From TMF
<David<McDonalds or Gap or Dell, companies that did something unique well before the competition, and never got caught.>
Got caught at what? I find it amusing that you compare Amzn or even Yhoo to the above Co's.
Well before the above went public, what they had in common was profit making. Neither co ever, I repeat ever, said "If you love our concept, touch, feel and experience? We might make a profit by 2002", so please buy our securities.
The above co's never had to go to the Junk bond market to stay alive.
These 3 companies were making very nice profits before their stocks started to sizzle and sizzle and sizzle.
If you must compare Amzn to another start up entity?
May I suggest mining.
The ABC mining co is digging for gold. They raise $325 mil from speculators due to the hope and hype of finding this precious metal. The one thing going for the ABC co is, they are using a new technology called the Internet. The ABC co also fell on to something new.
There was a demand for Dirt. So they started selling Dirt over the Internet, albeit at a loss.
The speculators and Investors loved it because the demand for profit loosing dirt was so great the revenue continued to grow. The ABC co even told its investors that it was going to try and sell rocks, stones, clay etc ,
albeit again at a loss, until it finds the gold.
Please let me ask you. What will happen to the ABC mining co and it's Investors if they don't find that precious metal Gold?
Don't tell me Books, Cd's, Tapes, etc, because they're margin thin commodities and that's like Fool's Gold.
Fool on.
ps Have you ever heard of the Bre-x mining co? |
