Forum Archive Index - March 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Travis,

>
> 
>Interesting to note is that McNiven says he forwarded
>the transcript to Buffett who replied that he does
>*not* use valuation strategies like those described in
>Buffettology.
> 
>He never said quite what strategies he does use, just
>not the  {EPS = book value x ROE 
>Retained earnings = EPS - dividend
>Book value next year = book value this year + retained
>earnings} method of projecting EPS.
> 
>

I haven't had the privilige of sitting around the dinner table with 
Warren Buffett, although ex- daughter in law Mary Buffett, co-author 
of Buffetology has.

I don't suppose that Mary was ever part of the true 'inner circle' 
(I am not aware of her ever being employed by Berkshire Hathaway) and 
I suspect what inner knowledge she has put in the Buffettology 
books has been further simplified for a popular print.

However, I don't think, Travis, you are arguing that the basic idea 
of viewing buying shares in a company as a kind of 'long term bond' 
is not what Buffett does.  Indeed you are on record as using this 
approach yourself, albeit perhaps in a slightly more sophisticated 
way than the way Mary Buffett presents the method.

SNOOPY

 
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