Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: LauA who wrote (9501)	1/4/2000 2:38:00 PM
From: Bob Rudd	Respond to of 78520

LAU: BRK - Good points on Selling by GenRe holders - probably a more important near term issue impacting share price. GIECO advertising is attention getting and entertaining and I agree that they are leveraging low-cost producer position - with a low-price based appeal/position. Near term this works well because they're direct approach supports it well. The problem comes later in the game when all players migrate to net. Who will intermediate the market: Individual players like Gieco or infomediaries like insuremarket? And what happens to profitability when several large players with net based direct cost structures are a click away - it's a change in industry structure coming closer to pure competition that impacts absolute profitability even though BRK may still be lower cost producer. In this environment, you want a brand differentiated on qualitative rather than price to get higher margins than dumbest direct competitor. WEB isn't a total technophobe - the existing GIECO site attests to this, but will he and the GIECO team be able to position the brand and operating activities in this new environment? Don't get me wrong, I'm lately [& lightly] long and hoping for the best - but strategic positioning in net-driven environment is major concern for long-term value. Sorry for long post, bob