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

To: Chuzzlewit who wrote (893)	1/2/1999 1:34:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 4691

Great, Barnes & Noble made 11 cents in the third quarter if we forget the losses from the internet business. Am I missing your point? THE STOCK TRADES AT 42! Thats 42 dollars, not 42 cents. I understand what you are saying, that they used to lose money three quarters out of the year, and now they make a few pennies. But are you arguing with my point that this business is an 11-13% ROE business trading at 5.6 times book value. This is a $20 stock at best. [not directed at Chuz] BUFFETOLOGY IS NOT ABOUT LOOKING FOR BRAND NAMES. Many many investors misunderstand that point. Barnes & Noble is a great brand, and a great product, but a lousy long term investment. Even at $20 this is no Buffett investment because it is not a Buffett stock. Its not about brand names unless those brand names mean barriers to entry and high ROE. In this business the brand name does not seem to be worth much. JJC