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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: phbolton who wrote (10934)	6/5/1998 3:30:00 AM
From: Thomas C (Hijacked)	Read Replies (2) \| Respond to of 27307

Guys I know this may sound crazy, but I am trying to think if a 'buffet analysis' applies to a company like yahoo. What I am trying to say is, if yahoo, possibly will be the next microsoft, cisco etc. As you know Warren Buffett likes strong franchises, good business models, understandable businesses, excellent management and value. What I am trying to imagine is if yahoo can become a major global media company in the next 20-30 years. The Yahoo! name appears already in its early stages to have strong franchise value which will only grow as generation x ers come of age and start to run the world. And I am beginning to think that yahoo!s business is like the newspaper business right? Content which generates ad revenue. Just look at the washington Post newspaper, a warren buffet holding. Obviously a great investment by buffet, but as you know there are many newspapers and so one wonders why he chose that one. He chose it based on its superior management and franchise value of course and the 'newshole' that it has which means it has more written content and less ads. Nevertheless Buffett has always said the the economics of the newspaper business are some of the best there are. No matter what happens in the world, earthquakes, 1929 bear markets, you name it, the newspaper will always be needed by the community to keeps it's roots together. And so here we have Yahoo!, but in a different medium, a medium that can spread like wildfire all over the world. Yahoo has some special content in about 10 countries and languages I checked. Well Coca Cola has its franchise value and business spread in almost every friggin country in the world. So obviously there is a growth story there and potential, fast potential. Of course we don't have 100% computer penetration in the world which would be necessary to solify their business model. But we will get there, the usa is leading the way. And so is Yahoo really the "Washington Post" of the internet? I am beginning to really analyze this question. There will be internet connections in cars, bus stops, homes, businesses you name it and Yahoo will be there to provide information. So lets debate this issue, THINK BIG and tell me where you see Yahoo in 30-40 years. Does it have the elements of a BUffet pick? The reason I am pondering this, is because I am sick and tired of timing the market. I know we will have bear markets, heck we may even have a 1929 decline for the next 3 years( In fact I am predicting it and have some SOLID evidence that a crash is near). But What element of Yahoos business will suffer from this decline? I cant think of any. Obviuos ly ad revenue could dry up during a depression. But Yahoo does not have any huge inventory or is not a box maker selling commodities. yahoo can still grow what ever the market situation. I was looking back at value line charts and noticed how intel between 1967 and 1980 did nothing but move up in price while the overall market was sideways and boring all the time. So it makes me wonder if yahoo can pull of the same feat in the tough times ahead. Cisco has returned over 300 times their money to investors in 6 or so years. Yahoo has so far returned 10-12 times since going public. Are we headed to 300? Is Yahoo the ultimate buy and hold????? Regards, Tom