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Well, it's a couple of weeks away (our next purchase, that is), anyone curious as to what our Founders are thinking. Tom, any thoughts for debate?
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Well, it's a couple of weeks away (our next purchase, that is), anyone curious as to what our Founders are thinking. Tom,
any thoughts for debate?


...Probably AOL???
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"...any thoughts for debate? "

$2,000 + portfolio cash = 1 BRK.B
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Well, it's a couple of weeks away (our next purchase, that is), anyone curious as to what our Founders are thinking. Tom, any thoughts for debate?

I think Tom is getting jealous of his brother's success in the RB port. For this reason, he's going to vote for either AOL or Yahoo. Actually, he's going to vote for Yahoo because he's drooling over their margins compared to AOL.

Dean
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I agree that Yahoo will probably be it although GE, AOL, BRKb, EMC, and maybe ANF (debatable) would be good choices too!

Greg
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Not to kill the excitement, but I am almost positive that we will be adding to an existing holding. It's time for us to bulk up. As an aside, however, of the Internet stocks, AOL may be the only one that remotely qualifies as a Rule Maker. Yahoo doesn't have enough history nor enough sales, inter alia. Not that I don't like it--I bought some for my wife as a birthday gift. Now she has enough to leave me--ha, ha. If you want these types, do an 80% Rule Maker/20% Rule Breaker Portfolio. Plus, the RM and the RB, by definition can't own the same stocks--isn't there a "Tweener" stage in between them?
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As persuasive as the earlier article on Yahoo!was, I'd still be concerned about the defensability of their position -- though I have got it on a watchlist for future purchase.

My guess would be AOL or EMC -- though the debt load at the latter leaves me concerned. (Or am I mistaken about EMC's debt??)

have fun,
--Anthony
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Anthony,

I haven't checked the numbers on EMC myself (which I would do before I invested my own money) but a Fool named hompluem did a CK analysis on EMC at post 1233. Hompluem calculated CASH/Long-term Debt to be 2.5. According hompluem, the one criteria that EMC did not pass was the flow ratio which was 2.33. It was a good post, you should check it out. When I have time I plan on looking a EMC more closely for myself.

Greg
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It was a good post, you should check it out.

Thanks, Greg. I thought I might have had that cash/LT debt ratio bass-ackwards. ;-)

have fun,
--Anthony
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The Rule Breaker just sold a portion of its position (as well as AMZN) in order to diversify. Are you saying they are now going to back track and buy AOL after it went up another 50% from when they sold. No chance. How about Corning (GLW)....the back bone of much of the internet and not over-valued..but a leader. GLW is a global corporation which operates in three broadly based business segments: Specialty Materials, Communications and Consumer Products. The internet survives on their optical fiber and cable.
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The Rule Breaker just sold a portion of its position (as well as AMZN) in order to diversify. Are you saying they are now going to back track and buy AOL after it went up another 50% from when they sold. No chance.

No, because we're talking about Rule-Maker companies, like it says at the top of the page -- two different portfolios.

have fun,
--Anthony
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The Rule Breaker just sold a portion of its position (as well as AMZN) in order to diversify.<<<

This is the Rule Maker board and the question was what is the next Rule Maker purchase
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Plus, the RM and the RB, by definition can't own the same stocks--isn't there a "Tweener" stage in between them?

DoubleEntry,

Nice to see a post from you. I don't recall having seen you recently.

You're right there is a Tweener stage between RB and RM, but that doesn't mean that the RM and RB can't own the same stock. Here's how it can happen: RB picks a stock and holds it all the way from Breaker to Maker status. And since it's still a great stock, RB continues to hold. Meanwhile, the RM investor could pick up some shares of this stock, too.

So, it can happen. Will it?

Fool on,

Phil
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