You're confused, WTSherman. A Report:
At least 3 things are wrong with your analysis:
1) While anyone can launch a Web site, your conclusion that barriers to *competition* with leaders are low is, well, naive. Go ahead, try it...
2) If Ford is a better investment than DBCC or MKTW, let alone YHOO, why isn't *your* money in Ford? (And God forbid, what are you doing *here*?!!) For the Net, firms like AOL and YHOO are setting the valuation standard. This is obvious on its face.
3) You tend to mix apples and oranges. A short-term trading strategy has nothing to do with a long-term investment strategy. So which is it for you?
Presumably, your view is that the Net represents the proverbial investment "bubble." You know, "tulip-time!" You don't believe this paradigm is real or that these firms will ever "earn" their current valuations? If so, thank you. It is this conventional wisdom that has provided handsome rewards to those who "get" the Net.
Think about this, WT. These Net "butterflies" are not so much operating companies as they are intellectual property portfolios. Somehow, people seem to know and understand this. Meanwhile, the base of Net investors is broadening out very quickly and investment capital is prodigious. Maybe there's a Ford in your future after all...
BAM |
