I think an investor invests best in what they understand best. I cannot argue with the questions you raise, but wherever you go in the world, there's Coke. And by law you have to have Car Insurance.
I myself have spent the last 8-10 months studying 30-35 Oil Sector Companies, their finances, equipment, technology, and what drilling contract information i could find.
I see companies with 800 million in cash with little debt, i see a company with 700 million in debt and a small amount of cash.
NONE of that matters, it is all tied to the price of a BBL of Oil, PERIOD.
What i am saying is, yes, in my opinion, WEB's philosophy on investing may be a bit 'behind the times', but i sure wouldn't say it's outdated by any means. I can't predict where the market is going, and i am not smart enough to try and Outwit WEB and CM.
Sure, there are a lot of 'hindsight no-brainers' out there, like AOL, ATHM and EMC, but can you explain the market cap value of Amazon or Yahoo ! i sure can't. Did anybody predict Iomega and Compaq to fall on there collective butts ?? |
