Geoff,
Another point to add to your discussion: it's a lot easier to copy a piece of software than hardware. The rise and fall of software co., like you mentioned (Corel, Borland, Lotus....) is everything that models the high competition of this market.
Why do software companies rise faster and fall faster than anyone else? Corel, Borland, etc. Need any more examples?
And yes, I would never go long on any software company at a price level such as PSFT (exception MSFT), knowing it's just a matter of time before some unknown company comes out with a competitive software package and kills the markiting share of PSFT. And believe me, when the software company falls, they fall like a rock, literally!
To those who made a 15 bagger or so in this company, I suggest lock a profit and invest into other high growth co. I really doubt that Peter Lynch would put his money into PSFT at the current price level.
BTW, I read just about every investment book available out there, and none of them provided me with any practical investment strategy. For one thing, they never mentioned the ART of SHORTING! I just have to learn through my own experiments and mistakes to gain valuable experience.
Short on PSFT!
Jon |
