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

To: t2 who wrote (18778)	3/25/1999 12:37:00 AM
From: taxman	Respond to of 74651

"Bill Gates does not know much about investing." well he did invest in microsoft before some of us did. i would imagine he isn't doing too badly in real estate either. i believe his point is that microsoft cannot control its competitors bringing out better software the way gillette can control razor blades or coca cola can control soft drinks. for example look what happened when compaq came out with inexpensive personal computers that were able to perform tasks previously done on an ibm main frame. ibm, the microsoft of the the 50's, 60's and 70's, still hasn't recovered. by the way he also says ''The rapid growth we've had -- that same percentage -- isn't something that people will see in the future.'' this makes sense to me in that the rapid growth just has to slow down just as dell can not continue to grow at 50% either. peoplesoft is another example. its growth slowed drastically even though it looked invincible. so is microsoft worth almost 60 times fiscal 2000 projected earnings of 3.02 which is only 15% higher than projected fiscal 99 (2.63). would it be prudent, therefore, to sell a portion of one's shares or maybe purchase long term puts for protection? regards