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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.11-3.3%Jan 20 3:59 PM EST

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To: Eric Wells who wrote (86251)12/5/1999 11:33:00 PM
From: Randy Ellingson  Read Replies (1) of 164684
 
Hi Eric,

Randy - you're being a bit presumptuous. You have no knowledge of the investment returns or the amount of worry of those of whom you write - and as such, your suspicions may be wrong. One can certainly have long-term holdings and still be concerned that the market has gotten a bit over-extended.

Sorry. The implication (as I inferred it) was that your friends and relatives would take some action based upon the market being "over-extended". Otherwise, what's the point of being concerned about the aggregate investment environment? I suppose the question of adding new money takes into account a particular asset's price, but even predicting a single stock price movement more often that not reduces that investor's return (the extreme case being day traders).


And please tell me - what is "open-minded research"? I suppose you mean "good", "solid" or "well-grounded" research. I've done a bit of what I consider to be "solid" research that suggests that AMZN and YHOO are both over-valued.


Open-minded research just means being willing to change your mind, being interested in learning more about new industries/markets that you feel may contain excellent companies, and being willing to ask why investors may feel positively about a particular company or set of companies (and to consider the "bullish" points as well as the "bearish"). While I feel that one should always invest within their realm of knowledge, incrementally extending that realm to new areas can be very useful for improving long term gains. I don't think any particular stocks have anything to do with this.

That said, do you have an estimate by how much AMZN and YHOO are overvalued?

Randy
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