Michael,
I thought you might enjoy this exchange with my son, who called me a few weeks ago and told me to buy RHAT. WHen I saw the price, I laughed. Of course it's gone up 103% and I am taking a lot of grief about it.
I tried to explain earnings, and fundamentals, and he actually wrote back and used the words New Paradigm! Apparently a lot of the students at Rice invest and even day trade between classes, so CW has opened an account at Waterhouse, and is going to start.
Here is his explanation of Redhat, and I guess, his investing "strategy".
"It's all about buzzwords, and right now LINUX is really hot. So you just find the company with the right buzzwords and the in technology, and they're going to soar. Then you get out when it stops being about the tech. and ordinary people are just trying to make money."
THe horrible thing is that he's been right for a couple of years now, and I'd be very very wealthy had I listened to him.
But it sure scares the heck out of me. |
