you are going to make big mistakes no matter whose formula you are using, because if the person is bright enough to make $30 billion, it is highly unlikely that they use a formula that rigidly.
What is missing at Boeing is management that Warren Buffett would trust. From all I can see, these guys range from inept to borderline dishonest. The reason I bought the stock is that I think there is a lot of pressure from shareholders to fire them. The Board meets on December 14th. I think there is a good shot that Condit, the CEO, gets fired. But that's not enough, because the guy who would take his place may be just as bad. I think the stock would pop a couple points on that news. But the homerun would be if they fire the whole group and bring in a crew from GE.
I am very comfortable with a feeler position in this stock. I still think there is a good chance I get the shot to fill the position at 27-28, so if you're looking to buy the stock I don't think you're missing the boat if it runs a little bit now. A price in the 20s may come on a market break, or it may come because the bad news is not all out yet. I have NOT put all my chips on the table.
And as for whether Boeing is a Buffett stock, I think I come down to this. "Close enough."
Jim
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