Enlightened Investor Digest 051226f Strategies Of Warren Buffett, Charlie Munger, John Templeton, Peter Lynch, Joel G

Ze n w a y .com

Dec 26, 2005 Issue 051226

Enlightened Investor Digest BEST IDEAS, BEST PRACTICES AND BEST JOKES FROM THE WORLD’S BEST INVESTORS

ACTIVITIES OF THE WORLD’S BEST INVESTORS QUARTER ENDING SEPTEMBER 30, 2005 Enlightened Investors BAUPOST GROUP Seth Klarman BERKSHIRE HATHAWAY Warren Buffett, Lou Simpson, BRANDES Investment Partners Charles Brandes, Glenn Carlson CENTURY Management Arnold Van Den Berg CNA Financial Corp James Tisch, Joe Rosenberg CUNDILL, Peter & Associates Peter Cundell, Tim McElvaine DAVIS Advisors Chris Davis, Ken Feinberg ESL Investments Edward Lampert FAIRHOLME Capital Bruce R. Berkowitz GMO Jeremy Grantham ICAHN Group JANA Partners Carl Icahn, Barry Rosenstein KAHN Brothers KINETICS ASSET MGMNT Peter Doyle LEGG MASON Bill Miller & Company LEUCADIA NATIONAL OAKMARK Oak Value Fund Bill Nygren OLSTEIN & Associates Robert Olstein OMEGA Advisors Leon Cooperman PRIVATE CAPITAL Bruce Sherman, Gregg Powers PROSPECTOR PARTNERS John D. Gillespie SEQUOIA FUND INC Bob Goldfarb SOURCE CAPITAL Eric Ende SOUTHEASTERN ASSET MGMT Mason Hawkins

Buys

Sells

ACUS

CALGZ, UNS, HCBK

TYC, USG EK, PXT, CV, ATYT, BORL, LZB, QNTA, FITB WBSN, CT, IWN, IJR, CNC, PFCR, JWN, RCI

S, RAI, CTL, FLE, AOC

WMT, CHK

FHN, RHI, FCS, VTR

L, DTV FMD, AMB, LM, FELE, SFC, TIF, FLA, NWS, S

LTR

NLY (Insider buys, price drop, positive cash flow, low capex), FRE, CFC KO (Historical valuation low), USPI BKF (Large price drop, insider buy, improving cash flow, low capex), ANX, FHR, LEXR, WLT, ANX ALV, IDT GBLBF, IMO, TKC, RHD, PICO, DEO, LICT, AMP IACI, NIHD, PHG, USB, MWD, TO, FWLT, MRX, DNA, USG, RTN, SPP, LRW IAAC, PRKR, VECO, ACCL IWR

VAR, CTXS, EDO, XXIA, BECN

ITD, KBH

EAC SEE, ECL, ITUI MYL, PPP, SEBL, MWD

FL, AIG, MTLG, FINL S, MCD, RDSA, MSFT, NWSA, CTX, VIA.B, CNX, KND

JNJ, PRE BMS, LXK, WLM, MTW, SYNA, PA VOD, FBN, TPX, BAC, LLY, RDPL

AGI, TD PFE, MRK, DD, NYT, OTL, AMD, TRH, NEM, ABX, ABS, JPM, MMM

C

MICC, PCLN, NMHC, MCF, LEAP

DELL, BUD, NSRGY, PHCT

FIC, CKP

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Page 2 THIRD AVENUE Funds Marty Whitman TRACINDA Corp Kirk Kerkorian TWEEDY BROWNE Chris & Will Browne, John Spears VINIK ASSET MANAGEMENT Jeffrey Vinik WASATCH ADVISORS INC WEITZ FUNDS Wallace R. Weitz WHITE MOUNTAINS Insurance

BORL, HVT, HDL, GSIG, IDT, OME, TSG, PAAS, MOVI

COMS, ASGN, OFLX, BBX, SXC, WRP, FAL, PWR

GM SNY, LXK, BUD NSC, OS, EFII, IPS, HAL, RHI, ARG EASI, MVL, JBHT, WCG, SINT, TUTR

SLE SYGR, WSCI, RCKY, KSWS, PCR ECPG, GPI, CARS, IPMT

BUD, LEAP

HCM, COF, PBCT

Note: The most interesting moves are underlined or in bold face. The accuracy of the information above is NOT guaranteed. Please read our legal disclaimer here: http://zenway.com/disclaim To suggest an enlightened value investor worth tracking, please email: [email protected]

Z

Golden Nuggets & Zen Wisdom from Warren Buffett (in his lectures to student groups) How to Make 50% a Year ♦ First off, follow Graham and you’ll be fine. ♦ You have to turn over a lot of rocks to find those little anomalies. ♦ You have to find the companies that are off the map - way off the map. You may find local companies that have nothing wrong with them at all. ♦ When investing you don’t have to invest in all 10,000 companies available, you just have to find the one that is out of line. You can often find a couple of companies that are out of line. Find one; get rich. ♦ No one will tell you about these businesses. You have to find them. ♦ “Investing is Journalism.” Investing is finding out about something most people don’t know about, just like a reporter wanting to break a big story. He further stated, “You don’t need 99 percent of the information out there for investments.” ♦ It would perhaps even be easier to make 50% a year with smaller amounts in today’s environment because information is easier to access. ♦ The answer is still yes today that you can still earn extraordinary returns on smaller amounts of capital. For example, I wouldn’t have had to buy issue after issue of different high yield bonds. Having a lot of money to invest forced Berkshire to buy those that were less attractive. With less capital, I could have put all my money into the most attractive issues and really creamed it. ♦ If you buy GM, you need to write the price and the respective market valuation. Then

write down why you are buying the business. If you can’t, then you have no business doing it. ♦ Don't put yourself at risk of a bad day. Meaning: don't get in a position that a single bad, low probability day would damage you. Capitalize on Volatility ♦ Markets are there to serve you, not to instruct you. Most people think that what the stock does from day to day contains information, but it doesn’t. It isn’t just something that wiggles around. ♦ Mr. Market is your servant. Mr. Market is your partner and wants to sell the business to you everyday. Some days he is very optimistic and wants a high price, others he is pessimistic and will sell at a low price. You have to use this to your advantage. ♦ The stock market is the best game in the world. You can take advantage of people who have no morals. ♦ The market is the greatest game in the world. There is nothing else that can, at times, get this far out of line with reality. For example, land usually only fluctuates within a 15% band. Negotiated transactions are less volatile. Some get this; others don’t. Just keep your wits about you and you can make a lot of money in the market. ♦ High prices inside of a year will typically be 100% of the low price. Businesses don’t change in value that much. That is simply crazy. There are extreme degrees of fluctuation, and Mr. Market will call out the

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Enlightened Investor Digest

prices. Wait until he is nutty in one direction or the other. ♦ Never has so much been managed by so few that care so much about what happens tomorrow. So much of the world of investing is people who are trying to beat indexes, and they have a willingness and eagerness to make decisions in the next 24 hours. This condition didn’t exist years ago. It has created a “hair trigger” effect. An example of this hair trigger effect was Black Monday in ’87. The cause was program trading and stop loss orders. Prudence and Margin of Safety ♦ Put in a margin of safety. Don’t find a bridge that says no more than 10,000 pounds when you have a 9800 pound vehicle. It isn’t a function of IQ, but receptivity of the mind. ♦ Be careful that when you buy something for a sound reason, make sure that the reason stays sound. ♦ Ben Graham said: “You can get in more trouble with a sound premise than an unsound premise because you’ll just throw out the unsound premise”. [Editor’s note: Therefore, write down the pros and cons. Debate with yourself. Debate with other smart people, preferably in the Zenway Mastermind Group.] ♦ Don't mess with borrowed money. (His max debt to equity ratio used to be 25 percent.) ♦ To value a business, analyze where it will be 10 years down the road. Is there someone to run the business, and is it reasonably priced? The only two classes you need as an investor are "how to value a business" and "how to think about the stock markets." Investment Case Studies ♦ Western Insurance Securities, found by going over the S&P stock guide page by page, was trading for $3/share when it was earning $20/share!! Buffett tried to buy up as much of it as possible. ♦ Genesee Valley Gas, public utility trading at a P/E of 2, GEICO, Union Street Railway of New Bedford selling at $30 when $100/share is sitting in cash, high yield position in 2002. No one will tell you about these ideas, you have to find them. ♦ Berkshire owned the Washington Post, the ABC network and Newsweek. It was selling for $100 million based on the stock price. No debt. You could have held an auction, and sold off the companies individually for $500M total, but $100M was the price. In other

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words they were willing to sell us money that was worth $1 for $0.25. According to efficient markets, the beta was higher when the stock was at $20 than at $37. This is insanity. We bought what was then worth $9 million that is now worth $1.7 billion. It’s Hard to Profit from Bubbles ♦ Identifying bubbles is fairly easy. You don’t know how big they will get and you don’t know when they will pop. You don’t know when midnight will hit, but when it does, it turns carriages to pumpkins and mice. What markets will do is pretty easy. When they will do it is more difficult. Some people want to stick around for the last dance, and they thought that a bigger fool would be just around the corner tomorrow. [Cashing in your chips at the top is not easy.] ♦ If you are buying to own a home, that is fine. Otherwise, real estate seems to be getting into bubble territory. ♦ “Never get into something if you have the intention of someday wanting to get out of it.” For instance, Buffett stated he does not invest in IT stocks because technology changes too much. The Zen of Inner Happiness ♦ “Your inner scorecard is more important than your outer scorecard.” It’s very important for people to evaluate how they behave over a lifetime morally and ethically and not be overly concerned with other people’s impressions. Keep an inner scorecard: judge yourself by your own standards. This keeps you focused when you have many people giving you advice. ♦ You should do the job you love whether or not you are getting paid for it. I didn’t know my salary when I went to work for Graham until I got his first paycheck. Do what you love and don’t even think about the money. ♦ If there is a place that is warm in the winter and cool in the summer, and you do what you love doing, you will do fine. I will take a trip on Paul Allen’s Octopus ($400M yacht), but wouldn’t want one for myself. A 60 man crew is needed. They could be stealing, sleeping with each other, etc. ♦ You’re rich if you are working around people you like. You will make money if you are energetic and intelligent. This society lets smart people with drive earn a very good living. You will be no exception.

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Enlightened Investor Digest

♦ Hang around people who are better than you all the time. You do pick up the behavior of people who are around you. It will make you a better person. Marry upward. That is the person who is going to have the biggest effect on you. A relationship like that over the decades will do nothing but good. ♦ “A person must have a passion for the business they are in – they have to prefer going to work that day than any other option in the world.” Mr. Buffett considers himself unable to ever retire because what he does for a living is not a job in his eyes. Says Buffett: “I don’t work.” ♦ I was lucky because I knew what I loved at an early age. I was wired in a certain way when I was born, and I was lucky enough to stumble upon some books at a library at a very early age. In 1930, I won the ovarian lottery. If I had been born 2000 years ago, I’d have been somebody’s lunch (laugh). I wasn’t strong and I couldn’t run fast. Learn from Mistakes and Move On ♦ My biggest mistakes were errors of omission vs. commission. Berkshire Hathaway was also a big mistake. ♦ Sometimes the opportunity costs of keeping money in something (like a lousy textile business) can be a drag on Berkshire’s performance. We didn’t learn from the previous mistake and bought another textile mill (Womback Mills) 6-7 years after buying Berkshire Hathaway. Meanwhile, I couldn’t run the one in New Bedford. ♦ Don’t worry about mistakes. You’ll make mistakes. Get over it. At the same time, it’s important to learn from someone else’s mistakes. You don’t want to make too many mistakes. ♦ Don't take yourself out of the game because you are fearful of making mistakes. You have to be able to make mistakes to make decisions. Thoughts on Sears/Kmart and Eddie Lampert ♦ Nobody knows. Eddie is a very smart guy but putting Kmart and Sears together is a tough hand. Turning around a retailer that has been slipping for a long time would be very difficult. Can you think of an example of a retailer that was successfully turned around? ♦ Broadcasting is easy; retailing is the other extreme. If you had a network television station 50 years ago, you didn’t really have to invent or being a good salesman. The

♦

♦

♦

♦

♦

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network paid you; car dealers paid you, and you made money. But in retail you have to be smarter than WalMart. Every day retailers are constantly thinking about ways to get ahead of what they were doing the previous day. Retailing is like shooting at a moving target. In the past, people didn’t like to go excessive distances from the street cars to buy things. People would flock to those retailers that were near by. In 1996 we bought the Hochschild Kohn department store in Baltimore. We learned quickly that it wasn’t going to be a winner, longterm, in a very short period of time. We had an antiquated distribution system. We did everything else right. We put in escalators. We gave people more credit. We had a great guy running it, and we still couldn’t win. So we sold it around 1970. That store isn’t there anymore. It isn’t good enough that there were smart people running it. It will be interesting to see how Kmart and Sears play out. They already have a lot of real estate, and have let go of a bunch of Sears’ management (500 people). They’ve captured some savings already. We would rather look for easier things to do. The Buffett grocery stores started in Omaha in 1869 and lasted for 100 years. There were two competitors. In 1950, one competitor went out of business. In 1960 the other closed. We had the whole town to ourselves and still didn’t make any money. How many retailers have really sunk, and then come back? Not many. I can’t think of any. Don’t bet against the best. Costco is working on a 10-11% gross margin that is better than the Wal-Mart’s and Sams’. In comparison, department stores have 35% gross margins. It’s tough to compete against the best deal for customers. Department stores will keep their old customers that have a habit of shopping there, but they won’t pick up new ones. If Eddie sees it as impossible, he won’t watch it evaporate. Maybe he can combine certain things and increase efficiencies, but he won’t be able to compete against Costco’s margins.

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Enlightened Investor Digest

Ignore the Macro Stuff ♦ Risk premiums are mostly nonsense. The world isn’t calculating risk premiums. I don’t think that the stock market will return 6.5% over bonds in the future. Stocks usually yield a little more, but that isn’t ordained. Every once in a while, stocks will get very cheap, but it isn’t ordained in scripture that this is so. ♦ There is a recent WSJ article written by Jeremy Siegel that discussed funds flowing out of investments because baby boomers will need to cash in their investments during retirement. “I respected Siegel, but I don’t find fund flows data useful,” said Buffett. ♦ We aren’t big on demographic trends. It’s difficult to translate that information into profitable decisions. It is hard to figure out what businesses will prosper in the future, based on macro trends. See’s candy is for anyone and Fruit of the Loom is for people who need underwear today. Focus on the Present “Here and Now” ♦ We want to be right on something that will work right now, not something that might work in the future. I doubt that Wal-Mart spends a lot of time on demographics. They instead focus on where to put the store and what to put on the shelves. I’ve never found those kinds of [demographic] stats useful. People were all excited to go into stocks 6 years ago, but it wasn’t because of demographic trends. ♦ “There is no rerun button in life…the time to do things you want to do is today.” “If there is a job you want to do – do it today.” He stated how it’s important in life for students not to worry about building a resume you think others want to see. ♦ [Editor’s note: A single-minded focus on the present moment, here and now, is the central idea of the oriental wisdom of Zen. It is interesting to note that Susan Buffett, the late wife of Warren Buffett, was a fan of Zen Buddhism.]

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Investors Are Not More Intelligent Today ♦ There is no doubt that there are far more “investment professionals” and way more IQ in the field, as it didn’t use to look that promising. Investment data are available more conveniently and faster today. But the behavior of investors will not be more intelligent than in the past, despite all this. ♦ How people react will not change – their psychological makeup stays constant. You need to divorce your mind from the crowd. The herd mentality causes all these IQ’s to become paralyzed. I don’t think investors are now acting more intelligently, despite the intelligence. ♦ Smart doesn’t always equal rational. To be a successful investor you must divorce yourself from the fears and greed of the people around you, although it is almost impossible. ♦ Do you think Ponzi was crazy? The tech and telecom madness that existed just 6 years ago is right up there with the craziest mania’s that have ever happened. Huge training in capital management didn’t help. ♦ Take Long Term Capital Management. They had 100’s of millions of their own money, and had all of that experience. The list included Nobel Prize winners. They probably had the highest IQ of any 100 people working together in the country, yet the place still blew up. It went to zero in a matter of days. How can people who are rich and no longer need more money do such foolish things? ♦ Humans are still made up of the same psychological makeup, and opportunities will always present themselves. All these people have not gotten more rational. They are moved by fear and greed. Z

Next Issue: Zenway Model Portfolio and Hidden Treasures List. Hire Enlightened Investor Digest to work for you full time, filtering out 99% of all the information out there that is useless, and bringing you only the 1% that matters. We turn on the Light. You pull the trigger. Subscribe now! Visit: http://zenway.com/eid or call 646-388-0887. About Enlightened Investor Digest (EID) This is a FREE version of Enlightened Investor Digest. Proprietary research notes from Zenway.com research team are removed from this version to protect the interests of our clients and subscribers. To obtain the deluxe version of EID, please consider support our research work and become a deluxe subscriber at our promotional rate of only $259 a year ($21.6 per month): http://zenway.com/eid © 2005 Zenway.com Inc. This free version of EID can be distributed without prior permission on an “as-is” basis without alteration.

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Enlightened Investor Digest

Graham-Buffett-Fisher Value Investing Online Research Meeting (Scuttlebutt) Dec. 25, 2005 Meeting Transcript Place: http://www.paltalk.com Please download the Paltalk Messenger and look for room “Value Investing. Or look for pal “Brian Zen”. Time: Every Sunday at 5PM New York Eastern Standard Time: Let us meet here to debate specific investment ideas, discuss wealth strategies and swap great jokes. Let us scuttlebutt like Fisher and Buffett. Note: The experience of joining our investment war room meeting is 10 times better than reading this transcript. By reading this transcript, you miss all the audio debates, voice presentations and the hilarious jokes. Brian Zen: :):) Merry Christmas! :):):):):):):) JohnReuwer: Merry Christmas to you too Brian! JohnReuwer: Yep, we can hear you mampara: same to you ... and wish you a very prosperous New Year ... may your assets grow!!!! JohnReuwer: I am actually out of town myself but I couldn't miss the meeting! mampara: i bought a mic ... but my sound card needs replacement mampara: about Greenblatt mampara: i just got an accunt opened at foliofn.com Brian Zen: I bought some Greenblatt stocks. Brian Zen: Here are the symbols: mampara: mid january i'll be buying 5 Greenblatt stocks mampara: i can hear you clearly Brian Zen: CECO, HRB, WON, TRB Leonartist: hi all Brian Zen: BSX, too. mampara: how many stocks are you planning to put in your Greenblatt portfolio? Brian Zen: Planning on buying 20. JohnReuwer: Hey Leon Brian Zen: Trying to see if the computer is smarter than myself. JohnReuwer: By "Greenblatt stocks" are you referring to his formula in his "Little Book?"

mampara: yes, John, that's what we are talking about Brian Zen: Yes, John. JohnReuwer: Great. Brian Zen: We hear you, leon, great! Welcome aboard! JohnReuwer: Welcome Leon! JohnReuwer: If you'd like. JohnReuwer: I am looking for 2 things for the beginnning of 2006... JohnReuwer: LOL! OK, so you want my nonLarge cap ideas then? JohnReuwer: Ok, 3 quick picks I am looking for: 1. Altria is probably going to break up the company into 3 parts: PM Domestic, PM International and Kraft. JohnReuwer: Both PM have extremely predictable earnings but Kraft, however, does not. Brian Zen: Ok, MO. JohnReuwer: I plan on going Long Altria and short Kraft. JohnReuwer: When the company breaks up, the big inst. players will probably sell off their Kraft to take the cash. Brian Zen: Too bad, I sold MO recently. Bought around $32. JohnReuwer: 2. Smaller company - ASFI (Asta Funding - Shai's idea). 30% earnings growth, almost no debt, 25% ROE and selling for 11X forward earnings. JohnReuwer: They buy defaulted credit card debt for pennies on the dollar. JohnReuwer: CC defaults are at an all time high and will be for many years in the future JohnReuwer: Market Cap of about $360 million BTW. Brian Zen: Ok, John, you are in for ASFI. Do you want to put ASFI on the record as your pick? JohnReuwer: Sure, I would love it. JohnReuwer: 2 potential problems with ASFI for those interested: Brian Zen: http://finance.yahoo.com/q/pr?s=ASFI JohnReuwer: They were late with their earnings report last quarter. They cited Sarbanes-Oxley but that has been in place for some time now. mampara: nevertheless, net margins and ROA/ROE are pretty healthy

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Enlightened Investor Digest

JohnReuwer: Very healthy. This entire industry has unbelievable financials. mampara: late reporting is definitely a red flag JohnReuwer: PRAA is their competitor and is a larger company. JohnReuwer: However, PRAA stated that there is so much defaulted debt around right now that companies are not truly competing for debt at this point. JohnReuwer: This means debt, for them, is dirt cheap. Brian Zen: Insider selling is another issue. JohnReuwer: Agreed. That was another issue that I was going to mention. JohnReuwer: It wasn't an obscene amount and ASFI is near highs so I am not too concerned. When insiders sell near the bottom, then I am concerned. mampara: analyst long-term projected earnings growth rates for PRAA and ASFI are 19% and 15, respectively mampara: any ideas why? Brian Zen: Whether they could collect on the loans would be the key. Brian Zen: Anyone has insight into the loan collection business? JohnReuwer: Exactly. Another issue is how long this debt bonanza will continue. If it dries up, competition for debt will be fierce. mampara: i do a little bit Brian Zen: How do we evaluate the quality of those loans? Are there enough disclosure in the 10K? mampara: i've been owning a few units of a CA limited partnership that has been doing this for over ten years JohnReuwer: The 10K looks ok to me, but one thing that is usual about ASFI is that they make money from not only collecting on the debts but reselling the debt. PRAA, however, seems to derive more income from the collections themselves than ASFI. This probably means ASFI is more sensitive to changes in the availability of debt. mampara: defaulted and non-performing loan/debt assets requires skip tracing ... it's usually done via information ferreted out of the credit reporting agencies, etc., a lot of high tech software involved JohnReuwer: For the sake of honesty, I own both PRAA and ASFI. Brian Zen: What is the bench mark for these companies? JohnReuwer: PE for the industry is about 15

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JohnReuwer: PB is about 2.7 I believe JohnReuwer: Do you guys hear that? Brian Zen: asfi seems to be a play on growth. Right? JohnReuwer: Growth and on an absolute valuation, I show Margin of Safety of about 20% at about 24. JohnReuwer: in my DCF that is. mampara: PCU Brian Zen: OK, PCU, we are all ears. Why you like it? JohnReuwer: Nice dividend! mampara: i've been trying to do my own stock screen like Greenblatt's on Reuters and this company came up on the screen Brian Zen: http://finance.yahoo.com/q/ks?s=PCU mampara: it expected to be a 20% grower ... not sure if it will do well within on year, but i'll stick with it JohnReuwer: How sensitive is the company to falling copper prices? I believe copper is near almost all-time highs (I could be wrong). mampara: don't know quite yet, i'll have to do some more research on it ... what i do know is that gross margins have gone as low as 30% and as high as 60% Brian Zen: Do you have three reasons why you like PCU? High roc, high ebit/ev? JohnReuwer: Wow, those are nice margins for copper. Brian Zen: Hi, mamalie. mampara: roe, roa, and net margins are attractive, try that for 3 reasons Brian Zen: Leon, do you have a stock pick for 2006? JohnReuwer: How about a quick joke Brian? I heard you have a good off-color joke. Brian Zen: Let me put in mine: QLTI, reasons: 1) blow BV, near Tangible BV, 2) positive CF and earnings, 3) insider buy, 4) the first dominant player in a high professional frield usually stays. mampara: i agree with your reasoning regarding switching cost JohnReuwer: So this is already an established company correct? This is a big advantage in this field. mampara: i have a company in my portfolio whose products have high switching costs Brian Zen: Yes, it is a one-drug wonder company. The growth prospect is perhaps dead. Any other negatives you guys see in QLTI?

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Enlightened Investor Digest

mampara: do you consider QLTI as turnaround play? Brian Zen: Yes. JohnReuwer: Exactly. Every good portfolio should have some well-thought out speculation. Brian Zen: It is a bet on switching cost. mampara: John, I'll have to work on the wellthought out part JohnReuwer: lol. You and me both. JohnReuwer: Brian, I actually have an eye appointment in about a week. Do you want me to ask about this technology? JohnReuwer: And my family is in medicine so I could get you a decent answer sooner if necessary. JohnReuwer: LOL1 mampara: lol JohnReuwer: That is actually very good Leonartist: loll JohnReuwer: Leon is back! Leonartist: oh , no thank brian JohnReuwer: Do you know a good joke Leon? Leonartist: i got some problem with my mirc now Brian Zen: Guys, Merry Christmas!!! It's time to go out for parties and profits! Leonartist: Leonartist: all right , merry christmas all Brian Zen: I see a couple of people coming in and out. They must have computer problems. mampara: Merry Christmas to you as well ... i will be doing my portfolio checkup within the next week mampara: so it's going to be fun Leonartist: i have to go now , bye all , good luck JohnReuwer: Merry Christman everyone! JohnReuwer: See you all next week. JohnReuwer: Bye Leon. mampara: bye Leonartist: see you ya sydorf: Too bad, I missed the show.

2006 Stockpicking Contest JohnReuwer: ASFI at $27.66 Mampara: PCU at $68.05 Brian Zen: QLTI at $6.06 Shai Dardashti: SGU at $1.8 Artofgolf: FNVG at $0.06 Brkanalyst: BRK at $88,700

================================= On March 15, 2005, Dr. Brian Zen, CFA, told his "Enlightened Investor Digest" subscribers to buy Netflex (NFLX) at $9.15. NFLX zoomed to $30 within a few months. Here is a sampling of Dr. Zen's recommendations over the years: [1] Microsoft (MSFT) recommended on 11/23/1990 at $0.90(split adjusted). Now $27. [2] Berkshire Hathaway (BRK) strongly recommended on 2/18/1993 at $12,100. Now $90,000. [3] Dell Computer (DELL) on 1/13/1996 at $0.99(split adjusted). Now $32. [4] Philip Morris (MO) on 3/10/2000 and 4/8/2003 at $19.63 and $30. Now $76 [5] Citicorp (C) on 10/10/1994 at $5.42(splitadjusted). Now $50. For only $21.6 per month ($259 per year), as an EID deluxe subscriber, you will get: 1) Enlightened Investor Digest (Deluxe) with best ideas, best practices and best jokes from the world's best investors. 2) Portfolio reports about the recent activities of superinvestors like Warren Buffett, Eddie Lampert, Martin Whitman, Seth Klarman and Joel Greenblatt, etc. 3) Updates on “Zenway Model Portfolio” 4) "Hidden Treasures Watch List" from Zenway.com Enlightened Investors Network. 5) Billionaire Lecture Notes (covering lectures of superinvestors like Warren Buffett and Seth Klarman, etc.). All our notes are in zenway bullet-points concise format to save you valuable time. If we could save one hour for you per month, you would be getting a good return on your subscription investment, not to mention that one proprietary stock pick from us could make you many times your annual fee. 6) Monthly Graham-Buffett Investment Research Online Meeting (Voice and Text) 7) Investment Research Mastermind Yahoogroup Hire Zenway.com research team to work for you now. Subscribe at: http://zenway.com/eid Disclaimer: http://zenway.com/disclaim

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