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growth and value they're indistinguishable they're part of the same equation or really growth is part of the value equation so there I our position is that there is no such thing as as growth stocks or value stocks the way Wall Street generally portrays them as being contrasting asset classes growth usually is a chance to growth usually is a positive for value but only when the it means that by adding capital now you add more cash availability later on at a rate that's considerably higher than the current rate of interest so there is no we don't we we calculate into any business we buy what we expect to have happen in terms of the cash that's going to come out of it or the cash that's going to go into it as I mentioned it FlightSafety we're going to buy two hundred million dollars worth of simulators this year our depreciation will probably be in the area of 70 million dollars or there abouts so we're putting a hundred and thirty million dollars above depreciation into that business now that can be good or bad I mean it's a growth there's no question about it we'll have a lot more simulators at the end of the year but whether that's good or bad depends on what we earn on that incremental hundred and thirty million dollars over time so if you tell me that that you own a business it's going to grow to the sky and isn't that wonderful I don't know whether it's wonderful or not until I know what what the economics are of of that growth how much you have to put in today and how much you will reap and putting that in today later on and the classic case again is the airline business the airline business has been a growth business ever since well you know that Orvil took off but it's the growth has been the worst thing that happened to it been great for the American public but the growth has been a curse in the in the airline business because more and more capital has been put into the business and inadequate returns now growth is wonderful at seize candy because it requires relatively little like a incremental investment to sell more pounds of candy so it's growth and discuss this in some of the angle reports growth is a part of the equation but anybody that tells you you oughta have your money in growth stocks or value stocks really does not understand investing other than that they're terrific people yeah charlie well I think it's fair to say that Berkshire with a very limited headquarters staff and that staff pretty old we are especially partial to laying out large sums of money under circumstances where we won't have to be smart again in other words if we buy good businesses run by good people at reasonable prices there's a good chance that you people will prosperous for many decades without more intelligence at headquarters and you can say in a sense that's growth stock investing yeah if you'd asked Wall Street to classify Berkshire since 1965 year by year is this a growth business or value business a growth stock or value stock you know who knows what they would have said but you know the real point is that we're trying to put out capital now to get more capital money we're trying to put out cash now to get more cash back later on and if you do that the business rose obviously and you can call that value or you can call it growth but but they're not two different categories and I just cringe when I when I hear people talk about now it's time to move from growth stocks to value stocks or something like that because it just doesn't make any sense
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