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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (82968)	8/15/2000 11:18:17 AM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

Don, >>I have to take the view that if you don't attack my proof, you haven't yet found a chink in it. -g-<< The main reason I didn't elaborate much is that I look at it both ways. We've also covered this ground in the past. (g) I don't think it's a simple as the dilution solution because the actual cash flows change so much depending on the outcome and actions of the company. The GAAP results would also be different if the company gave cash instead. When Warren Buffet bought General Re he substituted a cash compensation plan for the existing options plan. That action lowered GAAP earnings by 50 million (I think that was the number). Was General Re worth some multiple of 50 million less because he did that? I think not. The employees received cash instead of something that could theoretically be sold by the company for 50 million in the market place. That satisfied them. Ultimately, the cash flows in/out/ and dilution vary widely depending on the results. I thinking looking at the whole ball of wax gives you a better idea of the economic reality. Wayne