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

To: Jurgis Bekepuris who wrote (242)	8/10/1998 1:10:00 AM
From: Shane M	Read Replies (1) \| Respond to of 4691

Thread, I'm extremely guilty of depending on quantitative models, and agree that there's much to be done on the qualitative side to generate Buffett companies. For my purposes I guess I'm not trying to find strictly Buffett companies, but companies with such characteristics. BTW, regarding CATP (Cambridge Tech Partners): I had discarded this company out of hand because of its high PE, but after Jim commented I went back to see what the spreadsheet was using for inputs on this stock. Turns out the minimum PE used was something like 51 and was driving the performance!!! The model I have picks this based on historical PE's, and for most companies this works OK, but clearly this needs a conditional placed on it for situations such as this. I will make a change when I run the figures next month. It's tough for the model to handle high fliers because high growth rates in both BVPS and Rev's make it difficult to extrapolate into the future. Shane