Forum Archive Index - May 2002

[jerrold poh <pohj@ihug.co.nz>]

> I don't think fundamental investing is 'the only way to go'.  You 
> could try and invent a computer software package so that 90% of the 
> world's PCs need it to run if you like.  

i've read about bill gates in his younger years.  this guy was a master
hacker, and could bum code down to minimal sizes, with the most
efficient algorithms, and also the most stable.

now adays he doesn't program, and never has programmed since the early
90's late 80s.

larry ellison, is a charming, agressive, arrogant, and every year, wins
the playboy bachelor of the year award (or was that best dressed man
award?  can't remember).  he is also the head of oracle, and a multi
millionaire.  his company makes database software, which year after
year, get faster, better, and more stable.

what do these two have in common?  just take for granted that both of
these people being in IT doesn't mean anything.  one makes crap
software, acts like a fool half the time, and the other one makes
brillian software, and is the most charming person in IT, yet bill gates
is the richest man in the world?

the product doesn't matter, the methods don't matter.  both these people
are business men, and they know how to work the system to their
advantages.

my theory is that buffett isn't rich because he used fundamental
investing. he's rich because he knows the power of gearing, how
partnerships work, how to manage people, how insurance companies work,
and he knows business like no-one's business :). 

i reckon if buffett was in the computing business, or gold mining
business, or even if he used technical analysis for this investing
methods,  he would still be as sucessful in that, as he is with
berkshire hathaway. 

anyway, that's the whole point of my initital post ... just to say that
"fundamental investors" put too much faith in warren, and don't
realise that he's rich for many reasons, and not just because he
uses fundamental investing.



jerrold.

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