"I'm just trying to understand the IBM phenomenon,..." Because of its breadth and magnitude of activities, which include hardware, software, chip-making, computer services, etc., IBM is, in effect, a one-stock computer industry mutual fund. And, Lou Gerstner's asset picking skills are already built into the price of the stock. Unlike a computer industry mutual fund, you don't have to pay an additional 1% or more per year to have a 27-year old fund manager turn over the portfolio annually, thus creating a lot of tax liability, even for buy and hold fundholders.
I have been recommending IBM since late 1992, when it fell to (a split-adjusted) 25 -- and have taken a steady stream of criticism from (friendly and helpful) colleagues ever since. However, now that Wall Street has discovered that IBM is not going away, I'm less comfortable. Obviously, IBM is no longer the bargain it was then. Nevertheless, is there a safer way to invest in e-commerce?
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