To: Lars who wrote (907 ) 9/12/1998 7:24:00 PM From: Lars Respond to of 15132
***Truman Tribute*** To: Double D (109 ) From: Truman Bradley Sunday, Mar 16 1997 3:15PM ET Reply # of 7905 Don: This is what all the fuss is about. The following was culled from a reply given on this SI bulletin board in another topic: March 14 From: Wall Street Journal news alert Subject: Buffett Sees Stock Risks Warren Buffett believes the U.S. stock market is "overheated" and says that "the overpayment risk ... in our opinion, may now be quite high for the purchasers of virtually all stocks." The legendary investor made the comments in his annual letter to Berkshire Hathaway shareholders, an advance copy of which was obtained by The Wall Street Journal Interactive Edition. ------------ I do not say that Brinker turned bearish yesterday upon hearing Buffett's admonition; however, there was little question that the news unsettled him. Wrestling with Buffett's motives, Brinker could not seem to fathom why Buffett, a long term investor, if ever there was one, would issue such an unprecedented, if not dire, warning. While still overall bullish, Brinker, to restate it, seemed measurably cautious when discussing the market after being informed of the great Buffett's pronouncement. Indeed, Bob re-echoed his position that, while still bullish, he is not complacent about this market. Parenthetically, to recall it, Brinker told his listeners that Intel had become a "trading stock" given AMD's seemingly competitive new K-6 microchip, which presumably goes head to head with Intel's pro-Pentium chip. Beware Intel on Monday. That being said, I am expecting a bearish event on St. Patrick's Day. The Buffett remark is bound to unravel the dangerous complacency of many investors. Barron's reports that there was an explosion of call option buying on the very day the Dow dropped 160 points last week. That seems to telegraph loud and clear the public believes this market can only rebound after a plunge, i.e., the market will always go back up. For my money, that smacks of too much naivete and complacency. Regards, Truman Ps. To recall it, the Buffett brouhaha came in the second hour, although I may stand corrected here. Surely, Bob will clarify and/or restate his positions today