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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (73467)	3/28/2001 7:02:42 PM
From: Don Green	Respond to of 99985

Buffett Remains Bearish, Generally, And Still Cool to Technology Shares A WSJ.COM News Roundup March 28, 2001 LONDON -- Warren Buffett said many U.S. stocks are still overvalued and must decline further before he considers them a good investment. The U.S. is suffering an economic downturn, the Berkshire Hathaway Inc. chairman said Tuesday, but he stopped short of saying the country is in a recession. "We're in a slowdown, that's for sure," he told reporters . Mr. Buffett said he had little interest in U.S. stocks at present. "We're not doing a lot of buying. We're buying more planes than we are stocks," he said. Speaking at a news conference to announce the delivery of 50 new aircraft to Executive Jet Inc., a Berkshire unit, Mr. Buffett said he would start buying shares again "when businesses sell for less in the market than they're worth." Earlier this month Berkshire reported that its net income more than doubled in 2000. The company's strong performance allowed Mr. Buffett to express a sense of vindication for his refusal to jump aboard the tech-sector bandwagon. In the previous year Berkshire, with its low-tech investing strategy, turned in its worst performance ever. On Tuesday Mr. Buffett reiterated his aversion to tech stocks, saying he hasn't bought any shares in the sector despite the Nasdaq Composite Index's plunge over the past year. He added, however, that it wasn't "inconceivable" for him to change his mind and invest in a telecommunications or dot-com stock. "I'd have to understand it, and it would have to be selling for less than it's worth. I don't see either of those things happening, but I don't rule anything out," he said. In addition, he said Federal Reserve Chairman Alan Greenspan has done "a terrific job" in managing the economy. On Tuesday, Mr. Buffett stopped in London as part of a three-day trip aimed at boosting aircraft sales in Europe. The chairman said Berkshire's Executive Jet unit has performed well lately, unlike Berkshire's retail-jewelry and furniture businesses, which have seen declining sales in recent months. Executive Jet will use the Cessna aircraft for its NetJets fractional-ownership program, in which several owners buy a plane on a time-share basis. Executive Jet Chief Executive Richard Santulli said fractional sales of executive jets have been strong lately, in part because some executives are pinching pennies and holding off on buying an entire aircraft when just a share in a plane will do.