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

To: Chuzzlewit who wrote (44188)	5/21/1998 6:26:00 PM
From: Paul Merriwether	Respond to of 176387

< Okay, since you guys obviously didn't take the time to read the fact that I said this was purely hypothetical, >> I apologize. Got carried away there( saw red with the 40% perpetuity stuff!). and I loved your gum bowl analogy. El-wacko supremO!

To: Chuzzlewit who wrote (44188)	5/21/1998 7:18:00 PM
From: Michael Burry	Respond to of 176387

since you guys obviously didn't take the time to read the fact that I said this was purely hypothetical I saw that. But you're not the only one talking about 40% growth as if it is perpetuity. That's why the buy and hold strategy is a winner over the long run. Ah, but only in the best of times, like a 15 year bull. Invested your money in the top stocks of 68 and you saw your real level of inflation-adjusted assets come back to breakeven around 85. Disney and other well-known companies lost 80-90%. The PE on the DJIA fell to 6. 15-20 year droughts do occur. The 1929 crash saw real assets approach break even again in 1955. Imagine an age where people just don't care that a company is growing 3X it's PE, or where debt-free large caps sell at half their net current assets because people want anything but stocks. Granted, most of the time you needn't worry. But at certain times you certainly should. Right now has all the hallmarks of one of those times. Dell is exactly the kind of stock that can come crashing down to earth with a recession that halts the demand for technological advancement and commodity dumping of product. In retrospect, most people say it was easy to see. Oh, I forgot. This is the new information age. Besides, people today are smarter than they were back when big crashes happened. Good Investing, Mike