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

To: James Clarke who wrote (4322)	6/19/1998 10:29:00 PM
From: Scott Mc	Read Replies (1) \| Respond to of 78704

Will need a new index, the WBuffet500.. Warren Buffett, Chairman of Berkshire, commented: ''The merger will bring more than $80,000 of investments to Berkshire for each Class A or Class A-equivalent share issued. That's beneficial, being nearly double the existing level, or, put another way, the merger brings more than $24 billion of additional investments to Berkshire. Noticed some value plays dropping into the buying zone.. 1. HBI (I sold at $9.875 approx 1 month ago) 2. TDW (I cant believe how cheap and cheaper it gets) 3. PSO (Jim's pick, probably can't get volume at this price) Scott Where will WB put all his money? More Silver, Gold?

To: James Clarke who wrote (4322)	6/20/1998 2:16:00 AM
From: Jurgis Bekepuris	Respond to of 78704

James, Buffett did it again. Lessons? I said in February: -------------------------------------- James, One more way to look at the valuation of BRK is to look at its market cap. Currently it's $64B. Compare that to KO $170B, MSFT $190B, GE $245B and GM $45B. This puts a nice upper cap to BRK valuation - it won't be a ten-bagger. Sorry. :-) At $640B it would have a market cap as large as MSFT, KO and GE combined. --------------------------------------------------- As Cramer says: Wrong!!! Almost 2-bagger in less than half year with $120B market cap. But is it worth this price? Not to me. Not when I can buy open ended funds of Whitman, Price, Gabelli for NAV. Buffett is a &$%&%# genius but not at this price. Maybe I'm wrong again, but that's fine with me. ;-) And James is right: --------------------------------------------------- Warren Buffett, Chairman of Berkshire, commented: ''The merger will bring more than $80,000 of investments to Berkshire for each Class A or Class A-equivalent share issued. That's beneficial, being nearly double the existing level, or, put another way, the merger brings more than $24 billion of additional investments to Berkshire. ---------------------------------------------------- Typically Buffett'y move, to be applauded. Buying shares in insurance companies is different from buying insurance companies, different from buying insurance companies for overvalued equity. See Fisher's "Superstocks". Case closed. Good luck Jurgis

To: James Clarke who wrote (4322)	6/20/1998 5:26:00 PM
From: Paul Senior	Respond to of 78704

James: I like your analysis. He buys for cash when his stock is cheap and switches to buying for stock when the stock gets high (too high). Personally, if I were a Gen. Re holder I'd be glad to be in Berkshire, but I'd be somewhat chastised that Gen. Re is being bought by Buffett. Because Buffett says (to me anyway if I were a Gen.Re holder), "I'll manage your float better than your own managers -- move you clowns out of 5% bonds into something more profitable - and of course, being Buffett, I certainly am not going to overpay you for your stock ---although you do get a chance to ride with me in Berkshire paper." I own some insurance companies and I surely wish they would be more agressive in dealing with their float. Of course they are bound by legal requirements as to what they can invest in, but still... as a class, they seem just moat managers-- staid, status quo types whose paramount function is not building shareholder value. Some of my P&C positions have crept up as the overall market has increased and the price/book values have climbed from my purchase price. IMO, these companies almost all need someone to shake them up-- else they will continue to languish. That being said, one company people might look at who are seeking a similar co. to Gen. Re. might be NAC Re (NRC) which perhaps has some of the same financial numbers (but not the size). I do not own, nor do I follow this co - nor do I claim any expertise in evaluating or understanding the insurance industry. Paul