I am sure that you will have the chance to by in low-mid 20's.
Ameritrade is a service firm, so their product is service
customers. It is true that ccustomers do not switch often -
because it is not so easy to move your assets from one account
to another. But the bad service implies that Ameritrade will not
attract new customers - and the current customers will not add their
capitals to Ameritrade. This means, at least, that the growth will
be slow.
It is a big mistake to say that technology will be improved and
that the problem will be solved. New, more complicated, technology problems will emerge, especially
in such internet business. From my own more than two years experience
with Ameritrade I conclude that their engineers don't have enough
expertise - because the warning screen "Some accounts are not
updated...", the "servers are temporarily down, please call ....'
appear almost every week.
I used to work with Gateway computers, Dell computers and sun
workstations and saw that the products are great. So, I bought
their stocks. Such simple approach is suggested by P. Lynch.
If Datek goes public, I shall buy their stock, because I know
that their service is, in principle, good.
I shall watch for improvements in Ameritrade, and if I don't see
much, I shall short AMTD the same moment when I decide that
the market will take a correction.
Best to all,
WV |
