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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: MW who wrote (2534)	5/24/1999 6:01:00 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 3015

Show me a link, I think I'm having a coronary. Does not show on Bloomberg.

To: MW who wrote (2534)	5/26/1999 1:12:00 PM
From: David Penfield	Read Replies (1) \| Respond to of 3015

As of 3/99 Berkshire Hathaway has accumulated 106,800 shares of yours truly or .79%. I find the idea that Mr. Buffett would investing in SRCM laughable. Maybe it's time to sell my BRK! SRCM doesn't satisfy his acquisition criteria (page 21 of BRK annual report at berkshirehathaway.com. In fact, SRCM has the exact opposite traits than some of these acquisition criteria: 1) SRCM is not a large purchase (over $50 million in before-tax earnings). 2) No demonstrated consistent earning power. Remember that future projections and turnarounds are of no interest to BRK. SRCM's story is built on future projections. 3) SRCM doesn't earn good returns on equity while employing little or not debt. As a matter of fact they don't earn anything while employing large amounts of debt. 4) SRCM is not a simple business. Warren has repeatedly said that he is not interested in technology that he doesn't understand. Also, 105,282 shares is at most a couple of million dollars. Mr. Buffett doesn't fool around with millions of dollars. He uses billions of dollars. If he was interested in SRCM he would just buy the whole company.