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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (13441)	12/22/1998 1:14:00 PM
From: RocketMan	Read Replies (2) \| Respond to of 74651

Such prices can only be supported by the "greater fool" theory of valuation. Unless someone is holding a dividend-paying stock such as a utility, the greater fool theory might be applied to the entire stock market.

To: Charles Tutt who wrote (13441)	12/22/1998 10:49:00 PM
From: Brian Malloy	Respond to of 74651

You wrote in ref to internet stocks: "Such prices can only be supported by the "greater fool" theory of valuation, which (IMHO) does not lead to good things." What you write as you state is your own opinion but it is the easy way out for those who don't understand how to succeed in making money in a new and volatile sector. Not making the quick 10 bagger now but the 100+ bagger in a decade. As a group, one may say greater fool but there are some diamonds in the rough that will polish up real nice in a few years. As an example, there were a whole lot of "greater fools" in 1994 that bought AOL. Fools that bought $2000 worth of AOL at that time are sitting on over $100,000 today. Of course no one can say what the future will bring, but there will be winners, losers, mergers and so forth. By investing a small amount early and sitting back the probability of having a big winner long term is enhanced. Of course other funds can be used to trade, use options or whatever, but if you hold your initial internet package until the next "AOL" or "DELL" emerges then it really doesn't matter what happens to the chaff. Putting money into each of the current leaders such as AMZN, CMGI, BRCM, EBAY, YAHOO and others will have you smiling in 2005 or 2008. However, it only works for the patient. It happend for me with MSFT and INTC. It will happen again with a couple of the "greater fool" internet stocks. Just a thought.