No long term shorts. If I were hedging, which I am not right at this very moment, I'd box the Internuts.
I was talking about "core" holdings, stuff that I would hold as a core position for the next 12 months, minimum.
What do I base my picks on? cOUSIN SHORTY looks at the web sites, and if they are dull and boring, he likes the deal. If they have dancing girls and flashing colors and spiffy stuff like that, he shorts them.
"It's a Peter Lynched thing." he says
Seriously, I just follow the stocks. All those stocks will benefit from the Internet, which is Bigger Than The Wheel. I think the Internet is the biggest thing this planet has ever seen technologically, and it is still in its formative stages.
The "darlings" like EBAY and AMZN and all that are so overvalued that it is beyond ordinary comprehension. I don't think they can hold up. But CSCO, ASND, MSFT, WCOM, those guys are positioned to make money. Yeah, they are "overvalued" by "traditional" standards.
But they stand to make money. Big money. Real big money. And if they get whacked, which can always happen, I won't be worried.
Look at it this way: when the market tanked in October, did you buy stock? If you had known about CSCO, I mean really known the company, or ASND, really known what they were doing, the products they make, the money they make, you would have seen ASND at 35 and CSCO at around 45 bucks, and you would have said, who cares where the market goes, who cares if it tanks another 1000 points. ASND at 35 bucks? That's a no-brainer! CSCO at 45 bucks? That's a no brainer!
ESPECIALLY if you missed them in January of last year and watched them crank up. I mean ASND was 25 bucks 12 months ago. Screw AMZN and EBAY, I don't want to have a friggin' heart attack some morning when The Bad News hits and the stock goes from 321 to 39 in three minutes and I can't get my order in and even if I could, it's over.
And you would have been right, which is the main thing here, and you would be real real happy right now, because you would have the stock for your kids, and ASND is at 65, and if ASND ever goes back down to 35 (assuming the fundamentals don't change radically) then you just buy some more stock and sit back and watch it go up. |
