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

To: cfimx who wrote (1068)	2/19/1999 7:30:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 4690

One of the stocks I have owned for a few years now that I have always considered a Buffett story is down again. It might be time to take a look at Ambac (ABK), a specialty insurer. It looks very complicated, but it is not a particularly difficult one to understand once you figure out what exactly it is they do and how that market works. The accounting is also very appealing, as its book of business creates a virtually rock-solid annuity income stream for the next decade. This is a municipal bond insurer. The guy who put me into this stock at 26 three years ago told me "This business is a licence to steal." If anybody wants to take a look and is interested we can explore this one together. My best guess is that is worth about $58 a share. The current price of $53 hasn't been a bad entry point in the past year. The stock tends to consolidate, and then run 30% or so all at once. It has been consolidating in the 55-60 range for a while now, while earnings continue to grow. Hope we can talk more about this gem of a company. You will not find more predictable earnings growth. Jim