If you are in a lousy business for a long time, you aregoing to get a lousy result even if you buy it cheap.
If you are in a wonderful business for a long time,even if you pay a little bit too much going in, you willget a wonderful result if you stay in a long time.
I find very few wonderful businesses in Japan at present now.
They may change the culture in some way, so that management gets more stockholderresponsive over there and stock returns are higher.
But at the present time you will find a lot of low return businesses and that was true even whenthe Japanese economy was booming.
It is amazing. They had an incredible market without incredible companies.
They were incredible in terms of doing a lot of businesses, but they weren’t incredible interms of the return on equity that they achieved and that has finally caught up with them.
So we have so far done nothing there.
But as long as money is 1% there, we will keep looking.
Q： You were rumored to be one of the rescue buyers of Long Term Capital. What was theplay there? What did you see?
W: Well, there is a story in the current Fortune Magazine which has Rupert Murdoch on thecover.
It tells the whole story of our involvement. It is a kind of an interesting story because it’s along story, so I won’t go to all of the background.
But I got the really serious call about Long Term Capital (LTCM).
So we’d go with a Friday,whatever it was. My granddaughter, I got a mid afternoon, mygranddaughter was having her birthday party that evening
and I was flying at night to Seattle to go on a 12-day trip with Gates on a Alaska private plane,all kind of things.
I was really out of communication.
But I get this call on a Friday afternoon since things were getting serious.
That I have some other calls before that the article get in a few certain where.
I know those people, most of them pretty well, a lot of them at Salomon when I was there.
And the place was imploding and the Federal was sending people up that weekend.
And so between that Friday and the following Wednesday when the New York Federal, in effect,orchestrated a rescue effort but without any Federal money involved.
I was quite active but I was having a terrible time because we were sailing up through thesecanyons which I have no interests when I was in Alaska.
And the captain was saying: You know, we just sail over there we might see some bears.
While often I said: Straight away, you get good satellite.
So it was exactly the picture.
Both of us got by all faces were going behind me, and I got my back, I am on the phone whichwas the people talking the way working on the phone.