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Non-Tech : Abercrombie and Fitch -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (313)	6/27/2000 1:53:00 PM
From: J.Y. Wang	Read Replies (3) \| Respond to of 335

ANF showing signs of life. So is AEOS and some other apparels. There is a lesson to the tanking of AMZN, and one I have harped on for a while. AMZN is in a business with no barriers to entry and little room to create brand equity. Brand equity can be simply defined as the margin a brand can extract from its products/services. ANF has brand equity; It sells t-shirts for $30 and pants for $60, and people actually buy it; AMZN sells a book for 15% profit and people go to buy.com. Schwab commands $30/1000 shares while Datek only commands $10/5000 shares and Schwab is still the largest online broker; Schwab has brand equity while Datek is a commodity player. These are very simple concepts taught in the marketing and corporate strategy classes at the top business schools but can be deduced from common sense. As Warren Buffett said, value is not the ability to sell something, but the ability to sell something above cost. And the higher you can sell something above cost, the more value you have. ANF has value.