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.

Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Bond who wrote (2810)	4/16/2000 9:22:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 6516

Your dad gave you sage advice, Jeff. Make sure to tell him that you've been singing his praises; it will mean a lot to him. As far as losses are concerned, hope ranks well above portfolios, homes, cars, and savings accounts. Without hope, there is simply no chance for recovery. Let me tell you what I think will stop this carnage well short of the "nothing left" scenario you reference. Companies like the ones your dad talks about have a definable value - they generate profits every quarter and own tangible assets. Many of them have NO DEBT and large amounts of cash in the bank. When valuations become unrealistically low, these great companies will begin buying back their undervalued shares. Henry Yuen reached that point last week, and I expect others to do so in the weeks to come if the panic continues. This is the reverse of dilution, so eps and shareholders' value will be increased and the slide will stop. Younger investors, as well as us older ones, can learn valuable lessons from this correction/crash. Please allow your uncle to offer some unsolicited advice - which I also have given to my own children: 1. Invest in great companies, not great stocks. I consider Gemstar to be one of the coming great companies. 2. Buy only what you can afford - don't let greed or impatience drive you to use margin or options. 3. Read The Millionaire Next Door and see how lasting wealth has been gained by earlier generations. It has more to do with controlling your spending than increasing your income. 4. And if you're a tech investor, read The Gorilla Game. I consider it to be a bible for high tech investing. Good fortune to you in the coming months, Jeff. uf