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

To: Richard Nehrboss who wrote (562)	11/9/1998 10:53:00 PM
From: Brendan W	Respond to of 4690

The difference in PEs is coming from the operating vs. actual distinction. The Journal has an article about it today.

To: Richard Nehrboss who wrote (562)	11/9/1998 10:59:00 PM
From: kahunabear	Read Replies (1) \| Respond to of 4690

It is incorrect to compare PEs based on operating earnings if the historical data uses reported earnings. In my view, PEs are at the upper extremes of anything we have seen before. I would be interested in any information to the contrary. I am for using current reported earnings when evaluating whether the market is overpriced. It seems like manipulation to talk up forecasted operating PEs as if they were real. It is a great segway into another topic that gets my goat - so called one time or non-recurring charges. IMO, the overuse and recurrence of these charges has gotten way out of hand and distorts actual results. I believe the SEC is currently taking a hard look at this. WS