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

To: James Clarke who wrote (200)	6/21/1998 4:53:00 PM
From: Gary105	Respond to of 4691

Jim, hope you are right about BRK so I can add more on dips, but somehow I believe it will be perceived in same way as TRV/CCI merger. Personally, I think biggest risk of merger is reinsurance business and how it will be affected by global warming. Gary

To: James Clarke who wrote (200)	6/21/1998 8:28:00 PM
From: Lars	Read Replies (1) \| Respond to of 4691

James Bingo! Excellent point. I think the other interesting point is Buffett's point on market valuation during recent interviews. He keeps referring to ROE. If you read through this he is saying the market is overvalued. He talked about this at the annual meeting. It is mathematically impossible for 20% increases ad infinitum. I think this shows more of his brilliance. It appears as though he is saying that Mr. Market is extremely happy at this juncture. Great post on your part. Lars

To: James Clarke who wrote (200)	6/22/1998 11:00:00 AM
From: bananawind	Respond to of 4691

James, Not to disagree with your point, but this is not the first BRK acquisition involving stock. I believe the Inflight Safety deal was the first, and that was, what, two years ago? More interesting to me in the GenRe deal is the strategic importance. For quite some time WB has been grousing about all the capital sloshing around in the reinsurance business and how it was hurting pricing. In one stroke he takes out one of the industry's biggest players, rationalizes its pricing, and makes sure that it has only enough capital to write profitable business. Pretty sharp. -JLF