Buffett defended his position by saying very few internet-based firms will generate any
real wealth over the long term -- beyond the instant riches nabbed
by promoters and Wall Street.
Many new tech firms simply ``monetized the hopes and dreams of millions of people,''
said Buffett, as they raised huge amounts of cash from the stock
market. ``Lots of money was transferred from the gullible to the promoters,'' he said, as
investors chased after ``easy money''.
Wall Street was the main benefactor of this ``huge trap'', said Buffett. ``Not by great
performance, but by great promotion''.
Buffett attacked a conspiracy between companies, their consultants and Wall Street
analysts in manufacturing earnings to suit unreal growth expectations,
particularly in 'new economy' firms, charging that some current accounting practices
were deceptive.</b? ``A lot of companies don't want to account for
expenses,'' he said. |
