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

To: Robert Douglas who wrote (397)	9/29/1998 6:50:00 PM
From: James Clarke	Respond to of 4691

Are KO and G still Buffett type stocks and would WB buy them today? Two very different questions. Yes, they are still Buffett stocks, but as we know, that doesn't mean you buy them at any price, even at a price well off the high. You've got to understand the earning power of the business, which includes understanding whether last year reflects the true earnings power, or an unusual peak. From that research, you can calculate the true range of intrinsic value. But the term "Buffett type stock" to me means a type of business. As far as I know, Coke and Gillette are still that type of business. For all Buffett historians - the latest issue of Forbes is an absolute must read.

To: Robert Douglas who wrote (397)	10/1/1998 1:50:00 AM
From: BUYandHOLD	Read Replies (1) \| Respond to of 4691

Robert Clearly KO and G are still part of WB's holdings.… <I am talking about these large consumer franchises stocks of which KO, G, and PG are prime examples. All three of these companies have been through a golden decade, one that will be impossible to duplicate in the next 10 years..> WB would be glad to debate you on the above statement. Matter of fact I would humbly submit that I strongly disagree with the statement myself (like it would make a difference!) Most Buffettologists would agree that the recent drop in prices of G and KO if anything make them even more attractive. Considering that half of the worlds population lives in 2 countries (IND and CHNA) there may still be room for sales (of KO and G) in the next 20 yrs. Here are 60% of Buffett's portfolio. Berkshire's Share of Undistributed Berkshire's Approximate Operating Earnings Berkshire's Major Investees Ownership at Yearend(1) (in millions)(2) American Express Company 10.7% $161 The Coca-Cola Company 8.1% 216 The Walt Disney Company 3.2% 65 Freddie Mac 8.6% 86 The Gillette Company 8.6% 82 The Washington Post Company 16.5% 30 Wells Fargo & Company 7.8% 103 ------ Berkshire's share of undistributed earnings of major investees 743 Hypothetical tax on these undistributed investee earnings(3) (105) Reported operating earnings of Berkshire 1,292 ------ Total look-through earnings of Berkshire $1,930 source;http://www.berkshirehathaway.com/1997ar/1997.html