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

To: Michael Burry who wrote (451)	10/18/1998 10:55:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 4691

Where did this notion come from that Buffett does not care about P/E? He is still a value investor to the core. So many people confuse the fact that he owned Coca Cola at 60 times earnings with the notion that he would buy it at that price. Do you realize the capital gains tax he would have to pay if he sold? Go back and look at the price he paid for Coca Cola and Gillette. It was below 20x, well below in the case of Gillette. Buffett investing is about finding good businesses, but that is just step one. The most important step, in terms of your long run return, is waiting and waiting until you can get it at the right price, and then buying big. There are very very few Buffett type stocks at the right price today. I would guess Mr. B spent some cash in the last couple months, but we are still nowhere near the point where you can just scoop these up at absurd prices. Maybe we'll never get there again, but I think we will. DNEX is very interesting - a great little business. I would like to see a better price, but its close. After reading the 10-K, the problem I have is another important tenet of value investing. You've got to understand the business. DNEX is tough for me. Too much jargon and technology I will never understand. I don't like investing in black boxes. I'll keep watching it though, so thanks for letting me know that this little gem is out there.