Monday, September 17, 2007

Eggheads made to eat their words by Warren Buffett

WARREN BUFFETT had it all wrong, Mark Carhart told a packed New York conference last summer.

The fortysomething from Goldman Sachs cited study after study showing big-name companies with high price-earning multiples or rapid growth rates make poor investments.

Traditional stock pickers, including Buffett, a fabled raconteur, may “tell great stories,” said Carhart, but betting on big names like Coca-Cola and Gillette was so old-fashioned and obviously no match for Carhart and his complex box of tricks.

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