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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (601)	11/24/1998 8:37:00 PM
From: Shane M	Read Replies (3) \| Respond to of 4691

Jim, I've heard that before, but I think to place no value on these companies is excluding from your investments what I think will be the dominant trend going forward for the next 10 years. Efficiency gains to be had through internet utilization will be sizeable, and I think most companies out of competitive necessity will move parts of their business to the internet. At my company, Allstate, I see alot that we could do through online activities to cut our expense ratio, improve customer service, and expedite claim handling. Having leaders with the vision to implement is a different story... I recall something from the "Lone Star Growth Investor" that Joe Dancy writes for where he compares internet stocks to the great railroad investment boom and subsequent bust. I wonder if other analogies don't apply, however. Did early media companies look similar to some of the internet stocks of today? It seems to me there is significant first mover advantage on the net, and the AOL deal for Netscape at $4.2 billion or so indicates that eyeballs on the internet are highly valued right now. I guess Buffett would flunk me, because clearly I think they are worth something. I don't know how to value them though. Many are beginning to turn a profit, so perhaps in about 5 years we'll be able to value these companies using more traditional measures. Shane

To: James Clarke who wrote (601)	11/25/1998 12:52:00 AM
From: Fredman	Respond to of 4691

Old story..... But, people better get used to the fact that (so far) Internet investing is 'where it's at'. Does this mean the 'Old school of investing' should close its' doors ? NO WAY ! With the I-Net and tech stocks nowadays, they are just more tools to throw into the fire. WEB doesn't understand how to figure VALUE in them, and neither do I, but that doesn't mean I shy away from them. I still buy and sell the 'traditional' stocks - (how do you figure value in a pharmaceutical company, with all they spend on R & D ??), but i am also into some I-Net stuff as well (about 20% of my holdings).