Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: Yarek Szolomicki who wrote (3149)	4/16/1999 1:50:00 PM
From: Marc	Read Replies (2) \| Respond to of 5927

--OT--INTERNUT Read this lately in a Merrill Lynch report on Internut and thought i would let you know: here's an abstract: With these types of investments, we would also argue that the real “risk” is not losing some money— it is missing much-bigger upside. Investing in hyper-growth stocks is not about preserving capital (that's what bonds are for); it is about making sure that you are on board the train if and when it leaves. If you are long any equity and if you are one-hundred percent wrong and the stock goes to zero, you can lose 100%. When the long-term upside is only 20%-30%, 100% is a disastrous loss— and the risk/reward ratio is poor. When the upside is 300% or more, however, the possibility that any individual investment in a balanced portfolio will to zero isn't as bad. We do not entirely agree with Alan Greenspan that buying high-quality internet stocks is like buying a lottery ticket— we don't believe the odds are that bad— but we do agree that many skeptical observers of the sector have the wrong mindset. We would argue that in this sector, the real “risk” is not that you lose money if the sector corrects, it's that you miss a potential 3X-10X upside. risk/reward ratio. Change my view a little since i've read it (about 10 pages) Marc