Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Wyätt Gwyön who wrote (134306)	6/3/2004 11:01:55 PM
From: Jim Mullens	Read Replies (2) \| Respond to of 152472

Darffot, Re: W Buffett and reply to my post of Mar 13. Took a while to get back to me on that one- things must keeping you fairly busy? 1. Re: “overpriced shares eventually come back to earth.”<<<<<<<<<< I recall reading sometime back (several years) that WB made a statement that BRKA was “overpriced” and he didn’t advise buying at that time. April 99- $76, 400 June 04- $89,750 17% return in 5 years (with no dividend income) is nothing to write home about IMO. During that period BRKA dipped down to $44,000, a 43% loss, also nothing to be real proud about either IMO. Today, Yahoo/First Call reports BRKA with a PE of 26 vs the S&P at 17.1 (52% premium to the S&P). A long term growth rate is not provided, but assuming the same growth as the S&P of 10.8%, BRKA has a PEG of 2.4 I wonder if WB thinks BRKA is still overvalued today? Is BRKA about to “come back to earth" Again? 2. Re: , “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...”<<<<<< I’m not sure what WB does with his retained earnings cash horde, speculate in silver, foreign currencies, ????? Qualcomm actually used its retained earnings to develop something very useful for the world’s masses- Something called CDMA that enables wireless communication / high speed internet connectivity for folks around the globe. OTOH, WB bought into well established companies such as Coke and Dairy Queen which although very tasty, have not advanced civilization that much (perhaps even set it back a bit with obesity / unhealthy foods). Now, who has contributed more to a. the advancement of civilization / humanity- Dr. IMJ and the folks at Qualcomm or WB? b. Their shareholders wealth over the last 5 years- Dr. IMJ and the folks at Qualcomm or WB? 3. WB’s investing techniques do not appear to have done well lately (5 years). Perhaps for his investing methods to succeed, he needs to purchase ordinary companies at very distressful times. In other words, perhaps WB’s at his best when other poor souls have lost their shirts in the market place and thrown in the towel. 4. WB also has found success in buying insurance companies, where he can jack up the premiums to cover any losses and play hard-nosed with anyone trying to collect on a loss.