Being Buffett

**Joubert**[$] · #1 05-06-2006, 02:46 PM

On Friday, the WSJ fell all over itself predicting acquisition activity for this weekend's Berkshire Hathaway annual meeting. Several potential targets were named, and I love 5 of the 6 rules Buffett uses to evaluate an acquisition. I'm not overly fond of the no technology rule for obvious reasons.

Today, the WSJ ripped Buffett apart for trailing the S&P, for falling behind on more modern money management metrics. For example, shares in BRK.A are only 44% more likely to outpace cash according to one measure the Journal uses.

Meanwhile, Berkshire bought 80% of a metalworking company for $4 billion after the market closed Friday.

Buffett is supposedly saying now (this morning) that more non-US acquisitions are in the works. Meanwhile, they own so much it's scary. Besides having the most boring corporate website on the planet, the company's major holdings are:

Wholly owned subs: Geico, General Re, National Indemnity, Dairy Queen, Fruit of the Loom, Pampered Chef, See's Candies, Business Wire, Russell Athletic and Clayton Homes (just before I invested, darn it)

Other Stakes:
80% of Wesco
18% of The Washington Post (and Kaplan and all its subs)
12% of American Express
9% of Gillette
8% of Coca-Cola Enterprises
8% of H&R Block

and just so much more.

But two questions:

1) Will continuing to steer away from tech hurt, help or not impact Berkshire?
2) How much of a "Buffett premium" exists in your opinion?

**pippadaisy**[$] · #2 05-07-2006, 07:45 AM

See, this isn't English to me. It looks like English but nothing.

**lynnzop**[$] · #3 05-08-2006, 08:20 AM

I wish I would have bought Berkie stock back when I first moved here and it was a bargain at $20k.

And I was glad to get out of Dodge when the Berkies were in town. It's a madhouse of millionaires that whole weekend.

Warren is a god in Omaha...he lives in a nice, but unassuming house in an older neighborhood. Drive right by it when I do Meals on Wheels.

Personally, I think steering away from tech stocks is a mistake, but I'm not worth a bizillion bucks, either.

**Joubert**[$] · #4 05-08-2006, 08:55 AM

He is only the 2nd richest man in the world. The richest man in the world is his bridge partner and sits on his board. It's actually a smart thing.

"You don't like me just for my money, do you?"

"No"

"No one understands what it's like to have $8 billion liquid"

"I know, I know"

24,000 crazed Berkshire shareholders plus media in Omaha to learn.....

....he's gonna buy an Israeli metalworks company. Yeah, interesting. Buying Comcast would have been more interesting. Oops, no tech.

How about the rest of The Washington Post? Nope, dying off except for the tech pieces.

How about Ford? That would have been fun. Kirk could go after GM and Warren could go after Ford. The Germans already got Chrysler.

(Trying to think if I can insult anyone else in this post....)

Nah, that's about it. But I would have brokered a deal for Amy in case he wanted EA. Oops, that tech thing again. Never mind.

Maybe he ought to just buy a straw market in The Bahamas somewhere if he is so afraid of computers.

**lynnzop**[$] · #5 05-08-2006, 09:35 AM

You forgot the "I can't quit you, Warren" line.