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

To: Michael Burry who wrote (229)	8/3/1998 12:08:00 PM
From: Axel Gunderson	Respond to of 4691

Mike: I agree with all you say about the books. I especially agree with your perspective on Fisher. Perhaps I am pre-disposed to think this, since I am most influenced by Fisher, but I get the impression that Buffett invests much more in the spirit of Fisher than of Graham, and that his homage of Graham stems from personal affection. Not that I would dispute that Graham did influence him largely. I am surprised that you wrote that Hagstrom's model seems too simple. I would think that the model Mary wrote up would seem to be far simpler. I also think, after reading the Berkshire reports, that Hagstrom's model is more in tune with the philosophies that Buffett espouses. What I do wonder about is the use of traditional ROE and profit margin as screens. Given Buffett's apparent disdain for accrual earnings, and being as he is taking the trouble to calculate owner's earnings, I would guess that he uses a margin and a return on capital based upon those instead. Axel