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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Eric Wells who wrote (86311)	12/6/1999 11:58:00 AM
From: Randy Ellingson	Read Replies (1) \| Respond to of 164684

With the rapid pace that technology changes, it is possible that a company's business model can be rendered very unattractive by another company coming out with better technology. This is where risk lies - and I believe it is prudent to constantly evaluate it. This is very different from market risk, and yes, I do follow the news of companies I own. Randy

To: Eric Wells who wrote (86311)	12/6/1999 12:02:00 PM
From: Randy Ellingson	Read Replies (1) \| Respond to of 164684

A volatile stock market also poses risks to the economy. And concern over risks of a rapid decline in the stock market might lead a wise investor to hedge an investment (without selling), whether it be through options or other investments - one would have to have an appreciation for risk in order to do this. Wouldn't you agree? No, I wouldn't agree with hedging strategies; they cost money and are risky in and of themselves (the risk of missing upside in this case, and imagine how many people have done just that over the past ten years). Nobody has ever shown that they can consistently time the economy or the market. Everyone's timeframe and risk tolerance are different. Mine are pretty longterm and aggressive, but I still own PG, XOM (selling to buy BPA, which has a better solar energy development program), WLA, JNJ, MMM, ONE. Randy

To: Eric Wells who wrote (86311)	12/6/1999 12:05:00 PM
From: Randy Ellingson	Read Replies (2) \| Respond to of 164684

As for those aspects of Amazon I don't believe in, they include the following: 1. I don't believe in cavalier CEOs who make public statements about the unimportance of profits, and who refrain from emphasizing the risks of the company's business model. Bezos, I believe, stressed the importance of not trying to be profitable early on, which would necessarily cost customer and revenue growth. I don't believe he said that they are spending frivolously to avoid profits. And he began pretty early on saying something like he recommended a typical aggressive investor have no more than 1% of their portfolio in AMZN, due to risk. Randy