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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (160542)	9/9/2000 2:21:55 AM
From: Meathead	Read Replies (1) \| Respond to of 176388

Re: I think our big difference on this issue is if it was more straight forward the high prices wouldn't stand... I don't think we actually differ much here. If you suddenly move the cost out of the bucket that nobody pays attention to or pegs valuation against and into the bucket that everyone does, there would probably be a gut wrenching upheaval. But, would it really affect current valuations or would we rationalize and re-define the loose metrics that are currently used to value a stock? My guess is probably. So maybe we do differ in that I bet the investment community would ultimately figure out how to make it a wash. But the current valuations I've learned not to argue with because It's all perception driven. If I were to value stocks the way I value income producing rental property in a market where real estate prices are rising, I couldn't begin to come near the market caps of companies like CSCO, AMZN, INTC, DELL etc... For me, It would be like buying a duplex in Austin that generates $1000/month in rents for over $1 million. I don't care what neighborhood it's in, that's not a good deal. $1 million in FDIC insured CD's will generate 5 times that amount without the headaches of dealing with tennants. But, if I were convinced that the duplex could possibly be worth 1.3M within in 1 year, it might be a great deal regardless of the income it produces. It's all relative. Valuations are set by the market for that asset whether they make sense or not. Even the risk free rate of return seems to have little to no bearing on the price of technology stocks. How does one value growth? We currently don't value it the way we did 5 years ago. Will it be more or less 5, 10, 15 years from now....??? MEATHEAD