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

To: Shane M who wrote (209)	6/26/1998 4:15:00 PM
From: Cali	Read Replies (1) \| Respond to of 4691

Shane, I am familiar with all of these companies. A year and a half ago I sold my computer parts company, so I have worked directly or indirectly with all of them. AutoZone a broker friend of my pointed it out, but in all honesty I have not taken a look at any of them. I am in the process of building a spreadsheet based on the info out of the book "The Warren Buffett Way". when I complete this model, I will take a closer look at these companies. Shane, have you ever considered looking at the companies that Brk and subs own. If you consider brk to be overvalued, maybe their is better value in buying individual companies that are undervalued. What do you think? regards, Cali

To: Shane M who wrote (209)	6/27/1998 6:05:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 4691

I own Nike as a Buffett play, but I think the valuation could be cheaper given the short term fundamentals. I think this is about the best we're going to do in a large company in today's market. Earnings come out on Tuesday. Probably worth a look to see what happens after earnings. I would call the low 40s a buy point (and it will probably get there again before it goes to 80), but it takes more research than you think to understand why. Researching Nike is fun, though. As a first step, read the book "Just Do It" and ask yourself if history is repeating itself for the third or fourth time. If the answer to that question is yes, you will buy the stock without hesitation. I can't tell you much more than that - this is not a stock you want to buy on a tip, because if you don't understand exactly why you own it you will be scared out of your mind. Jim