A good company does not always make a good stock.
But sitting here in the middle of the night wondering if Q, a great company, will once again turn out to be a great stock for 2000.
Caught an interesting bit of data in some newsletter the other day...if you had a spare $250 billion sitting around, you could either buy all of AOL, Yahoo, and eBay, with total earnings of $833 million. Or you could buy all of 6 golden oldies..Boeing, Sears, Alcoa, GM, Dupont, and Philip Morris, with earnings of >$18 billion. Even if the 3 internet companies grew earnings at 50% per year, it would take them until 2007 to catch the golden oldies. If the golden oldies grow at just 8% per year, it will take until 2009 for the 3 internet companies to catch up.
Interesting math.
kokomama |
