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.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (2259)	11/14/2014 11:06:53 PM
From: Kirk ©	Read Replies (1) \| Respond to of 26786

Great discussion topic! What does Buffett see? This is what someone posted on Faceplant about it. Brian Foote? Value Investing Buffett doesn't necesarily look for good price first and quality second. He looks for future earning power first and the price of it secondarily. This is what Munger convinced him to do and where he veered from Graham. Why did Buffett trade PG for Duracell? Two reasons. He has been looking to get out of PG because even though he likes brand power, brand power for non edible household items will be less valuable in the future than they have been in the past. Store brands will steal market share. But he still likes strong edible brands because the consumer is taking more of a risk when he puts it into his body. Why does he like Duracell? Because Munger believes we will go directly to the sun for energy and the future will be battery packed. Price is second. Utilities maybe on the way out if we can buy our own power plants to convert NG to electricity with fuel cells to supplement what we capture from the sun on the roof and store in batteries. Fascinating to see how Buffett is positioning his holdings for the future Removing consumer staples Buying Railroads Utilities Batteries Anyone have any good ideas on utilities with low debt ratios...??? I'm sure utilities will be needed in big cities where the population density is too high for solar to meet all needs but big buildings may find it practical to buy their own fuel cells... Is he thinking that far ahead or maybe utilities will still be needed to broker the power on the grid plus deliver the NG for the fuel cells... Railroads are obvious, a friend told me he bought BRK to fund his kid's education back in the 1990s when they were young and said the railroads were a big reason he liked BRKA. His kids are in college and he's paying for it with cash flow but his BRK stocks is up a ton... not as much as LRCX but it wasn't as risky back then when LRCX was my top pick.