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

To: Bonnie Bear who wrote (887)	12/31/1998 3:55:00 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 4691

Bonnie, I still claim that the infrastructure is a double-edged sword. It raises the barrier of entry, but it is also capital intensive and lowers your ROI. So you are better off outsourcing the infrastructure if you can pay reasonable prices for it. I agree with you that T has an enormous asset but I am not sure they will exploit it adequately. Regarding REITs, I agree that they are cheap. However, can they be called Buffett stocks? In my opinion, REITs are pure Graham. You can evaluate the book value. You gamble on the real-estate price trend. You can't expect much growth, only return to more "reasonable" valuations. That's why Marty Whitman has a lot of REITs in his portfolios. But I don't see a Buffett here. Happy New Year to all Jurgis