>>What's next?
In five years, leading Internet companies could very likely have higher valuations. We've been saying that for at least the past three years, and will probably say it again in 2004: "In five years, leaders could likely have higher valuations." The medium is growing so quickly and offers so much opportunity that, rather than popping like a bubble, demand for the medium's leading stocks is growing. In fact, mutual funds devoted to Internet-related companies are now proliferating like rabbits. The new funds (which are just beginning to emerge) in turn create higher prices for the leading stocks. <<
Amazon vs. eBay?
What's the fight about? Plus, Starbucks
by Jeff Fischer(TMFJeff@aol.com)
ALEXANDRIA, VA (April 5, 1999) -- The Rule Breaker continued its record-making ascent, adding 7.7% or $65,000 today -- 30% more than the portfolio's 1994 starting value of $50,000. Investing in more than a half dozen losers over the past four years and just a few large winners has resulted in a total return of 1,638%, against the S&P at 201%, and has grown $50,000 into $869,443.00.
"Wow. Impressive! It must have taken great effort!"
"Well," -- shuffling feet -- "actually, no. Of course not."
Foolish investing involves buying companies that you know or use (AOL, Amazon, Iomega) and holding on as they grow, and grow... and grow. Sometimes you hold on too long (as with Iomega, perhaps) but the successful investments that you continue to hold will crush your mistakes into insignificance over the years. Incidentally, this young year we've had great successes. The top-five performing stocks on the market in the first quarter of 1999 included three Rule Breakers: @Home, America Online, and eBay. We call the results "The Rule Breaker Sweep."
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