8. BETTING ON THE BUBBLE
By Michael Makowsky
Contributing Editor
The Bull Market Report
David Wetherell is either the smartest man on earth or the world's #1
chump.
It is sometimes amazing how fine the line between the two can be. You
see, David Wetherell is betting on "The Internet Bubble" and he is betting
heavier than just about anyone else out there, with the possible exception
of Softbank.
David is the CEO of CMGI (CMGI), with a public company portfolio worth in
excess of $5 billion.
See David.
See David Invest.
Invest David, Invest.
This guy really believes in the Internet. He evangelizes on the Internet
so hard you expect an 800 number to appear at the bottom of the screen
asking for donations. This guy is a believer. And, at least for now, he
is personally worth more than a lot of really clever guys such as myself.
It is easy to talk about investing in Internet companies. It's something
entirely different to invest in the Internet. And that is what he is
doing. He wants a piece of the whole enchilada.
Seriously, take a look at CMGI's holdings. They are creating an online
cartel. CMGI has in its family of holdings quality companies in all of
the hottest sectors. Furthermore, all of these companies can leverage
each other to improve their own content and capabilities. CMGI
"encourages" their children to do business with each other. This is a
legitimate, and in some cases fairly hefty advantage over the competition.
While CMGI is investing almost exclusively in the Internet, they are
investing very broadly within the Internet itself. Equity holdings
include AltaVista, NaviSite (NAVI, $53), OneCore.com, Shopping.com,
Chemdex (CMDX, $67), and RagingBull.com. They have B2B plays and B2C
plays. They have Internet Advertising companies and Internet Software
companies. They have a little bit of everything. The bottom line: If
the Internet succeeds, CMGI succeeds. Big time. The question you need to
ask yourself if you are considering investing in CMGI is this: Do you
believe in the Internet?
This is where it gets serious. A piece of CMGI doesn't come cheap. But
if you listen to David speak, more than likely, you would consider an
investment in CMGI shares. Think of it as hedging your bets. There is
something be lost if "The Bubble" does burst, but it is small change
relative to how much can be gained if and when the Internet Bubble
encompasses the entire business world. |
