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

To: James Clarke who wrote (2595)	7/9/2000 12:19:35 PM
From: Freedom Fighter	Respond to of 4691

James, Have you read the comments of Bill Miller and looked at his valuation methodology? I'd be curious to see how he does it. While I love Alice Shroeder's work on BRK, (and I'm sure she knows more than I do about the business), there are some aspects of her valuation methodology that I have problems with. In fact, I even have some problems with Warren's ideas about the risk free rate. I understand the rationale of using the risk free rate as common comparison point. However, different businesses sell for different discounts in the market place and you can come up with some really outrageous valuations using the risk free rate. I think there is some merit to looking historical discount rates, required real rates, etc... Wayne