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

To: James Clarke who wrote (648)	12/7/1998 10:46:00 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 4691

James, BA, FedEx and (partially) DIS. All of them have high capital expenditures, and that was a Buffett no-no some time ago. What is your opinion about that? The inflation may be dead now, but it may not remain dead. Cash flows of these three guys are not very exciting from the first glance. Where the capex come from? BA has to build planes, FedEx has to buy planes. BTW, some rag had suggested that FedEx will finish its "upgrade cycle" a year or two ago. Now they say it again. Hmmm. DIS and their competitor studios throw millions into movies like cash into fire. Also BA does not have the Gillette model - planes are not replaced very often, resulting in business cycles and potential long term glut problems. Otherwise, I also wanted to own the future of aviation and space exploration. Glad to have passed it until now. :-) Good luck Jurgis