Without looking at a lot of data, i quickly looked up info on these two companies. Why would wb buy into these companies. They dont seem to fit into his mold in several areas.
ROE was low on both. Believe both had a good amount of debt. I know he doesnt esecially ;look at earning, but if he did, both are priced high compared to earnings. I just did not see a value play, or grat business fundamentals.
I own the stock, but, did not read it that 80,000 should be added to the stock price.I read it that the earning power of 80,000 per share should be added to the fair value of an " a share".As an example, if he makes an extra 5% with the money thats $4,000 per share.
Your knowledge of accounting and corporate finance is obviously weak. What Buffett said was that for each share of Berkshire A issured to shareholders of General Re, that Berkshire got $80,000 in value, not in addition to the current share price but in exchange for the General Re stock. But $150,000 per share works for me.
Exactly! That is the only logical approach for the individual investor to take. Hitch a ride. And don't hitch it with some underperforming and overhyped mutual fund manager. Stay away from Janus, Putnam, and all that other junk. History has very clearly shown that the ability to beat the market averages by a significant margin in the long run is extremely rare. It is easy to confuse a lucky hot streak with real stock picking talent, but time brings reversion to the mean for all but a few. Peter Lynch and Buffett clearly are market beating stock pickers; almost everybody else, including clowns like Mario Gabelli, Jim Jubak, & Michael Price, are not. The key realization one has to come to with this approach is that one shouldn't try to do one's own analysis of individual stocks. Pick the right master stock picker, and let he/she do the stock picking for you. Don't try to figure out or understand what is going on at the companies you invest in. To do so is a waste of time (contrary to the advice you always here - "understand what you invest in." This only applies to people that do their stock picking on their own. Am I going beat the market picking stocks on my own? NOT!!) Picking stocks on your own, and doing your own analysis in support of it, is fun for some people, but is a complete waste of time unless you are one of those rare birds who actually is a market-beating stock picker- not just someone who just thinks they are a market-beater. IMHO.