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

To: Moominoid who wrote (2725)	1/16/2001 6:45:39 PM
From: Shane M	Read Replies (1) \| Respond to of 4690

David, I like and use several of the methods of valuation used in the book but agree that it's likely more of value approach is being utilized by Buffett now. FWIW, most of the good companies that qualify under the model mentioned in the book (brand dominance, high ROE, free cashflow) just haven't qualified as buys from a valuation standpoint. I remember the thread looked at Coke, Gillette, and Wrigley as examples a year or two ago and we for the most part agreed that we wouldn't be buyers at that point in time. The market has priced those types of stocks at a premium over the past several years. I haven't rechecked valuations recently, but I recall many of the prime "Buffett" stocks needed to fall so far for a buy that I dropped them from my radar. Some others on the thread may remember the discussion and comment. Shane