Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Clarke who wrote (257)	8/29/1998 7:15:00 PM
From: cfimx	Read Replies (1) \| Respond to of 4691

james, how do you calculate G's buy point to be $30? I would be extremely surprised if it EVER sees $30. If it does, we are in deep doo do. Don't forget that WEB doesn't advocate waiting around for once in a lifetime buying opportunites that may never arrive. He believes one is on safe ground buying a great company at its calculated intrinsic value, or close to it. The further below the better. Once in a while he does get them 30% off or more (74-75). But he doesn't advocate waiting around for these huge discounts to value that happen to show up every 25 years or so. When you compare it to present interest rates, I think we're just about there with G. When he bought NFM, he didn't wait around until RB woke up one morning, and in a total lapse, decided to sell her furniture store for 30% below it's true value. He bought it for what it was WORTH. And she sold it for what it was worth. Time to look for Buffet businesses that are selling at or close to intrinsic value, not wait around and hope that they're suddenly marked down 25%.

To: James Clarke who wrote (257)	8/30/1998 3:58:00 PM
From: Jurgis Bekepuris	Respond to of 4691

James, As I said in another post, I am gathering all Buffett names from S&P guides. I haven't worked through much of the data, so my answer now will be incomplete. Here's the companies that are buys now. They are not major Buffett names: DFS <33, FAST <35, SJK <25, ORCL <25, UST <27. All these companies have "problems". I am mostly attracted to DFS - but it did not drop much - and SJK. Now for the wish list. I would reevaluate G <35, HDI <25, JNJ <60, KO <50, MAT <30, MRK <90, WWY <75. These are ballpark figures and do not mean that I would buy there. I would just rerun the numbers and think hard. :-))) I already own NKE and PEP. Next evaluation at $30 and $25. BTW, usually I avoid debt/equity > 0.5, which excludes some Buffett companies. I did not do much research on AXP and MER. Are you sure financials are the place to be now? Of course, AXP and MER are great franchises (add MWD here + CCI and other banks?), but I'm pretty shaky about the valuations of financial companies. Can you comment? BTW, what do you think about a little arbitrage in these panic times? BTL looked good on Thursday, but I was lucky to catch CIEN-TLAB spread. ;-) Some positive returns to upset the portfolio decline. Of course, your USU play is great too. ;-) Good luck Jurgis