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Re: Re: [sharechat] Management's Ability

From:	"Brian Brakenridge" <brianbrak@xtra.co.nz>
Date:	Sun, 6 May 2001 17:17:37 +1200

Peter;

Buffett is adamant he is not a value investor and that "value" and "growth" are inextricably joined at the hip. He scorns the "wisdom" of any advisor who recommends regular changes from value to growth and back.

Simply put the only time he is remotely interested in the value of the company as dictated by the market is when he has ascertained whether or not it is a fundamentally sound company with good growth potential. Having done this he then asks whether or not he can buy this company at a price that makes good business sense.

Again, look at it from a business perspective. Let's say you are looking at buying a business, 100% of the business, and investing everything you have in that business. Do you initially pay more attention to the asking price or the fundamentals such as competition, management, historical earnings, growth potential of earnings etc. I suggest an astute business investor will concentrate on the latter. It's not just a Buffett thing.

Cheers,

Brian

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