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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (6977)	7/20/1999 7:04:00 AM
From: w0z	Respond to of 15132

What occurs to me is that his type of stock usually has a much lower p/e than techs No wonder he's nervous! Has he looked at Coke lately? Here's their last 6 years of revenue and P/E ratios (all data from wsrn.com Revenue($M) 18813.0 18868.0 18546.0 18018.0 16172.0 13957.0 P/E 47.2 40.7 38.1 31.7 26.3 26.9 (sorry...SI's spacing format!) With a compound growth of just 6% since 1993 (actually flat the past 4 years) it must be hard for Buffet to justify KO being a value stock at a P/E of 49.4 (based on latest price and last 12 months' earnings.) And I'm nervous because HWP is at a P/E of 38!!?

To: JF Quinnelly who wrote (6977)	7/20/1999 9:27:00 AM
From: Ian@SI	Read Replies (2) \| Respond to of 15132

JF, O'Shaugnessy of What Really Works On Wall Street fame is on CNBC this morning. He just observed that there are even more low PSR stocks (PSR < 1) this year than last. ... by a fairly wide margin. I believe he also mentioned that they're primarily small and mid cap stocks. which is another problem Buffett has. He's been so successful, that he can only deal in the largest of the large cap stocks. Anything else is just too insignificant given the amount of money he has to place. So yes, it's quite possible that nothing that Buffett is willing or able to look at represents good value. That isn't necessarily a meaningful statement for anybody reading this thread. Speaking for myself, there's more value out there than I have money to take advantage of. FWIW, Ian.