Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: raytoei Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2666  
Subject: Re: this method Date: 8/16/2006 10:18 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Hi Bashmaki,

there is some sort of conspiracy against "Buffettology" because

a. it was penned by a former daughter-in-law, who promised not to spill the beans.

b. it's deemed too simplistic to simply choose between Commodity-like versus consumer monopoly-like companies, for example making and selling Bricks is a commodity business yet Buffett bought Acme Brick in 2000. Check out Benjamin Moore, a paint company that Buffett also bought.

I think it is a valid investing method, one of many tools in the tool box available when we evaluate companies.

It is reasonable to say that IF we invest in a consumer monopoly and IF earnings are consistent and IF it is selling below treasuries and IF ROE is growing consistent, THEN this is a great investment. My current-favorite example is JNJ, which was disclosed a few days ago that Berkshire Hathaway invested about 113+M in it.

cheers!

raytoei
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement