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To: Paul Senior who wrote (7093)	5/8/1999 10:17:00 PM
From: James Clarke	Respond to of 78462

What I like to hear when I am interviewing a CEO is that he understands EVA in his gut, but does not pay Stern Stewert for what is essentially just common sense. Buffett was writing about it long before Stern Stewert "copywrited" the notion. Actually I find the ones retaining Stern Stewert are the weakest example, because management clearly doesn't have it in their gut. The best example I have seen recently is Manitowoc Corp. (MTW) They live and breathe EVA since new management came in several years ago. Its all they talk about. The results show.

To: Paul Senior who wrote (7093)	5/9/1999 10:07:00 PM
From: Michael Burry	Respond to of 78462

Paul am I understanding that you are making EVA calculations about a company to identify 'fair value'? I don't know squat about EVA other than what I've portrayed of my knowledge here - maximize ROIC and minimize cost of that capital. So for now, I'm just content trying to figure out the mathematical definition, meaning and utility of ROIC. And I'm only on the first step: how to calculate it. I haven't even tackled how relevant cost of equity really is, and how precise we can pretend to make it. BTW, I could just look it up in a book or even a web site. The problem is, I don't believe anything unless I understand it inside out. And even once I understand something, it is not uncommon that I disagree with accepted view (even if it's a Nobel laureate). So I struggle pretty mightily with my own perceptions and definitions every once in a while. That's where I am now. Mike