****OT*****
It was my understanding that the total transactions in b2b are trillions annually...
Right. But how many of those trillions will be handed over to the suppliers of this new form of communication? To quote old man Buffett, "The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."
Now, to me, if there is any tech company that possibly has such a competitive advantage, it is Cisco. However, too many people seem to be in agreement with me and have already bid the stock to where it should have been in 15, 20 or 25 years. So, it is an issue of valuations -- the higher you pay, the lower your returns; and the lower you pay, the higher your returns. And if any competition comes along that can sour Cisco's earnings even a little bit, then look out below. Not to mention a bear market where stocks with the highest P/E are subjected to a slow water torture and then, one fine morning, taken to the backyard and shot. |
