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

To: Shane M who wrote (5727)	1/12/1999 8:19:00 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78680

Shane: Good point on hiring Wal-mart execs, but the effectiveness of an organization depends on the team as well as the coaches. Besides, hiring those execs has put AMZN in a legal battle with big Wally. Timing: The whole point of my averaging in with small increments is that I'm NOT trying to pick a top, only establish a position at prices that differ greatly from intrinsic value. I don't know how far the "Rubber band" can be stretched before this thing snaps back to some realistic valuation based on the present value of real earnings appropriately discounted for risk. I don't know when it returns. I know a lot of real smart folks have tried to nail that top and have gotten nailed instead by being forced to cover due to excess exposure. My positions are small enough..under any scenario I can imagine that this won't occur. The only thing that would get me to cover would be if Bezos uses his overpriced stock to buy assets of real value, well priced, that fit his business model well enough that earnings will eventually be generated to justify the cap...and the market lets him do it, without penalizing share price for mixing his internet play.