Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jhg_in_kc who wrote (1152)	3/15/1999 7:34:00 PM
From: Michael Burry	Respond to of 4691

JHG, I'm apoplectic. No clothes? 1.Warren Buffett's investments did not perform as well as the S&P 500 last year. He doesn't have to outperform it every year! Especially during previous tulipmanias he has not done so. Yet when the crash came he was still positive when everyone else was negative. 2. He kept the bat on his shoulder or so it seems saying there are no "elephants" out there to buy. Exactly what he should do. Wait for the pitch. With his current cash arsenal, he can wait for the biggest, fattest pitches. I'm sure he's aware that just because he has >$10 billion he's not going to deviate or throw away a "measly $500 million" here or there. 3. He did do a truly fine deal to get GEn Re but the big cash float remains uninvested. Thank the Lord! Mike

To: jhg_in_kc who wrote (1152)	3/15/1999 7:43:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 4691

No doubt it's a cult of personality. When he dies, well that's an issue I've brought up before. But the key is to understand that the businesses he's assembled are tremendous and near-well perpetual. There's a concept here of "owner earnings" that is one of the many concepts you're not getting. The legal rights of BRK as a corporation is another. You are obviously here to "bear-bait", as it were, and you just as obviously have an immature investment view whereby you've made money hence you know all. Well, there are a lot of you - it's an idiot-proof market don't you know? Mike

To: jhg_in_kc who wrote (1152)	3/15/1999 8:06:00 PM
From: Michael & B.Anne	Read Replies (1) \| Respond to of 4691

re: No one dares say the emperor has no clothes Me too JHG .. I'd drop BRK and look for better returns .. I just don't know where to go. The core of our portfolio is BRK and GE. I like GE ... everyone likes GE ... and it is selling for a relatively low p/e multiple of 39 times earnings. On one hand, that seems a little high, but then again it seems so very popular right now. And perhaps the inference inherent in your post is correct -- earnings do not matter -- (forget the concept of quality of earnings) it is all so confusing. regards best of luck in your voyages