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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (1021)	11/24/1998 1:38:00 AM
From: Berney	Read Replies (1) \| Respond to of 1722

Wayne, Far be it from me to offer an objection to any of the points you make! As I indicated, I profess no particular knowledge on the future of ROE, but totally agree that ROE is little understood and of paramount importance to investing activities. Why else would Buffett even consider retaining an investment in KO? How many other companies would one even consider with a negative current ratio? In my FA scoring system, no factor receives a greater weight than ROE. For two years, I maintained the (at the time) existing Model Portfolio results share-weighted and dollar-weighted. Share-weighted won the battle. In the FA game, I tend not to argue with past results until proven otherwise. Once upon a time, I read that it would take Fidelity more than 30 days at the average daily volume to liquidate their position in more than 750 stocks, assuming that all the volume went to them. Guess what happens on day 2? In the modern world, the game is liquidity. It's the old story that I fought so hard as a young man, the rich get richer, and the poor get poorer. Just as in life, it takes an exceptional or very lucky company to beat the odds of this equation. Berney