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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: redfrecknj who wrote (62745)	6/5/2006 10:19:45 AM
From: ild	Read Replies (1) \| Respond to of 110194

Global: Stagflation Scare? Stephen S. Roach (New York) morganstanley.com

To: redfrecknj who wrote (62745)	6/5/2006 12:15:27 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Reply from Eric on the FOOL <<<Hussman vs Buffett, and compared to the S&P 500. Message 22513341; Mish, You didn't comment, so I wonder if you picked up on the problem with this chart. It is not an apples-to-apples comparison, and carries almost no meaninful information for that reason. Hussman, as a mutual fund, has to make capital gains distributions, or bear the tax consequences. These distributions are clearly marked in the chart as "dividends" paid. The chart is not redrawn to reflect the reinvestment of "dividends", though most holders and IRA owners certainly do that; nor is the basis of the fund decreased to offset the distribution. In other words the price of HSGFX does not directly reflect the value of the fund over time. The S&P return may or may not include its 2%/yr dividend, but BRK prides itself on never paying distributions, so any trading profits and income from the various component businesses are still in the stock price. Husman has done better than BRK with distributions factored back in. Eric