Forum Archive Index - December 1999

["hugh webber" <hugh.webber@clear.net.nz>]

some interesting material there Phil such as the heavy borrowings by techs.

One point of interest from Buffetology is that some shares apparently too
dear to buy on their present ratios are shown to be very cheap in the
Buffett analysis. Apparently Warren looks at the % return on shareholders
funds in recent years, also looks for a high retained profit ratio (low or
nil payout on dividends), steady growth in earnings per share and hey
presto what's apparently dear is very cheap if his other criteria are
satisfied of good management, avoiding commodities and going for consumer
monopolies such as AIA in NZ. Of course you need to be in for a few years
rather than a fly by nighter....
I haven't had time yet and there's not yet much of a track record in shares
like AIA to attempt his analysis but its an interesting thought.

I note Warren says he's not into techs because he can't understand them in
terms of his analysis....I wonder how many tech investors are really better
than that.




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