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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (28197)	9/24/2007 11:55:33 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78673

To me, WSC at current price to book value doesn't look like such a value as to justify a supersize position. I see where book value grows in most years, but in scanning numbers, growth in book value (roe), looks like under 5% in most years. Way I look at it, stock trades sometimes higher than current p/bv; sometimes lower. (looking at avg. p/bk for past ten years). Crapshoot short term imo if someone is just trading it. Over time, you get Munger and a rising stock price. That stock price rise though doesn't look its been so great over the past few years. Maybe from $300 to $450 and back under $400 in four plus years. It's okay, but nothing I see to change that the mediocre return. Lousy revenue growth now per Yahoo; joke dividend. Summary: not enough positives to justify a supersize position. All jmo. I've been wrong many, many times.

To: Jurgis Bekepuris who wrote (28197)	9/24/2007 8:35:54 PM
From: James Clarke	Read Replies (2) \| Respond to of 78673

I own a lot of Berkshire. I've looked at WSC in the past but never found it demonstrably cheap. Is it cheaper than Berkshire? If so can you explain what you're seeing there, and if not, why bother with it when you can own Berkshire?

To: Jurgis Bekepuris who wrote (28197)	9/27/2007 10:56:18 AM
From: Jurgis Bekepuris	Respond to of 78673

Sold the rest of HRAY. As I told before, I am not very good at net-net plays or net-cash plays. I made money both on KONG and HRAY (13% and 22% respectively), but I am sure I left a lot on the table. KONG is already 20% higher than where I sold it. :/ Differently from Buffettology companies that I can hold for years without worry, with net-nets and net-cash-nets I get worried and impatient and don't know for how big bounce to wait. That's why I asked opinions whether to sell them at 2xbook or 2xcash or what. ;) Both KONG and HRAY are now trading at >2 x cash. They may still be buys if they can get back to earning decent money, but the net-cash plays they are not anymore.