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Warren Buffett has been busy buying private companies, including The Pampered Chef, a kitchenware retailer, and apparel maker Garan (of Garanimals fame). That's promising. It suggests a value gap between the private and public markets because Buffett finds most common stocks still overvalued. Meanwhile, private-asset funds are a contrarian's delight: net new investment in venture-capital funds, which mainly seed technology and medical start-ups, plunged to $1.9 billion last year (the least since '81) amid investment losses that roughly tracked the public markets. Yet over three years and longer, these funds have outperformed stocks. "The tourists...

Author: /time Magazine | Title: Investing: Come On Out! | 3/24/2003 | See Source »

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