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To: Kirk © who wrote (14771)	7/14/2001 4:09:09 PM
From: Skeeter Bug	Respond to of 42834

>>Buffett did well buying the chocolate company and I did well with Msft. I'll wager my return on investment far outstripped his<< kirk, when you create your first BILLION investing then you can wear mr buffett's left sock ;-) yeah, and he didn't need one stock during the biggest stock market bubble in the history of the world to do it ;-) accounting is fundamental to investing. it isn't like picking a bad stock here and there. buffett isn't making a mistake. he understands well that two identical business with identical operating results can now report vastly different results. pete calls this difference a "bonanza" b/c he knows the end result. reported numbers are higher and stock prices are higher, all else being equal. a model that is supposed to model operating results that doesn't model identical operating results in the same way is not a very good model, by definition. sometimes, folks overlook this fact b/c a "bonanza" is hard to turn down. should the model care if people are paid with $5 bills or $10 bills? should my earnings double b/c i pay my employees with $100 bills? nor should the model care if i pay in cash or options for identical businesses with the exact same results. this is irrational. financial statements are not supposed to be impacted by how you pay people ($5 bill, $10 bills, cash, check, stock, assets, rent, whatever). they are supposed to be impacted by how the business operated. this is not the case now and msft leverages this multi-billion dollar loophole to the hilt. so does csco, that is why you pay more income tax than what used to be a $500 billion dollar company. msft plays it well. they are acting in their self interest to manipulate their stock price higher. what should SHOCK you is amount of INTEGRITY mr buffett shows by ACTING AGAINST HIS OWN FINANCIAL SELF INTEREST. believe me, when you act against your own self interest, to the tune of $100s of millions of dollars and you are smart as buffett is, you have spent plenty of time thinking through the issue. how long would you consider an issue that would allow you to goose your wealth a couple $100 million, WITHOUT CHANGING A THING ABOUT YOUR BUSINESS OPERATIONS (think about what i just said)? its easy money, kirk. buffett said no b/c he understands accounting gimmicks aren't the name of the game, rather business performance is and a couple $100 million marginal dollars isn't enough for him to sell his integrity or justify it away. buffett has the integrity no to mislead people into doing what they otherwise would not do. there is no mistake. there is only a shining example of a decent human being only wanting to to communicate the truth to people he respects - his shareholders. buffett is not mistaken, he is profound.

To: Kirk © who wrote (14771)	7/14/2001 4:10:03 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 42834

>>Buffett did well buying the chocolate company and I did well with Msft. I'll wager my return on investment far outstripped his<< kirk, when you create your first BILLION investing then you can wear mr buffett's left sock ;-) yeah, and he didn't need one stock during the biggest stock market bubble in the history of the world to do it ;-) however, he did need a lot of time and ran into a lot of bull and bear markets, so you still have time ;-) accounting is fundamental to investing. it isn't like picking a bad stock here and there. buffett isn't making a mistake. he understands well that two identical business with identical operating results can now report vastly different results. pete calls this difference a "bonanza" b/c he knows the end result. reported numbers are higher and stock prices are higher, all else being equal. a model that is supposed to model operating results that doesn't model identical operating results in the same way is not a very good model, by definition. sometimes, folks overlook this fact b/c a "bonanza" is hard to turn down. should the model care if people are paid with $5 bills or $10 bills? should my earnings double b/c i pay my employees with $100 bills? nor should the model care if i pay in cash or options for identical businesses with the exact same results. this is irrational. financial statements are not supposed to be impacted by how you pay people ($5 bill, $10 bills, cash, check, stock, assets, rent, whatever). they are supposed to be impacted by how the business operated. this is not the case now and msft leverages this multi-billion dollar loophole to the hilt. so does csco, that is why you pay more income tax than what used to be a $500 billion dollar company. msft plays it well. they are acting in their self interest to manipulate their stock price higher. what should SHOCK you is amount of INTEGRITY mr buffett shows by ACTING AGAINST HIS OWN FINANCIAL SELF INTEREST. believe me, when you act against your own self interest, to the tune of $100s of millions of dollars and you are smart as buffett is, you have spent plenty of time thinking through the issue. how long would you consider an issue that would allow you to goose your wealth a couple $100 million, WITHOUT CHANGING A THING ABOUT YOUR BUSINESS OPERATIONS (think about what i just said)? its easy money, kirk. buffett said no b/c he understands accounting gimmicks aren't the name of the game, rather business performance is and a couple $100 million marginal dollars isn't enough for him to sell his integrity or justify it away. buffett has the integrity no to mislead people into doing what they otherwise would not do. there is no mistake. there is only a shining example of a decent human being only wanting to to communicate the truth to people he respects - his shareholders. buffett is not mistaken, he is profound.