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To: MeDroogies who wrote (2833)	4/5/2001 2:26:26 PM
From: tradermike_1999	Read Replies (1) \| Respond to of 74559

I don't see that Warren Buffett is a guide to all that is right and proper in investing behavior. I don't mean to suggest that you should make an investment unless Warren Buffett would do it. I do not trade using his methods. I primarily use technical analysis and charts. I wouldn't do a value play unless the chart looked good. Where he ignores the charts and looks at cash flows and valuations. If you look at technical analysis than there are hardly any stocks worth buying as an investment. GE and ORCL have completely broken down and the charts say they have much further to fall. If you use fundamental analysis - Buffet's methods - than you cannot touch these stocks either. GE has a P/E of 31 and cash flows that are rapidly deteriorating. go look at the balance sheet and you'll see what I mean. This is a warning sign that suggests something is wrong with the company. Oracle is also having revenue and earnings problems as Oracle investors found out the other month. My point in bringing up Buffett is this - in order to be a succesful investor you need to have a method of investment that takes into account the fundamentals of the company or the price and volume action of the stock. Simply buying a company because you percieve it is a good company is not a method of investment. It is gambling and will send you into the poor house.

To: MeDroogies who wrote (2833)	4/5/2001 7:50:45 PM
From: Marq Spencer	Read Replies (1) \| Respond to of 74559

MeDroogies, I don't see that Warren Buffett is a guide to all that is right and proper in investing behavior. Certainly, he has a steady hand and a good track record, but that doesn't make him flawless MeDroogies, "good track record" !!! Here's a guy who has averaged 23.6% annual gains for the last 36 years (compared to 11.8% of the S&P500) - that's an awesome and unmatched track record. $10K invested in Berkshire Hathaway at the start would be worth over $20 million today (as opposed to $500K in the S&P). He may not be flawless, but he is a guide to what is right and proper in investing. The fact that he's upfront about his mistakes, that he recognizes them and cuts his losses, that he invests with conviction when he finds something that he believes is right, are all the right ways to invest. - Marq.