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Re: [sharechat] Management's Ability

From:	"Peter Maiden" <pmaiden@xtra.co.nz>
Date:	Sun, 6 May 2001 15:49:17 +1200

Phillip - obviously enjoying the book.

Leading on from this you'll find that Buffett would also have made sure that that the company created at least one dollar of market value for every dollar of earnings retained.

In the workings you did Surgical Supplies retained $1.20 in earnings. Unless the share price went up by $1.20 (assuming a constant number of shares on issue over the period) Surgical Supplies is going backwards - and Buffett would not be happy.

Interesting how much publicity the likes of Buffett and Ron Brierley are getting at the moment - and how 'value investing' has come back into vogue.

Cheers

Peter

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