<<Bob did it again today, and yesterday, and a couple of weeks ago and the week before that....everytime he is on the show it seems he is absolutely obsessed with talking about how overvalued the internets are...>>
You may calling it being obsessed, but I call it doing his job, part of which is to make sure his listeners understand the concept of risk, and what is a risky investment and what is less so. Too many unsophisticated investors have lost too much money in the latest high-risk, high-flying sector. Bob's dwelling on the subject is made necessary by the incredible enthusiasm, or to use Dr. G's turn of phrase, "irrational exuberance" that people have for Internet stocks. The mere fact that there is even one person out there who has something like 40% of their portfolio in an AOL, for example, is justification enough for the point to be pounded home week after week that, "Hey, folks, these stocks are risky. In fact, these stocks are so risky that in some ways they are more like gambling than investing!"
Take a look at this list that don lane provided, of the highs for some of these stocks, and then check the current prices for them:
beta.siliconinvestor.com
Some of the people who listened to the "price doesn't matter" crowd have lost 80% of their money, and I sure that some who were on margin were just wiped out. These are real people, who have lost real money, and I, for one can forgive Bob's sounding like a broken record if he can keep a few more investors from becoming "the greater fool".
<<...these internet stocks are not quantifiable...>>
Now there's a ringing endorsement for an investment if I ever heard one ... NOT! |
