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

To: Shane M who wrote (2687)	11/18/2000 4:30:37 PM
From: Paul Senior	Read Replies (1) \| Respond to of 4690

Shane, regarding the long term impact on SHW posed by Home Depot/Lowes: I'd say that since SHW has dealt successfully with the long term continuation of the tough competitive environment of the paint business - slow growth, iffy(?) paint brand loyalty in the DIY market (where perhaps Home Depot reputation and price and/or convenience play a significant role)- SHW will deal successfully with Home Depot competition also. SHW has faced many challenges before -- I don't see that their now not being in Home Depot is a knockout blow to SHW's multi decade record of producing increasing earnings. My bet's that SHW stock price is below the intrinsic value of the company. As I learn more about SHW - I might get a better understanding of the significance I should attach to Home Depot/Lowes. I don't know how much business SHW did with HD or the circumstances of why they are not in HD now. To me, at this point, it's an "alert", but not at all a reason to prevent taking an initial position.

To: Shane M who wrote (2687)	11/24/2000 4:04:34 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 4690

HD is a retailer of paint & decorating products and so is SHW [bout 2500 stores]..thus precluding a supplier relationship for SHW. [Recent Buffett buy Shaw bought a bunch of retailers and HD's response was to throw SHAW carpet out of the stores; SHAW sold the retailers at a big loss and went hat in hand to HD seeking forgiveness]. SHW does do some wholesale biz with hardware stores and other paint retailers, but these are losing market share to HD. Pauls right about SHW's being able to grow in the face of competition, but the HD Lowes duopoly definitely represents a substantial headwind. Frankly, I'd be more worried about the lead paint issue after watching the asbestos producers being dismantled over a product not sold for 30 years...Look for Armstrong [The flooring co] to file within days joining Owens Corning and several others. This lawsuit thing has gotten severely out of hand...and now that the lawyers are selecting presidents for us.....