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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (714)	9/1/1998 7:59:00 PM
From: cfimx	Read Replies (3) \| Respond to of 1722

Buffet would have done this deal if his stock was at 50,000-provided he got at least as much intrinsic value as he gave up. It has little to do with what price Berkshire is trading at. brka trades as often and as close to its real value as any stock on the big board-although it happened to be well above intinsic value for a spell due to buffetmania. Buffet has been trading shares of brka for equity for a number of years now. But he much prefers to do cash deals and probably would have here but grn shareholders no doubt wanted brka shares. What could we say about his market view if this were instead a cash deal, done at the same moment? This was an extremely astute maneuver from WEB. He is effectively raising a ton of investable money without having to sell any of his overpriced holdings-stocks he wants to keep forever anyway. This transaction doesn't signal Berkshire's overvaluation. It does, however, tell me that Buffet believes there will be plenty of values created in the coming years. And he wants more investable cash on hand to take advantage of them.

To: Freedom Fighter who wrote (714)	9/2/1998 10:12:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

<< I'm not sure I agree with you that debate on valuation has been between Abby and Byron. (If I understood you correctly) Both have been very bullish throughout most of the recent past. >> What Bary reported was: "Wien notes that his model that measures the relative appeal of stocks and bonds showed that stocks were undervalued at Friday's [9/21/98] lows, marking the first such occurrence in recent years." See: Message 5627420 << It's the 27 Yankees vs. a couple of salaried analysts ... >> Okay. Try not to go ballistic over what I'm about to say. We're just talking here. Sometines new perspectives come from informally exchanging ideas. Perhaps the point that Cohen was making, and that Wien took seriously, was that the 27 Yankees would not be able to beat the 98 Yankees. So, if the 27 Yankees are now leaving the field, perhaps its because they're at the age of retirement. But, what Graham understood, and many commentators who have been very successful themselves do not seem to appreciate, is that most of us do not have the gifts to play for the Yankess of the late 60's and early 70's, much less the greatest teams of all times. Thus, most of us are likely to be better off following a mechanical buying system, rather than waiting for everyone else to be in a state of despair, and assuming that we will be immune to the pessimism that is affecting everyone else.