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In a message dated 98-02-06 22:05:31 EST, jvc689@xxxxxxx writes:
<< As a long time Buffet watcher who has made money more often than not
purchasing his stock selections immediately after SEC filings,I tend to
disagree with your viewpoint.
1.Buffet historically purchases for the long haul.
2.His Berkshire Hathaway company is very liquid.
3.Buffet very rarely does the obvious.
4.There is no pressure on him to sell.
5.He hates short term gains. >>
Sorry John, Rick is right, but so is Mr. B. He bought low and is or
will sell high and woe be unto him who chaseth this one.
You wrote in item 1. "Buffet historically purchases for the long
haul." and in item 5. "He hates short term gains." but you also gave the
answer in item 3. "Buffet very rarely does the obvious."
Also you wrote "2. His Berkshire Hathaway company is very liquid."
Liquid enough to manipulate the market, but not to corner it. There is simply
to much supply available. Others have tried and failed. He is too smart to
try this.
"4. There is no pressure on him to sell." Yes there is. He is
actually taking delivery of the silver, not trading futures. This amount of
metal costs a lot to store, insure, assay ship, etc. This all eats into
profits and the longer he holds the more it costs, untill no profits are left.
He knows this too.
He is basically in a box where he has to sell and may be doing so
now. He has to get out before new supply comes in and the costs eat the
profit. For us mortals all that is left to do is short silver before word
gets out that Mr. B. has sold and the price crashes.
Good luck and good trading,
Ray Raffurty
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