Tommaso,
"Were investors out of their minds? Wall Street analysts were happy to reassure them on this point: No, they were the privileged financiers of the new economy."
Two points.
1) I once long ago worked on the Silver Screen Limited Partnerships, which was basically a couple of guys in a musty office in Manhattan, selling interests in movie production on the typical, hedge fund style, hurdle rate 20/80 split of the profits. Although some of the later partnerships helped produce some interesting movies (Richard Dreyfuss' comeback, etc.), the partnerships on a risk/reward basis were not good bets. High risk, limited reward. I asked one of the principals about this and he repeated the classic line, "we're not selling them the steak, just the sizzle; the smell of the greasepaint, the roar of the crowd, ah showbiz."
The bubble? Don't concern yourself with old paradigm stuff like cash flow, profitability, debt/equity and price/equity stuff. That's for hidebound old geezers. Why, you're the privileged investors of the New Economy. You ARE the intellectual aristocracy of the New Capitalism.
2) How do you change the typeface on your posts (bold, italic, etc.)? Inquiring minds want to know . . .
TIA,
Kb |
