Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (1633)	6/30/1999 3:09:00 AM
From: Michael & B.Anne	Read Replies (1) \| Respond to of 4691

Hi James ... 1) Re: The Business Week article. If I had seen the story under the banner of People Magazine I woulda believed it -- especially the self satisfaction in the scoop regarding the current state of the Buffett - Munger relationship and his pretension regarding concerns of Buffett's ability to let go - change the names to Phillip and Lady Di and the concern for the House of Windsor and the story would have not have required a major rewrite. I can read it now "while riding with the Queen in her private jet I had the unique opportunity to ... " 2) I think you are right regarding BRK being an unpopular stock for institutional investors but, the world always requires something new -- I mean there is a lot of air time to fill on CNBC and newsletters and analysts. And whatever the new trend, like changes in the fashion industry, it will have two "for sure" aspects a) whatever is chosen as neat will be something different than you currently hold b) and who knew it was really the thing that was considered in advisable to hold yesterday. I can see it now "a stock that reaffirms basic American values." Sigh . 3) BTW really liked your post -- I am with you in that Buffett may have been brilliant in using inflated stock to buy GenRe. In one move he a) decreased percentage impact of questionable holdings - greatly aided by over valuation of these holdings to b) GREATLY INCREASE usable DEPLOYABLE ASSETS of the company by more than 3 times without any impacting underlying operating structure of BRK. Even better, improved our position in that c) we got a very central powerful new component of our emerging turbo charged insurance engine. Again, Who knew ? :) 4) Finally somewhat out of thread. Just saw a super "Front Line" on the history of the Asian Meltdown and now am even more certain about MBK .. but not yet. The Asians are not going to develop another financial relationship with the US - the money interests and governments there do not trust us and the people have bought into story (seems half right to me) that we are the reason they lost their jobs and now scour garbage dumps for food. They think the US Government set them up and then our money men burned them and then we protected our money interests via the IMF coming in and saying "if you want a loan from us you gotta make sure you pay off the large interest bearing loans to those/us guys that got you into this trouble in the first place. If that means laying off people and raising interest rates that will put your government and financial interests under stress .. we'll it will be good for you." Japan is really being somewhat clever in using this condition -> perception of reality and very cheap money. With a story that goes sorta like ... 1) we understanding, we are similar and we (you/us) would be better served* to stick together in the future. And to start that demonstrate they type of relationship (understanding for your culture and long term view), 2)we can provide money now under very good terms (some to governments so good they neither require interest or near term repayment and * unlike those foreigners (we Asians have always had reason to distrust - for the same reasons then as now) we will not set you up and then put a hole in your/our balloon later. More and more, I am becoming sure as I can (discussion group protocol requires I must state "IMO") that Japan is going to be the economic hub of Asia - not the US ... and MBK (perhaps Sumitomo) are unique (only Money Center winners in the great Japanese Bank shoot out) in having and currently being able to use the assets and resources required. But not just yet - the third world countries (re branded emerging markets) have not retooled and re covered enough. And Japan (LDP)still has such harsh leashes on their banks forcing them to support a structured economy poorly organized based on patronage - farmers and crooks as major constituents. Finally, the only US company that really understands this and is positioning to win big in Asia is GE Capital. as always regards