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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Wizard who wrote (379)	5/22/2000 11:28:00 AM
From: Eric Wells	Read Replies (2) \| Respond to of 57684

The new economy is gaining momentum while the stocks fail due to a lack of liquidity and anxiety from those who still don't get the fact that the internet is the future and its disruptive. Wizard - the internet is a great thing. But I think the truth is coming to light that forecasts of profits of internet firms have been greatly exaggerated. I certainly get the fact that the internet is the future - I work in the industry. But I'm not rushing out to buy AMZN or other internet stocks at the moment. Dollar-cost averaging and taking a long-term perspective work well in this environment. Sitting on the sidelines and exercising caution also works well in this environment. Its essential to buy a few things on days like today as your cost basis will look very good in a few months. Or maybe a few years - and depending on what you buy, maybe never. It amazes me that those who are blindly optimistic about the returns of internet stocks never seem to express caution or to write about the risks. I've been in business a long time, and I don't think I've ever witnessed such a thing. Every business venture I've ever been involved in, no matter how certain the success, there was always a focus on the risk, analyzing how the business could fail, and what could be done to ensure against failure. I guess we felt a certain responsibility with regard to the money we were spending. The internet perspective, however, is all about how the business can succeed - the attitude always seems to be "focus on the long-term, and ignore the short term risks". But the long term is a very big unknown. I suppose that's why so many internet firms are on the brink of failure at the moment - too much dreaming about the long term, and little focus on the nuts and bolts of generating a positive return today. -Eric