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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?


To: Freedom Fighter who wrote (1729)8/13/1999 3:42:00 PM
From: Michael Burry  Read Replies (1) | Respond to of 4661
 
Me too. Got mine today at 15 3/4. If anyone doubts Keebler or Mrs. Smith's will be around in 20 years...

Backing out non-cash and interest expense, I see them earning over 20% on capital in a down year. The story makes sense to me: capital and information age improvements expensive now, but improved distribution and profitability later. Feels like no one's looking as I steal this.

The debt probably would rule it out for Buffett, but they could pay it down rapidly if they wish. As far as I'm concerned, they don't have to.

Mike