Ok, fine, but the problem is that only the shorts are asking that question right now, and that's why most of them are losing money.
I think you're missing my point, which is that NOBODY disagrees with you on valuation. EVERYONE agrees that these companies are overvalued by any traditional measure. But valuation is currently IRRELEVANT.
A certain percentage of people throughout history saw the potential of companies like KO, MSFT, IBM, ORCL, GE, WMT, T, and GM when those companies first offered shares to the public. Those people loaded up the truck at the split-adjusted initial price of $0.01. What if those people had paid ten cents per share instead of a penny? Today their net worth might be merely $10 million instead of $100 million.
Some of us believe that the recent appearance of Internet companies represents another point in history like that. You don't, and one of us will be right.
I don't care if I pay $50 or $100 for these companies. Yes, my vision of the future may be wrong. But my downside is 100% and my upside is much, much higher. You're in the opposite position, we're both comfortable where we are, and I wish you luck in all your investments. |
