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

To: jhg_in_kc who wrote (414)	10/9/1998 7:47:00 PM
From: James Clarke	Read Replies (3) \| Respond to of 4691

This is my last post on Dell until it trades at 25. It was a mistake to start this up again - my bad. When a stock trades 12% of its shares outstanding in 48 hours at prices between 40 and 53, that tells me one big fact. The stock is not owned by owners, as Buffett would define them. The stock is owned by traders. Traders have no loyalty - if they think the stock is going down 50 cents tomorrow, they're gone. Contrast that with the OWNERS of a Coca Cola. Warren Buffett and the many others who followed him into the stock form a rock solid shareholder base which will be tough to break. Your point that every big player on Wall Street owns half a million shares is a negative, not a positive. These are the guys who sell on a whim. If I want to buy an overvalued stock, give me Coke, where well over half the shares are in the hands of investors who will sell very reluctantly. Ben Graham, Warren Buffett's teacher, made a very strong distinction between investment and speculation. Dell shows all the signs of speculation. I'm not saying Coke doesn't. Just about every large stock today trades on speculation. Be very very careful is what I'm saying. Jim