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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mullens who wrote (133363)	3/14/2004 10:38:26 AM
From: Art Bechhoefer	Respond to of 152472

Buffet's comment a year ago that there weren't many bargain priced stocks around has to be seen in the context of what he considers a bargain. He looks for stocks like GEICO, which, back around 1980, had lost so much of its market value that it was selling below book. He looks for a good, well run business with intrinsic value that is not recognized by the investment community at large. He also avoids tech stocks because he admits he doesn't understand technology. If you look at the stocks which really performed well over the past year, most of them were tech stocks, so Buffett is simply revealing that he lacks the expertise to invest in this sector. The sectors he prefers--retail, insurance, newspapers with a monopoly in their trade area, consumer goods like Gillett, etc. had mixed results. Also, if you look at the average PE for the S&P 500 then and now, it still is higher than the historic average, at a time when the rate of earnings growth is considerably lower than the average PE. Not being able to understand the technology sector and recognize bargains gives Buffett a big handicap in investing. On the other hand, he's very honest, which is a big point in his favor nowadays. Art

To: Jim Mullens who wrote (133363)	6/2/2004 2:08:13 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 152472

Jim, it is very funny to see people always denigrating buffett here. it's even funnier to see somebody compare QCOM to a real investor like Buffett. thanks for the laffs.

To: Jim Mullens who wrote (133363)	6/2/2004 2:16:08 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 152472

btw, just looking at the share price isn't the way a real investor would look at it, in Buffett's sense of the word. if share price were all that mattered, Inuts would rule the world. but overpriced shares eventually come back to earth. therefore, the way a real investor thinks about it is to look at the growth of intrinsic value, net of capital additions. in that sense, BRK just blows QCOM out of the water imo. e.g., look at retained earnings. i hope that is not an unfamiliar term here...