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International Investing / Australia (All-Ordinaries)


Subject:  Re: Sector Returns Date:  4/24/2001  8:46 AM
Author:  wayjo Number:  2245 of 6186

I'm glad that Buffet has given you something, but if he was that good
I'm sure followers would also be downing banana daquiris.

Seeing as I am a Buffett devotee I couldn't let this one slide to the keeper without comment.

many Berkshire shareholders are downing banana daquiris metaphorically.

Lets run through the list that I know about just from sitting here in sunny Qld.

Warren Buffett: $29billion ( no inheritance, no options, no cheap vendor shares, no free executive ownership plan shares. All shares purchased on the market for cash from a salary of $100k)

Charlie Munger: $1.2billion (ditto above)

Otis Booth: $1billion bought shares after being involved in business with Munger.

Stewart Horejsi: $360million. Welder who started buying shares in the early 80's and never sold.

Ernie Williams: $250 million. Stockbroker who met Buffett for 15 minutes and kept buying shares after that meeting.

Carol Angle: $300 million. Doctor still working and an original investor.

Neil McMahon: $2.3million. Fireman who bought a few shares in 1982 and never sold.

Saved the favourite for last
Donald Othmer: $ 800 million. This guy was a professor at University and lived a very modest life and no-one had a clue he had any money until he died and left the $800 million to his emloyer. All Berkshire stock bought over the years.

Buffett has said we won't know how much wealth he has created until the shareholders start dying but estimates are there are at least 30 people in Omaha alone worth over $100 million in Berkshire stock.

So yes the shareholders (and I am as well) are drinking banana daquiris and we haven't stopped yet.

The second comment about market rotation I won't dwell on too much except to say that while it may be a current investing technique, probability theory alone would tell you it can't be a successful long term strategy.

Buffett himself has stated that over 90% of his wealth has been determined by less than 20 investments. He's a genius and a lot of us aren't. Make it easy on yourself and increase your chances of succcess by making fewer decisions.

I for one don't know the economincs of each sector on the stockmarket and judging by the Funds performance neither do they.

Sorry about the rant so I am going to take some deep breaths and go back to reading my Berkshire Annual Report.

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