.com stocks are worth a gazzillion dollars for a bunch of PC's
Well Offshore, you certainly have trouble seeing past this barrier. That's fine as it is your way of thinking and you get to invest your $$ however which way you want. But let me say this, the net is like no other form of business model ever before and it cannot be analyzed with the same tools as with traditional brick 'n' mortar establishments. It took awhile for WallStreet to realize this, which is why is took awhile for YHOO, AMZN & EBAY to go ballistic (relative to old fashion standards).
Furthermore, you are partially right when you say that these hyped up companies can be made or broken by the next article in a business daily or weekly. But as Warren Buffett says: "Stocks are easy, buy quality and hold on to it". For those who saw the beauty in GNET when it was at $7, I say "kudos to you". Personally, I think there is just as much foresight in that as there is pure luck. I am a more careful investor in that respect. I wait for the company to prove it is of high quality first and then get in. I believe the risk is much lesser then, while the growth can still be significant.
I lost my shorts in trying to believe Ktel was going to become a 1st tier Internet company. As in the wonderful book "Reminisence of a Stock Manipulator", that was an expensive way to learn about how not to invest in the Internet sector. Like everything else, quality (read "1st tier") is worth you investment $$, even if you don't exactly understand its valuation method.
Regards,
Dany |
