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From: | "tennyson@caverock.net.nz" <tennyson@caverock.net.nz> |
Date: | Fri, 7 Mar 2003 16:53:16 +0000 |
Hi Gavin, > >Lazyhaggis wrote: > >>Buffett's latest letter to shareholders effectively warns investors >>to get out of equities, wait on the sidelines for better value, and >>of a pending collapse in financial companies due to the derivatives >>markets. After three years of falling prices stocks remain >>unattractive. > > >Surely buffett was talking about US stocks which still have an >historically high PE value, there are plenty of good deals in the >New Zealand market. > > You are correct Gavin. I just found the link http://www.fortune.com/fortune/investing/articles/0,15114,427758,00.h tml Here are a couple of pertinant quotes: "Charlie and I are increasingly comfortable with our holdings in Berkshire's major investees because most of them have increased their earnings while their valuations have decreased. But we are not inclined to add to them. Though these enterprises have good prospects, we don't yet believe their shares are undervalued." "Unless, however, we see a very high probability of at least 10% pretax returns (which translate to 6% to 7% after corporate tax), we will sit on the sidelines. With short-term money returning less than 1% after-tax, sitting it out is no fun." Accroding to this article, Warren is quite happy to hold onto the shareholdings that he owns while the prices are decreasing, so long as underlying earnings are increasing. He is also looking for companies that are yielding 6-7% after tax. Well, guess what? There are lots of NZ companies that will give you that sort of return. IMO if Warren were an investor in the New Zealander he would not be sitting on the sidelines. I think he would be buying. SNOOPY --------------------------------- Message sent by Snoopy e-mail tennyson@caverock.net.nz on Pegasus Mail version 2.55 ---------------------------------- "Dogs have big tongues, so you can bet they don't bite them by accident" ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/chat/forum/
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