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

To: jhg_in_kc who wrote (348)	9/24/1998 1:05:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 4691

Dell is no Buffett company yet. If it did this for the next ten years, then yes. But right now it is just one of the not-so-few that boom in their first 5-10 years but may not sustain it long enough for our kids' kids to recognize the name. I'm not saying that commodity businesses are all bad. G's done it in personal health, and Coke's done it in sugared soda water, but will Dell do the same in PC's? That's no sure thing, and none of us can really say. The long-term record just isn't there. I look at the business in its current state and it makes my mouth water (I do see that it has lots of market share to grow into), and I certainly envy the returns of Dell shareholders to date, but for now it is no Buffett company. You're simply betting that it will become one, which is far from certain. And at the current prices with the current analyst following and favor, you're betting against the house. Good investing, Mike