To: Uncle Frank who wrote (24684 ) 5/13/2000 8:22:00 PM From: tekboy Read Replies (6) | Respond to
Actually, Frank, I think you and Merlin have hit on an interesting ambiguity, which shows that GM might not be as precise as you believe.relative valuation and the long term. In other words, he is saying that when the dust settles the gorillas will continue to do better than the market in years to come, so it would not make sense to sell a gorilla now and put the money into other stocks.also says that "the Internet early market enthusiasm in investors probably carried all stocks too high," i.e. that there was a severe disjunction between all highflying tech stock prices and the underlying fundamentals valued in Pirah's or Merlin's way. He implies that this absolute overvaluation was unsustainable and is now coming back to earth. But if this is true, and one could have understood it at the time rather than in retrospect, then it would indeed have made sense (putting tax consequences aside for a second) to sell one's gorillas above a certain altitude, go to cash, and buy them back lower down.
