SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Michael Burry who wrote (6882)4/22/1999 8:45:00 AM
From: Dan Meleney  Read Replies (2) of 78486
 
Mike, I disagree on CPU future:

But some of that depends on our definition of how long the future is. Two years or ten?

I looked closely at CPU in early 98. Price about 33. PVing my projected earnings, I valued it at 17. When it fell below 17, I took another look, thinking I could now get in at a discount due to short term bad news. But now I dismiss it because of the business model that I think is doomed.

IMO: Two years from now, CPU will still be around. But it will be gone in ten or less. There won't be a national physical chain of stores. Software will directly downloaded or, like TurboTax, an impulse buy at Walmart. Little odds and ends will also be picked up at Walmart. PCs will be sold over the net or at non-specialty stores as they become even more of a commodity item.

So where does CPU land? It may be a showroom for PCs, but I doubt it. More likely it will evolve into a service shop.

I think you can take the internet retail concept a step further to apply to everyone in the mall to some extent. The information age explosion eliminates the need for so much of what's there. Why should I go to the kids Gap store in three different malls to find 6 pairs of jeans for my 9 year old son for school? I know his size and what I want. I should be able to just click on style, size, and color and have them arrive at my doorstep. And I do. My wife bought EVERY Christmas present via the net last year.

Time and convenience needs will kill brick and mortar.

Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News