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

To: Shane M who wrote (8117)	9/1/1999 1:50:00 AM
From: Michael Burry	Read Replies (2) \| Respond to of 78821

"It's almost like a company with _Buffettology_ chararacteristics that is cheap enough to pass on a valuation basis has some bad momentum/bad news leaking out - but not yet fully priced into the stock. " Shane, my thoughts exactly. My feeling is that the market has already figured out Buffett's ways. They've been analyzed to death. And the obvious Buffett companies have been accorded to the proper valuation. It will be difficult for Buffett, indeed...But then, it is this multiple expansion in Buffett companies that got him his return to date. Being contrarian above all else has been my number one most successful principle. The second principle is knowing when to fold on a contrarian play. The third is not being afraid of tech stocks. That said, I bought Waste Management finally today, at 5/16 above its yearly lows. Looking heavily at the retailers (got started with Ross, but also ANF, BEBE). This time of year, it's a gut check. When to buy, when to sell in the context of looming tax sales. Thinking of buying Old Republic (ORI), an insurer with a PE of 6 and a nice balance sheet, 3+% dividend. Got any insight there, Shane? And no, not giving up on FIC. Just waiting for it to stabilize. That was some absolutely huge support it broke through, and there's really no guessing where it will find its next base. Congrats on waiting. Mike

To: Shane M who wrote (8117)	9/1/1999 7:45:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78821

re: TOY, FTL, FIC ORI Adding to my position in Toys-R-Us. Stock dropping below book value, and psr is at a relative low. May take a year or two for management to get themselves together. I've been in and out of this stock since '95, and I think I might be able to once again hold on to this one for the recovery. Fruit of the Loom. Looks pretty despised on Wall Street. Stock is now below book value and selling at a low (imo) psr. Price itself is at a multiyear low. Another one which might take a year or so to work out. But as long as people wear underwear, I've still got a chance. Adding to my losing position. Fair Isaac. Starting an initial position today. Attractive multiple (imo) given past growth rate. Old Republic (ORI). Pretty easy to spot this one since it's on the new lows list almost every day. I'm still thinking about it. Company has been around a long time. Book value steadily increasing, and as mentioned, stock now below book. Nice low pe. Negatives for me are sluggish management (according to Yahoo), and, I suspect, an investor concern about their exposure to severe hurricane season we seem to be having. fwiw. Paul Senior