Stock Operator: Firstly, I am not sure where you get off calling other investors idiots. I don't own YHOO now but I am watching closely.
Secondly, if you hold to a true valuation philosophy when analyzing your potential buys, you will miss out on 95% of what the markets have to offer. While value investing a fundamental tactic to solid performance over a long period of time, it does little in taking advantage of what the current environment is offering, perhaps not at this period in time, but in the recent past.
Were the "idiots" chasing CMGI, ICGE, JNPR, SDLI, JDSU, QCOM etc. etc. when they were technically over-valued before running another 5 or 10 fold truely idiots, or was it there person that clung to old valuation methods for picking stocks and realized 10% return when they could have realized 500% or more. The only true method of objective "investing" in mind is a mixed bag of holdings including sectors that happen to be hot at the moment, regardless of valuation.
Just because one purchases a stock that is technically over-valued does not preclude one from selling it in the face of a bear market, or even a valuation correction. But, more than a valuation market, these markets are supply and demand, and many traders ignore valuation as it does not come in to play for an intraday trade.
As for YHOO, hard not to see them as a force in this space, and hard not see some value at the current price. I wouldn't take a 100% long position here, but I wouldn't hesitate in taking a 50% position after the dust settles.
But to call current holders idiots labels you, and rightly so.
tJ |
