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To: John Walliker who wrote (34001)11/5/1999 9:35:00 PM
From: Victor Lazlo  Respond to of 93625
 
Well John and Don there's something else too, of course.

Not long ago Buffet bought out an insurance co, largely with securities such as coke and others he held. The insurance co he bought was a big holder of bonds.

So with one stroke, he converted many of his securitites into bonds, without selling the securities and creating selling pressure, and thus also alarming the market, but at the same time reducing his exposure to them, coke included, and acquired another insurance co.

Victor