Buffettique Discussion Threads

[liarspoker] 25/2/2008 18:10

Funnily enough recruitment is a sector that I have also always disliked but it's cyclical like the advertising companies that Buffett invested in in the 70's bear market. Things like Interpublic & Ogilvy that multibagged for him he picked up when they were broken down - even cheaper than RWA now. You can't get that sort of value now-a-days though. I think that Interpublic was picked up at under 2X PBT & under 2/3rds NTAV - a bargain especially since the brand name ( intangibles ) carried a lot of value ( like RWA ). Like you said RWA is well diversified too. Look at the cash too - 2 years ago it was about GBP 13m now it's near GBP 24m - nearly double even after acquisitions. I'm hoping for a dip anyway. :O)

[gsands] 25/2/2008 17:32

Liarspoker,

Just looking at the company and it looks interesting.

Instinctively I dislike the sector, but I cannot argue with the numbers. I also cannot argue with the company's international exposure, especially in the Asia/Pacific.

Looks like I will have to trail this one and hope for a dip.

Wish I'd spotted the Ruane news at the start of Feb. c115p to buy then. 30% later here I am.....

[liarspoker] 25/2/2008 17:18

Still plenty cheap GSands. 2008 PBT less than 5X, P/E of about 4.5 if you strip out the cash, Return on Equity about 50%, 116% cashflow on operating profit, a great franchise, new JV into China etc etc. Nice divi too. Just wait for a dip and buy and hold imo. An easy formula to make good money but to many punters prefer to trade on these threads. Their loss though. :O)

[gsands] 25/2/2008 16:49

Liarspoker,

Well done on RWA.

Robert Walters says Ruane, Cunniff & Goldfarb ups stake to 11.304 pct




LONDON (Thomson Financial) - Recruitment consultancy Robert Walters PLC said
New York based investment firm Ruane, Cunniff & Goldfarb Inc now holds about 8.7
mln shares in the company, or 11.304 pct, up from 7.228 pct held earlier.

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[bmw566] 25/2/2008 14:41

So should we be following the master into Brazil?

[liarspoker] 21/2/2008 14:26

Got a few RWA today:



Bill Ruane's company just took an 11% stake. Ruane is a noted 'superinvestor from Graham-Doddsville' as picked out by Buffett himself in his great speech.
Buffet actually directed client to Ruane when Buffett folded his partnership.

[liarspoker] 21/2/2008 08:38

No probs Gsands. :O)

Buffett guidelines & history:



I did notice Interpublic in his previous buys although I have it down as a 9.95 bagger in 8 years as opposed to 11 years as stated in the article.

Other early Buffett purchases of note include the Washington Post held for over 30 years and was a 12.5 bagger, Affiliated Publishing - held for 7 years, 14.84 bagger, OGC & Mather - held for 5 years, near 4 bagger.

Few purchases were held for a year or two as well though and include Amerada Hess - less then 1 year, 92% return, Pinkerton, 2 years, 62% etc etc.

Intersting stuff imo.

[gsands] 16/2/2008 12:03

Liarspoker,

Many thanks for your input. I was just about to update the thread with Buffetts new purchases, but you beat me to it.

Interesting that he seems to be quite active in this market turmoil.

[liarspoker] 15/2/2008 13:07

Buffetts trades for Q4 2007:

[liarspoker] 15/2/2008 13:06

Buffett is Krafts largest shareholder:



Buffett invests in Glaxo:

[liarspoker] 13/2/2008 08:51

2 out of 3 pass on Buffetts lifeline:

[liarspoker] 08/2/2008 16:15

Kevin Clayton - a Buffett bought manager shares his thoughts:

[topcar] 07/2/2008 21:00

taffee, that is exactly what he does, buy bombed out unloved companys, he is a predator,
Companys who normally are mkt leaders/at the top in there sector, or very near mkt leader, this is where he made all his early money from, i have read all his books, and iam following his method, on a lot smaller scale i might add, companys who have had passed earnings, but have run in to short term problems, then the mkt goes way over the top and slaughters them,

These are three, iam looking at,

Sci Entertainment, mkt leader in uk and parts of europe, gaming industry set to double by 2011,a very difficult industry to enter,
Mkt cap gone from 500mil down to 50 mil,

jarvis, railways repairs/ freight /plant etc, mkt cap 24 mil down from 200 mill,

Pendragon uks largest car retailer, mkt cap 200mil down from 850 million,

Are there mkts going to disapear for ever, is the big R, going to last longer than any other, we have all seen before ? Mr B, has seen it all before, couple of years holding, where could they be ??
Do not get me wrong, not all bombed out companys by the mkt will survive, but i bet a good 90% will, spread the risk, TopCar.

[taffee] 07/2/2008 20:15

buffet mainly invests in people.....he loves motivated management...simple really

buy bombed out companies with good earnings and motivated people...then hold on for dear life

[edmondj] 07/2/2008 20:12

Can't a multi-billionaire even decently iron a shirt collar - or get someone to?!

[careful] 07/2/2008 19:57

Warren is just an old romantic.
Some of the shares he owns, Wells Fargo, Disney, Coca Cola and Washington Post are the history of America.(Also great companies)

The introduction in this thread refer to the Birlington Railroad.
Real pioneering US, into Indian territory of the old west.
In Willa Cather's book 'Lost Lady' she refers to 'Birlington men'.

Warren is a collector.

[careful] 07/2/2008 19:50

about Buffett being scruffy.
he was once asked 'why do you wear cheap suits?'
he replied 'I don't, they just look cheap on me.'

[edmondj] 07/2/2008 19:41

By the way, it's Buffett not Buffet! (Header)

[liarspoker] 07/2/2008 19:36

Come again ?

BTW nice try spreading rumours on the TSCO thread. :O)

[hutchison2] 07/2/2008 19:31

anyone can make money with inside info

[liarspoker] 07/2/2008 19:11

3rd richest person in the world rates fairly well I would have thought. ;O)

Sounds like you got burned hutchison2.

[edmondj] 07/2/2008 19:05

Only a mega billionaire could have such scruffy hair + shirt collar!

[liarspoker] 07/2/2008 18:52

EdmondJ - try SFR. :O)

New Buffett: