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

To: Michael Burry who wrote (207)	6/25/1998 1:10:00 PM
From: Cali	Read Replies (1) \| Respond to of 4691

Good Post, I agree with your analysis of brk being over valued. I have been looking for small to mid-cap companies that would be a buffet buy, but have not found any. If you or any one else have any ideas and are willing to share them, I would be interested in taking a look. regards Cali

To: Michael Burry who wrote (207)	6/27/1998 5:59:00 PM
From: James Clarke	Respond to of 4691

Agree completely with Michael. Trying to buy Berkshire shares now at a reasonable price is a waste of time. Too many institutions who used to laugh at Buffett are now buying the stock without regard to value. Given the limited float (most of his shareholders are long term, though I think the price move in the stock is telling me that that is changing), if institutions buy, the price goes up big. Ironic that BRK has become a momentum stock. It will be very interesting to me what Buffett does with these billions and billions of dollars of new float. I understand it is invested in bonds now. Will he make new purchases at the current market valuation? Or does this deal just give him a warchest to jump in when the gettin's good. I would bet on the latter. This market is extremely pricy. The most expensive stocks are the "Buffett stocks" because everybody is looking at them right now. This too will pass. When energy stocks are once again the fad, we'll be back in business. Until then, the opportunities are few and far between. I agree with Mike, keep your eyes open for Buffett stocks at reasonable prices, but understand one thing. There are hundreds of institutional investors picking over these very same stocks. If you think you are getting a real bargain in a large-cap stock, do your analysis again asking yourself - do I know something everybody else doesn't. Jim