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Technology Stocks : Internet Analysis - Discussion

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To: Chuzzlewit who wrote (388)11/8/1999 11:13:00 PM
From: musea  Read Replies (1) of 419
 
Chuzz,

This is exactly the reason I've stood on the sidelines watching the internet stocks fly by in both directions. Warren Buffett made the point that there isn't enough growth in the entire economy to support the valuations of the internet stocks at the time (BRK shareholders meeting). Warren has come back (Fortune article recapped on Motley Fool, fool.com to point out that two other economy-changing industries made very few "winners" - automobiles and airplanes. I'm sure a lot of people will disagree with this, but perhaps this is the right way to assign the proper long-term valuation (say 10 years) to most internet stocks: $0.

-musea
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